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US Citizen starting a trade company in Florida, manufacturing in Asia

Asked by: Antonella - 13 March, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Hi,

I'm planning to open a company in the USA. I'm a US Citizen, and would like to to have the S-Corp or LLC in Florida. The manufacturing and production of Apparel will be in Asia, India and Bangladesh. The importing would be done through LA and/or Miami.

I wanted to know what the best entity to use would be for a manufacturing/production company, having admin office in Florida but labor out of Asia. LLC or S-corporation? Also, are there any suggestions based on what you know of similar company setups?

Thank you!
Answered by: Robert Kowalski - 15 March, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Antonella,

I don't see any particular advantages or disadvantages of either LLC or S-Corp for your particular line of business, that is to say it's the same advantages and/or disadvantages as for most other types of business.

Keep in mind that if your business is owned by US persons only (that is US citizens or permanent resident aliens) and 100 individual shareholders or less then you can elect your corporation (or LLC for that matter) to be taxed as S-Corporation. However if you have at least one non??“US person or an entity (with the exception of a few trusts) as the owner then LLC is the way to go, since you will not be able to elect the corporation to be taxed as S-Corporation.

As far as state of formation, since your office will be physically located in Florida you should consider it as the state of registration.

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