What type of incorporation, LLC or Corporation?

[jmvillegast]

Hi, to all, I would like to register in South Florida my business. I do not really sell anything in the US, I mainly purchase leather (raw material) and leather products) in latin america and the supplier ships directly to my customers in China.

I am confused about how to proceed with incorporation, as I would like to do it right, but do not want to incur in unnecessary tax expenses.

To explain myself better, this is the complete process:

1. Customer places purchase order with us (US office).
2. We source the product (mainly in Central and South America).
3. The supplier invoices us (to US office).
4. Product is shipped directly to customer (in Asia).
6. We bill customer in China.
7. We received payment from customer (bank T/T or Letter of credit from Asia)
8. We pay supplier in Latin America (via T/T or letter of credit also)

So, we do not really sell anything in the US, but we received funds from other countries and must pay supplier in other countries as well.

Any help is much appreciated.

Thanks,

Joe

[phanio]

Tough question to answer. I am not an attorney and would suggest you talk with one to ensure that you are in line with the law. I do know that FL will want their piece of your revenue as you are headquartered there - the IRS too.
You might think about a foreign registration - in a low tax or no tax country (think Belize - they also speak English). Might help lower your tax burden. But, since the money flows here in the US - you will still be required to register as a foreign company - your state and the IRS wants their share!

[Spider]

Or go live in Belize and spend the weekends in Florida!

[tylerhutchinson]

As far as taxes, they will be the same for any business type. LLC will just make you less liable for any debt if you happen to not succeed in the future. I would speak with an attorney about it as I am not too knowledgeable with foreign dealing.