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6 Replies Last post: Dec 1, 2008 1:14 PM by aneita1

I'm French & willing to open a business: 2 quick questions

Nov 27, 2008 10:04 PM

Click to view skidoo's profile Professional skidoo 3 posts since
Nov 27, 2008

Hello everyone,


I'm a french fashion designer. I travel back and forth to the U.S. every 3-4 months, always with a 90-days tourist/business visa, thus I'm neither a citizen nor a permanent resident (understand: I have no SSN). I want to launch a line of clothes with a small office based in Miami, FL so I can facilitate logistics and slaes relationship with retail stores in US.


Here's my 2 questions:


1) I'm about to incorporate an LLC (we're 2 partners and both french citizens) and wondering what type of documents will the bank ask us to open a business account? Is a passport enough? Will they require a SSN? (I can't have one since I have no special visa allowing me to work)


2) My business is to design clothes, and have manufactured through cut & sew services (contractors). Therefore I will just have a design studio, no actual employee to manufacture my products. Is my business category considered a manufacturer or a wholesale activiy?


Many thanks in advance for your answers,


Christine

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Click to view Santa Fe CPA's profile Mogul Santa Fe CPA 67 posts since
Oct 10, 2007
1. Re: I'm French & willing to open a business: 2 quick questions Nov 28, 2008 2:48 PM

Hello Christine,

These are 2 very intersting questions you are posing here.

First you must obtain an Employer Identification Number for the LLC from the Internal Revenue Service, This is IRS Form SS4, This will be required by any bank for your business. The IRS will also issue you and your business partner Invididual Tapyer Identification Numbers in lieu of Social Secuurity Accounts. (You may have to go the IRS District Field Office in Miami for this process.) As a US Taxpayer, all your income, worldwide, will be subject to the US Income Tax Code, with certain exclusions and credits for taxes paid to other jurisdictions. You will need to record your travels to and from the US and the days here at your local office. Also record your transportation, lodging and meals and incidentals expenses for tax purposes.

Second, you would be classified as a manufacturer, even though the cutting and sewing are performed elsewhere by sub-contractors.


Good Luck,

Richard G. Robinson, CPA

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Click to view skidoo's profile Professional skidoo 3 posts since
Nov 27, 2008
2. Re: I'm French & willing to open a business: 2 quick questions Nov 28, 2008 2:54 PM
in response to: Santa Fe CPA

Many thanks Richard for this prompt response.


I thought EIN number was only required if I have employees. I will hire no one, at least at the beginning. And neither me nor my partner will be employee of the LLC. In this situation, we'll just be partners and get money from the dividends, right? Can LLCs disburse 'dividends' to its partners? How does that work in US?


Thanks again,


Christine

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Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
3. Re: I'm French & willing to open a business: 2 quick questions Nov 28, 2008 3:02 PM

Bienvenue dans ce forum Christine,

I think you've got a great idee to launch a clothes line in Florida, perhaps you can contact the French consultat, they may help you.


I am not in Florida, but on west coast, if you need help I will be glad to assit you.


Bonne chance dans votre projet,

Jean-Luc

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Click to view skidoo's profile Professional skidoo 3 posts since
Nov 27, 2008
4. Re: I'm French & willing to open a business: 2 quick questions Nov 28, 2008 3:09 PM
in response to: NatOnline
Merci Jean-Luc pour ce chaleureux message de bienvenue.
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Click to view Santa Fe CPA's profile Mogul Santa Fe CPA 67 posts since
Oct 10, 2007
5. Re: I'm French & willing to open a business: 2 quick questions Nov 28, 2008 4:07 PM
in response to: skidoo

Hello again, Christine,

To clarify a but, you must file a US Tax Return, in the case of an LLC a Form1065. This requires a Tax ID Number which in the case of a business entity is an EIN, it does not matter if yuo have employees or not. Yes you and your partner are not employees of the LLC/Partnership, the net income or loss (we hope not) are passed through to you , without tax, as "self-employed" persons and you pay personal taxes. As French nationals you may be exempted from US Social Security Tax as you are covered by the existing French equivalent. You need to confirm this with the US Social Secuiryt Administration.office in Miami..


You do not get "dividends" from an LLC, although there may be cash distributions from the income of the business. There are possiblities of "Guaranteed Payments' and other benefits that are passed on to you. These are reported to you on a Schedule K-1 of the Form 1065 and are then subject to yuor personal income tax rates after any allowed deductions.

It does get complex, particularly when international borders and trade are concerned.

If I any direct help please don't hesitate to call, virtually all my work is done over the internet.

Regards,
Richard

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Click to view aneita1's profile Start-up aneita1 1 posts since
Dec 1, 2008
6. Re: I'm French & willing to open a business: 2 quick questions Dec 1, 2008 1:14 PM
Hi,
I know of a business where you can talk with them and they will tell you more info on how to start.

send an email to acraigy@gmail.com
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