Welcome to the Community and good luck.
In business you need both an Accountant and a Lawyer.
I suggest you retain a Lawyer and ask him or her your questions.
Again Good luck, LUCKIEST
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First, as Luckiest has mentioned you should consult with an attorney for advice as to how best to setup your company because each situation is different.
Generally speaking however, you can form either a Wyoming C Corporation or LLC without being a US citizen. Which type or entity you choose depends on several factors. I will give you some basic information regarding each type of entity.
If you form a C Corporation otherwise known as a General Corporation the shareholders who are the owners of the company can be other entities such as a another corporation, a LLC, trust or natural persons. A Corporation is managed by a board of directors and run by its officers (President, Secretary and Treasurer). Directors and officers must be natural persons but there is no requirement that either the shareholders, directors or officers be US citizens.
A LLC is owned by members who can be other entities such as a another corporation, a LLC, trust or natural persons and is run by managers who can also be other entities such as a another corporation, a LLC, trust or natural persons. The LLC can also be managed by its members. Neither the members or managers are required to be US citizens.
If you form a Corporation you will pay a corporate tax and the shareholders will pay taxes based on the amount of profit they receive as owners. In addition a corporation must pay reasonable salaries to its employees and must then pay taxes on payroll including social security and medicare.
A LLC on the other hand does not pay any taxes. All profits and losses are passed through to its owners (Members).
If you form a US entity an Indian Company can be the owner (shareholder if it is a Corporation or Member if it is a LLC) which would make the US entity a subsidiary.
I hope this information gives you something to think about and wish you the best of luck.
I am on H1-B Visa and work for a company in US. I understand that I can only
open a company here but cannot work for it since I am already working
for the company which has sponsored my H1-B.
I don't want to involve any unknown person in my company.
I would prefer to do it with my brothers who reside in India. So
now if I want to open a company, may be a C Corportation or a LLC, can
I do this legally- I want to have me and my brother (who is not a US
Citizen or a Green Card Holder but is an Indian Citizen) to run the
company. I can be a sleeping partner, who is not working at all for the
company and all the work is done by my brother who is the partner in
the company I formed. Is that legal?
It is an E-Commerce business with no business activity happening on US soil.
Further can I share the profit or loss for the company? If I make
profit for the company, I intend to pay my taxes to the IRS and if I
have a loss, I would want to write-off my losses too.
Is there any other way to achieve the same? What does it take, in cost, to open a subsidiary of an Indian Company in USA?
Which would turn out to be cheapest on taxes:
1. A company formed by me with my brother as a partner
2. A subsidiary of the Indian company in USA
3. A company formed between me and a person who has a green card or is a citizen.
Thank you for your help!