Hi neednobby,
After reading your question, I am assuming that you would prefer that
the researcher do the work and figure out the best course of action
rather than list numerous options for you to sift through. Thus, here
is what you need to do, in the order given.
>>> 1) WHICH STATE
(whats the best state to incorporate in [my physical address is in Florida])
Stay with Florida, that's where your merchant accounts will be and
there's really no advantage for you to complicate things by
registering in another state. If you were to register in Delaware,
you'd run the risk that it would be considered a "foreign company" and
you would end up paying more in taxes and fees.
Nevada / Delaware / Florida Corporations Comparison Chart
http://www.form-a-corp.com/NV-DE-FL_choices.php
"A foreign corporation that registers for a certificate of authority
in another state must pay state filing fees for the qualification
filing; these fees are typically more expensive than the cost of
filing for a domestic corporation. Also, foreign qualified
corporations are subject to taxes and annual report fees from both the
state of incorporation and the qualifying state. Thus, the actual
advantage of incorporating in a state with very low initial filing
fees and low corporate income tax is not as great as it appears if
your business must still qualify to do business in its state of
operations.
The definition of "transacting business" depends on the state and the
situation. Consult your attorney to determine how the law applies to
your situation. In general, though, some factors that a state
considers when determining whether a corporation is transacting
business in a state include:
1. Does the corporation have a physical presence in the state?
2. Does the corporation have employees in the state?
3. Does the corporation accept orders in the state?
4. Does the corporation have a bank account in the state?
Note that simply transacting business via mail order or the Internet
typically does not equal transacting business; however, the
determination is made on a case-by-case basis. Again, consult your
attorney for specifics, as this list is not intended to be
comprehensive."
http://www.entrepreneur.com/article/0,4621,287155,00.html
Should My Very Small Business Incorporate in Delaware?
"Your best approach is probably to stay where you are and incorporate
in your home state"
http://www.nolo.com/lawcenter/auntie/questions.cfm/ObjectID/337D5285-8011-4B09-A998089A04E631AE
>>> 2) REGISTER YOUR COMPANY
(whats the best way to register a company in the U.S.A. online
[specifically via a fast reliable online service])
My priority during this research was to choose an online service which:
Is Reliable:
A Better Business Bureau (BBB) member for a minimum of 3 years and has
had no complaints filed against it (whether resolved or not).
Is Fast:
Offers some type of expedited delivery for international customers.
Florida:
Must be able to register a company in Florida.
Price:
Less than $500 (I avoided "cheapies", if it sounded too good to be
true, it probably was)
My Pick:
Agents and Corporations, Inc.
1201 Orange Street, Suite 600 One Commerce Center
Wilmington, DE 19801
Agents and Corporations, Inc.
Complete Incorporation Service ($298.00) includes:
Name Reservation
Articles of Incorporation
Filing Fee
Corporate Minutes ready-for-signature
Stock Certificates
By-laws
Minute Book
Priority Mail
First-calendar-year ($90.00 thereafter) Registered Agent Service
IRS forms
Tax Saving Strategies.
Extra
Fed Ex: International customers pay an additional $75.
Total: $373.00
FORMATION OF LLC:
Our Complete same day LLC Service for $298 includes everything
required to complete the LLC process:
* File and record LLC Certificate of Formation after checking name
availability ($99.00 Economy Service Stops Here)
* No Registered Agent fee the first calendar year and $90 per year thereafter
* Professionally prepared 21-page LLC Operating Agreement with
simple cover letter of instructions on completion (LLC is not
effective without it)
* Form SS-4 (IRS Application for Taxpayer Identification Number)
-- Assistance is available
* Form 8832 (IRS Entity Classification) as to corporation,
partnership or sole proprietor
* Tax and Legal Strategies (Including Forms)
http://www.incnow.com/florida/index.shtml
BBB MEMBERSHIP
Agents and Corporations, Inc.
1201 Orange Street, Suite 600 One Commerce Center
Wilmington, DE 19801
This company has been a member of this Better Business Bureau since
September 2001. This means it supports the Bureau's services to the
public and meets our membership standards.
Based on BBB files, this company has a satisfactory record with the
Bureau. The Bureau has processed no customer complaints on this
company in its three-year reporting period.
http://www.data.bbb.org/scripts/cgiip.exe/WService=wilmington/wilmington/showrpt.html?zid=OLGkGhKfQh
>>> 3) ITIN
(how to get a EIN without a ITIN)
To get a merchant account you need an EIN and to get an EIN you need an ITIN.
Individual Taxpayer Identification Number (ITIN)
What documents are acceptable as proof of identity and foreign status?
"IRS has streamlined the number of documents the agency will accept as
proof of identity to obtain an ITIN. There are now 13 acceptable
documents.
An original, or a certified or notarized copy, of an UNEXPIRED
passport is the only document that is accepted for both identity and
foreign status. If you do not have a passport, you must provide a
combination of current documents that contain expiration dates - we
accept docs issued within 12 months of the application if no
expiration date is normally available. The documents must also show
your name and photograph, and support your claim of foreign status.
IRS will accept certified or notarized copies of a combination (two or
more) of the following documents, in lieu of a passport:
* National identification card (must show photo, name, current
address, date of birth, and expiration date)
* U.S. driver's license
* Civil birth certificate
* Foreign driver's license
* U.S. state identification card
* Foreign voter's registration card
* U.S. military identification card
* Foreign military identification card
* Visa
* U.S. Citizenship and Immigration Services (USCIS) photo identification
* Medical records (dependents - under 14 years old - only)
* School records (dependents and/or students - under 25 years old - only)"
http://www.irs.gov/individuals/article/0,,id=96287,00.html
W-7 Application for IRS Individual Taxpayer Identification Number
Use Form W-7 to apply for an IRS individual taxpayer identification
number (ITIN). An ITIN is a nine-digit number issued by the U.S.
Internal Revenue Service (IRS) to individuals who are required for
U.S. tax purposes to have a U.S. taxpayer identification number but
who do not have, and are not eligible to obtain, a social security
number (SSN).
http://www.irs.gov/pub/irs-pdf/fw7.pdf
>>> 4) EIN
You will need an EIN number in order to open your merchant account.
The package that you receive from Agents and Corporations, Inc. will
include the two application forms that you will need to apply for your
EIN. They will assist you if needed.
* Form SS-4 IRS Application for EIN -- Assistance is available
* Form 8832 IRS Entity Classification for corporation
Form SS-4 [make sure to check the following]
8a* Type of entity (check only one)
Corporation (enter form number to be filed) : Form 8832
9* Reason for applying (check only one)
Banking purpose (specify purpose) : Merchant Account
https://sa.www4.irs.gov/sa_vign/newFormSS4.do
Instructions form SS-4
http://www.irs.gov/pub/irs-pdf/iss4.pdf
>>> 5) MERCHANT ACCOUNT AND BANK ACCOUNT
(how to get a bank account and merchant account for online transactions...)
Once you have the EIN number, it will be time to apply for your
merchant account. I suggest applying where you already have your
personal accounts, both Chase and BoA offer merchant services.
--------- BoA
Bank of America
Need a merchant account?
"Complete our referral form and a merchant services representative
will get back to you soon."
http://www.bankofamerica.com/merchantservices/index.cfm?template=merch_ic_ov.cfm
Bank of America:
http://www.bankofamerica.com/merchantservices/index.cfm?template=merch_online_ov.cfm
--------- Chase
Chase Bank's Merchant Services:
http://www.chase.com/cm/cs?pagename=Chase/Href&urlname=chase/sb/creditcards/processing/payment
--------- another possibility
WELLS FARGO BANK
Merchant Card Processing
https://www.wellsfargo.com/biz/products/merchant/merchant
Wells Fargo
Internet Merchant Account Benefits
http://www.wellsfargosecure.com/IMA_Benefits.htm
-- info
Merchant account-A guide to understanding the basics
http://www.fastpcnet.net/merchant.html
>>> 6) TAX
(Do i need to then pay tax in any state?(i live outside the USA and
wont be in the USA for more than 8weeks a year)?
If all of your services are performed outside the U.S., as a
nonresident alien, your income will not be subject to U.S. income tax.
But you must file Form 8832 (see EIN above) to inform the IRS that
your company is a corporation rather than a sole proprietor in order
to enjoy the US tax free benefit of being a nonresident alien.
Single member LLCs.
"Generally, when an, LLC has only one member, the fact that it is an
LLC is ignored or ?disregarded? for the purpose of filing a federal
tax return. Treasury Regulations Section 301.7701-1,-2,-3"
"If you prefer to file as a corporation instead of as a ?disregarded
entity? Form 8832 must be submitted."
http://www.irs.gov/pub/irs-pdf/p3402.pdf
FORM 8832: Entity Classification Election:
"...a business entity with a single member can choose to be classified
as either an association taxable as a corporation or disregarded as an
entity separate from its owner."
Disregarded entity:
"A disregarded entity is an eligible entity that is treated as an
entity that is not separate from its single owner. Its separate
existence will be ignored for Federal tax purposes unless it elects
corporate tax treatment."
http://www.irs.gov/pub/irs-pdf/f8832.pdf
>>> 7) SSN?
No, as a non-resident alien, you will need the ITIN.
>>> Additional Links of Interest:
SCORE
http://www.score.org/
US Small Business Administration (SBA):
http://www.sba.gov/
I hope this is just what you were hoping for as I have worked hard on
it for several days. Given that there are so many variables regarding
your personal situation that are impossible for me to be aware of, I
can't guarantee the road will be perfectly smooth, but hopefully I've
been able to get you off to a good start and any bumps along the way
will be easy to climb over. If you have any questions, please post a
clarification request and wait for me to respond before closing/rating
my answer.
Thank you,
hummer
Some of the Google search terms used but I mostly followed links and
used my own bookmarks:
llc florida
register llc florida
florida business llc
international merchant accounts
chase bank merchant accounts
bank of american merchant accounts
itin irs
ein irs |
