Q: I am opening an e-commerce company in America. Can a non-US entrepreneur accept credit cards and Paypal for internet sales through an American bank ?
Normally, it is not possible for someone who is not a resident (or citizen) of the United States to open a merchant service account with an American commercial bank. The biggest obstacle is that non-citizens do not have an established US credit history. Alternative merchant service companies can substitute for banks. These companies request that non-citizens provide information about their personal and business history as well the nature of the business that they will be conducting. Once a merchant service provider has a strong sense of what the company offers , it is much more likely they will provide a merchant account. Upon request, Inc Plan (USA) can introduce foreign entrepreneurs to alternative payment providers. If you are interested in a merchant service account, we can assist you. Please contact Michael Hartman.
Q: Why do some real estate investors establish a Delaware holding company to acquire investment real estate properties?
Many investors use a Delaware holding company to help purchase real estate because profits earned in Delaware are not subject to corporate income tax as long as the beneficial company owner does not reside or conduct business in Delaware.
Many investors will register an LLC in the state where the property generates income. The LLC is owned by a Delaware holding corporation. The subsidiary can agree to pay the holding company for specific services like property management and finding new tenants. The portion of the income that goes to holding company is not subject to corporate income tax. In states like New York and California, where taxes on real estate are exorbitant, this can help save the beneficial owner money. It is important that the holding company charge reasonable fees for services rendered to the subsidiary. Check with a tax lawyer or accountant to make sure your setup is acceptable to state where the real estate is owned.
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