Has anyone formed entity with foreign partners? How easy is it to manage revenues, bank accounts, sales and taxes with foreign partners?
I want to setup a LLC or LLP with a partner from India or Australia. If we have sales in India, will we pay extra taxes to bring the money back to US. And if we sell services in the US and have to send part of the profits back to our partners in India or Australia is that fairly straight forward or will have tax complications.
We went through this process recently. I posted a summary to this group a while ago.
We setup an India Pvt Limited and a Delaware C-Corp. We are in the process of making the India Pvt Limited a subsidiary of Delaware C-Corp. The Partner(s) are Directors in India Pvt Limited and are shareholders in the US Company. We were told LLC wouldn’t work for this arrangement. Since we hadn’t setup the LLC, we went the C-Corp route.
While the subsidiary relationship is not mandatory, we were recommended to do so by our attorney in India. The other option is to set up a Master Services Agreement between India Pvt Limited and USCo.
Our plan is to raise funds solely through USCo, which led us to this path. Your plan may be different.