Re: [newtech-1] Forming a Company with International Investors

From: John G.
Sent on: Friday, January 11, 2013 10:42 AM
Some suggestions from a non-attorney who works with a lot of foreign firms coming into the US:
If you are accept the non-US residents as investors, you cannot be an S corporation. If the non-residents own 25% or more of the equity, you'll have to file an extra schedule on your corporate tax return detailing your overseas payments. 

If  you're an LLC, then as already mentioned, you're probably going to have to withhold some of their allocated earnings, hand it over to the IRS, then they will have to get US tax numbers and file non-resident US tax returns.

Resident or non-resident, you'll need to (1) work out with these potential investors what they want, clarify what you want, then negotiate a shareholder agreement with an attorney who knows what he/she is doing, and (2) agree in advance what kind of buyout you and they can accept: if you think you'll be able to buy back shares with profits, you're dreaming. As you become more profitable those shares become more valuable, so just try and buy back those shares without paying a hefty premium. 


John P. Gordon President, USA Corporate Services Inc.
Managing-Member, Incbert Insurance Brokerage LLC
19 W. 34th Street Room 1018
New York, NY 10001
Tel: [masked]
[address removed] | www.usa-corporate.com



On Fri, Jan 11, 2013 at 10:23 AM, Miles Rose <[address removed]> wrote:
Find a Lawyer who is familiar with these issues. EB5 visas offer interesting opportunitites for investors.

Find an attorney.




On Jan 11, 2013, at 9:35 AM, Alan Hyman <[address removed]> wrote:

Hello NYTM. 
Happy New year to everyone. I have some questions about forming a company and accepting investment. Here is the good situation to be in: My partners's family overseas wants to invest in our company. What are the different things we could offer them? One idea was to give them a percentage stock of the company. Then as my partner and I make profit we would buy back shares. Also what issues will we find when accepting investment from an overseas investor?  Has anyone been in this situation before? I would love to hear any stories you may have out of your experiences forming companies and accepting investments. Advice?

Are there any reliable resources online we could use to research these questions?

Thank you. 

Best,
Alan Hyman
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