6 posts shown.
Nancy Green7 said:I’m in the exact same boat, except I’m an EU citizen with a business based here in the States.
If you think setting up a company in America is going to save you money, you're dead wrong. It should be the last thing on your list. Transaction costs are basically identical regardless of where your business is registered. Even if you have a local US firm, you’re still stuck paying payment processors like PayPal or 2Checkout—those percentages and fees aren't going anywhere. Plus, if you go the domestic route, you’re just adding more headaches: tax compliance, accounting, payroll, office space... it adds up fast.
When it comes to online shopping in the US, it honestly doesn't matter if the company is domestic or foreign. It’s 2024, not 2004; people trust online transactions now.
As for trying to operate through an association? I have no idea how you think that’ll work. To be blunt, from a customer's perspective, that looks way sketchier than buying from a legitimate company.
My advice: don't make your life harder than it needs to be. Just translate the site into English and call it a day. You can grab a .com domain if you want, and put that extra cash into marketing instead. I don't know what kind of advertising restrictions you're worried about, but you can pretty much do whatever you want with a foreign entity.
So, you're saying I can freely advertise an international company—meaning their actual products—through newspapers or by renting billboard space?
ruggedmaker2 said:Look, I don't know exactly what kind of fees PayPal is hitting you with, but it can't possibly be more expensive than all those hidden taxes and "administrative fees" you'll run into once you register a business here (honestly, we pay them and half the time we don't even know what for 😵 ), plus you've got bank fees, an accountant's bill, and the cost of all those digital certificates needed to actually operate.
My advice? Put that money into solid marketing instead. Get active on social media and just watch how things go for a while. Then, after you see if there's actually any traction, decide if it makes sense to officially open a shop in the US. You might find that just registering for sales tax purposes is enough once you hit a certain revenue threshold.
There is a way to open non-resident accounts at certain banks, but I don't deal with that side of things personally, so I don't know the specific hoops you'd have to jump through.
Maybe someone here who actually knows the ins and outs of international banking can weigh in.
The issue with PayPal is that they take a percentage of the total transaction amount. In America, regardless of the tax rate, they only tax your actual profit. Granted, those fixed overhead costs complicate the math, but I believe they could be covered.
For example, the item I am selling is realistically worth $100, but I sell it for $104. Once you factor in the PayPal fee plus currency conversion costs... I find myself operating at a loss. 😢
Bradley Gray said:Instead of dumping all your capital into setting up a business in America, you should probably just put that money toward marketing to the US market. People decide what to buy based on solid reviews, a clean website, and fair pricing—they really don't care where your headquarters is located. Like my colleague mentioned above, we Americans shop online without a second thought. I'm not sure how international processing works in your home country or what kind of transaction fees you'd be hitting, but you likely won't save a dime by registering a company in the States.
Good luck 👍
Thank you!
Since you brought up marketing, are there any specific legal restrictions regarding advertising for foreign companies within the US?
My apologies if I wasn't clear before.
I realize that online payment processing is seamless enough, but my preference is to have clients pay into an American business account, simply because it's more cost-effective. PayPal takes a significant cut, and the banks aren't much better. That is why establishing a US-based company is essential for me.
Furthermore, I believe people tend to place much more trust in a local domestic company than they do in some foreign entity from a developing nation.
Hello everyone.
I am an American citizen, though I have lived abroad (outside the EU) for many years now. I run a successful business here—an online service for global hotel bookings and flight reservations.
I would like to expand my operations into the US, but I have some concerns regarding how to ensure everything remains fully compliant with local laws, so I am seeking your advice.
I am unsure which business structure would be most appropriate for this type of venture. Should I consider a sole proprietorship, an LLC, or perhaps a non-profit organization? In the case of a non-profit, could revenue be structured as membership fees or something similar, and how could I legally access those funds given that non-profits are meant to be non-profit entities? I am prepared to operate without taking any profit for the first year or two while I establish the business.
Aside from a non-profit, the overhead costs for other structures seem prohibitively high, which would simply accumulate losses in the early stages. In this industry, consumer trust is paramount, and building that reputation takes time. Therefore, I want to start with minimal expenses, with the intention of paying whatever is necessary once things stabilize.
Is it possible to conduct business in the US using my foreign corporation and open an account at JPMorgan Chase?
PS: Many people ask why I bother establishing a presence in the US at all, or why customers don't just send money to my overseas account. There are two reasons. 1. International transfer fees make the transaction unprofitable. 2. No rational person would purchase an airline ticket through a suspicious-looking foreign website.
PS2: Please excuse what may seem like overly general questions. I have lived outside the US for about ten years, visiting only once every two or three years, so I am not entirely well-versed in the specific laws and regulations. I have searched for answers online, but the information I find is often incomplete or contradictory...
Thank you in advance for your assistance.