Making money online

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.

Nothing? 😢

Maybe we’re just missing the point here.
If you already have an online business running, why on earth would you go through the headache of opening yet another one here in the States?
And if you've been operating for a while now, I'm assuming this isn't some shady fly-by-night operation.
You've got a track record, people can look you up online... it's not like you're invisible.

Here in the US, we buy pretty much everything online—all the time. We don't even blink when we're ordering from companies that don't have a single office or branch in the States. (We'll happily buy from China, the EU, whatever...)

Some companies just register themselves stateside once they hit a certain sales threshold, mostly just to handle the sales tax side of things, and that's really it.
Using PayPal or any standard credit card works perfectly fine.

Honestly? My best advice is to find yourself a solid American accountant. Once you give them the gritty details—like where you're actually based and all that—they'll be able to give you the real, precise answer you need.

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 👍

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.

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?

Personally, using PayPal gives me a sense of security. I’ve walked away from carts several times just because PayPal wasn't an option at checkout. Honestly, I don't care how high the transaction fees are—it's worth it. It builds your reputation and guarantees peace of mind for the customer.

It doesn't necessarily mean people will trust a local startup more. I’d much rather book a hotel through Expedia or a similar site—even if I have zero clue where the company is based—than book through some brand new XYZ Corp. out of a small town in the Midwest. Sure, once you gain some traction, maybe I'll consider you, but I still don't get why you'd intentionally take a loss for a year in the US when you could just run an established company from abroad to dodge those fees.

Regarding your idea about forming an association—I wouldn't recommend that for this line of work. Since you're an American citizen, your best bet would be setting up an LLC here in the States. But, like my colleague mentioned, you should really find a solid CPA in the US who can walk you through the fine print.

As for advertising restrictions, I honestly have no idea. There shouldn't be any. You might want to check with your marketing agency to see if they handle international markets and what their process looks like—or just partner with some American companies and ask them how they handle it.

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.

Dana Clark3 said: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.

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.

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. 😢

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?