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Cold Calling That Might -- Just Might -- Work
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Anyone who's ever sold anything online — either directly from a website or on one of the major e-commerce platforms such as eBay or Amazon — knows that often the most unpleasant part of the process is packing, shipping and fulfilling …Read more.
When Can Landlords ‘Unreasonably Withhold' Consent to Lease Transfers?
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What to Do When an Inventor Wants His Technology Back
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Starting an Online Business with a Temporary Visa (or No Visa)"I have been living in the United States for several years now on a temporary visa. Last year, I set up a limited liability company (LLC) for an online retail business. I understand that I do not have to be a U.S. citizen to own an LLC, but my attorney is telling me that I am not legally permitted to work here and so cannot do anything on behalf of my business. Is that correct? I have applied for a 'green card' so that I can stay here permanently, but it may be a long time before I get it." While you do have to be a U.S. citizen or "green card" holder to own shares of stock in a subchapter S corporation, you do not need to be a U.S. citizen or resident to own shares in a regular or C corporation, or an ownership interest (called a "membership interest") in a limited liability company. However, that does not mean you have the legal right to enter into contracts or otherwise conduct business in the U.S. on behalf of your company. You should talk to your immigration attorney about this. There are several different types of temporary visa the U.S. grants — some allow you to work in this country while you are here, some allow you to work in this country but with certain restrictions (such as the number of hours each week you can work, or the types of jobs you can hold) and some do not allow you to work at all. You will need to follow the rules that apply to your specific visa type. Since you have applied for a "green card," you should be able to obtain a "work authorization," which would allow you to work temporarily for your company until your "green card" application is either approved or finally rejected. This "work authorization" generally issues 90 to 180 days after your "green card" application is filed, but you may need to apply separately for it so be sure to talk to your immigration attorney about this. If it is not possible for you to get a "work authorization," then talk to your immigration attorney and ask if the following approach would be acceptable: You would find a relative or close friend who is a U.S. citizen or "green card" holder and ask him or her to serve temporarily as the "president" of your LLC until you receive your "green card." The president would sign all documents and correspondence on behalf of your LLC, and would be the "face" of your LLC to the outside world. The president would serve as a 1099 independent contractor, not a W-2 employee. The president would not receive a salary, but instead would receive a percentage of your profits each month, quarter, or year. You would indemnify the president in case he or she is sued because of something the LLC does or doesn't do; and you would terminate the president as soon as you receive your "green card." "I live in Mexico and would like to make a little extra money by drop-shipping goods to people in the United States.
It is difficult to answer this question without knowing more about the legal relationship between you and the Texas fulfillment company, but I will assume that you still legally hold title to the goods that are stored there, and that the fulfillment company merely holds them "on consignment" for you, as that is the way these companies normally work. Since the fulfillment company is selling the goods only as your agent (you are legally the "seller" your buyers are buying from), then your drop-shipper is correct in insisting you have a federal tax ID number because he or she will have to send you (not your fulfillment company) a Form 1099 at the end of each calendar year and withhold taxes on the amounts he or she remits to you. You do not have to be a U.S. resident to obtain a federal tax ID number — you would apply for this on IRS Form SS-4 (www.irs.gov/pub/irs-pdf/fss4.pdf) just like anyone else. For more general information about the ITIN and the rules that apply for foreign companies importing goods into the US, you should download IRS Publication 515, "Withholding of Tax on Nonresident Aliens and Foreign Entities," at www.irs.gov/publications/p515/ar02.html. Cliff Ennico (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM
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