B1 / B2 Visitor Opening a C- Corp with a GC holder

N

nyc101

Registered Users (C)
Hi:

Need serious advice... I am from India and had started a company in INDIA serving customers in the USA back in April 2004. The business did very well and all my current customers pay me via via transfer to INDIA.

I wanted to expand my business and needed a bank account in the USA and many prospects were hesitant to wire funds to India.

I consulted a CPA and he suggested that I get hold of a Green Card holder and open a C-corp with her, that will help open the bank account.

The CPA proposed since I am on B1 it is very much LEGAL to be a owner of the company and work from INDIA? So he said that I be the PRESIDENT 95% stake and let the GC holder be the VICE president with 5% stake.
Question 1: Is it legal to own a business on a B1 business visa and go back to my country to run the business. The sole purpose is to Open a bank account to let customers pay in the local country.

Since the GC holder is not a very close friend I asked the CPA how do I protect my interest against any fraud or deceitful practice. The CPA suggested that I use the GC holders SSN to open the account but I be the authorized signotory of the account and that I have full control on the account. He suggested that I do not allow the GC holder to sign any cheques etc. or share any internet banking paswords.

I am paying 2% of total turnover to the GC holder for this favor as consulting fees. I will be leaving the country soon and will only come may be once year if need be for taxation purpose.

Please suggest if this is legal to own a company on B1/B2 visa as I would be running it from my home country?

The CPA also suggested once the Bank account is opened, I can buy the rest 5% state and be the 100% owner. Is thsi correct??
 
One more thing the account opened in the USA will only be used to accept payments and make tranfrs to INDIA, apart from that I might just make a few payments via the debit card for the USA international phone that I will take from here to INDIA.

Just want to make sure everythng is legal and is ok in the long run?
 
Hi Joe:

Thanks for this infomation, it is really helpful.

After some serious discusions with several people, I have along with a GC holder registered a company with 95% stake in it and 5% lies with the GC holder. The 5% partner will be holding the bank accounts in her name and she will be going the day to day business. So I am just a shareholder which is 100% legal, am i correct?

Also, since the entire control is with the partner, is there a MOU that I can sign between me and my partner so that my interest is protected.?? Where could I find a copy of such MOU??

Help on the above 2 questions would again be highly appreciated.

Best
Raj
 
why do you want to create a company in US and confuse everybody.
Just get your indian company business corporation paper and have a attorney/ accountant to open a business account in any US bank on your indian company name.
It is completely legal and right way to do it and it won't confuse your customer too as thet're payinf the same company.
Just think like how company have money in swiss banks but how many have swiss businesses. You do not need to register or have a business in US to open a business account in US bank.

In order to faciliate the transcation and transfers of money, you could either make any of your us friend or relative a officer of your company or give him power of attorney for maintaining the business account.
 
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