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confused about llc and incorp

Posted on 8/5/13 at 2:32 pm
Posted by Tiger Attorney
New Orleans
Member since Oct 2007
19660 posts
Posted on 8/5/13 at 2:32 pm
I have an out of country client....they want to do an llc in delaware that they own to do business in texas....can a foreign company own this?

This not my area of knowledge
Posted by GreenTrout
Toledo Bend
Member since Jul 2013
1010 posts
Posted on 8/5/13 at 2:36 pm to
We seen you the first time big fella
Posted by Kingwood Tiger
Katy, TX
Member since Jul 2005
14162 posts
Posted on 8/5/13 at 2:37 pm to
I believe they can, I would contact the Secretary of State office in Delaware.

Once they file, I believe they will also have to file with the state of Texas as a foreign entity doing business in the state.
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 8/5/13 at 3:12 pm to
Foreigners can have ownership interests in U.S. businesses. In most states there is nothing to prevent direct ownership. I have set up several LLCs for real estate investors. There are usually no problems with formation of the entity. The complications come from complying with the tax laws, as there may be requirements to withhold income taxes from any distributions to foreign owners. You will have to get an individual taxpayer identification number (ITIN) for foreign owner(s). The rates of withholding will be dependent on any treaty agreements.

If you can form an entity in Delaware, and I'm not aware of any issues that would prevent it, then your Delaware entity can register with the Texas Secretary of State as a foreign business entity and conduct business in Texas.
Posted by Tiger Attorney
New Orleans
Member since Oct 2007
19660 posts
Posted on 8/5/13 at 11:39 pm to
Thank you poodle and King
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