Post-formation Issues for Foreign Companies Coming to the U.S.
Forming a corporation for a foreign client is a lot like forming a corporation for a domestic client. (See Foreign Companies: Form a Corporation when You Come to the U.S.) Having gone through the process dozens of times, however, I realize that there are three important post-formation issues that foreign clients often need help addressing:
- Obtaining an Employer Identification Number if no principal officer has s U.S. social security number. – This process is described in Foreign Company Alert: Obtaining an EIN may be your Biggest Challenge in the U.S.
- Opening a bank account if the client does not yet have personnel in the U.S. – See How can a Foreigner Open a Bank Account in the U.S.?
- Obtaining a visa to work in the U.S. – Realistic visa options are discussed in Visa Basics for Foreign Entrepreneurs Coming to the U.S.
Once you form your corporation and take care of these post-formation issues, you will be ready to conduct business in the U.S.
Related post: U.S. Merchant Accounts for Foreign Companies – A Problem with Workarounds
Dana H. Shultz, Attorney at Law +1 510-547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
vARA
9/21/2012 | 7:34 pm Permalink
IF ACCOUNTANT OPENS BANK ACCOUNT,
Can he open an account for a company without having the authority to access it?
Can the foreign client personnel get authority to do transactions with this account?
If accountant needs to be authorized personnel to access the account (if this is rule to open an account for client) then it will be security issue.
Can you please elaborate on this?
Dana
9/21/2012 | 7:46 pm Permalink
The accountant must have access to the account – thus must be trusted. Other individuals may have access, too.
Dorothy Dalton
8/24/2013 | 7:14 am Permalink
I am finding your posts very helpful! Thank you. Can an international company ( UK Limited company) open an account in the name of the company in the US. We are finding some banks are reluctant to do this and want it to be in the name of the US VP with the annotation
“doing business on behalf of…” Is this common? In the UK it would not be normal to have the name of a company officer on a corporate bank account. I would be grateful for you advice.
dhshultz
8/24/2013 | 7:50 am Permalink
A US bank will open an account only for an individual or entity located in the US – thus the awkward reference to the US officer on behalf of the UK Ltd. What you want to accomplish can take place most readily by creating a US affiliate or subsidiary of the UK Ltd. That US entity then can obtain an EIN and open a bank account, with the current US VP being an officer of, and signatory for, the US entity.
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