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GENERAL BUSINESS LAW QUESTIONS

Q1- I want to set up a business, what U.S. state should I choose?

A1- A State where you have some form of contact, i.e. a mailing or physical address, where

you carry out business activities or where you have some form of presence or connection

with the state.


Q2- What type of business entity should I establish?

A2 – The answer to this question depends on (most) of the following factors:


• Are you a U.S. citizen or a foreigner?

• How many principals will the business have?

• Will you be seeking additional investors?

• What kind of business activities will the entity engage in?

• How much of a legal budget have you allocated to the business formation?

• Relevant state law may require certain entities to be formed based on principal’s

professional status.


Q3- Why do I need Corporate By-Laws/Operating Agreement?

A3- The referenced documents govern the internal functions of a business much like the

U.S. Constitution is the principal document for the functioning of the U.S. government.

Generally, this type of document is internal to the organization and is not required to be filed

with the state.


Q4 – How long does it take to set up a business entity?

A4 – This response varies in accordance with relevant state law. Some entities can be

established on the same day the application is filed, however, under regular circumstances

you should expect the process to take at least 6 weeks.


Q5 – What are the fees required to set up an entity?

A5 - This response varies in accordance with relevant state law.


Q6 – Can a foreigner form an entity in the United States?

A6 - Generally, Citizenship and Residency are not required to start a small business in the

United States, however, the S Corporation does not allow nonresident aliens to be

shareholders. There are visas available for foreigners wishing to commence a business in the U.S. Some small business opportunities may allow you to reside in the United States if you qualify for an L-1 or E-2 visa. There main thing to keep in mind, however, is that a foreigner owning a business in the US does not automatically provide the foreigner with work privileges - this means you will need to qualify for an Employment Authorization Document (work visa). It is recommended that you consult with an attorney and an accountant before establishing a U.S. entity due to the recent changes in immigration and tax laws.


Disclaimer: The views provided for herein are general in nature and are the author’s own. No attorney-client relationship is expressed nor shall be implied.

The information provided is intended solely for the personal use of the user who accepts full responsibility for its use and is not, and should not be construed

as an offer, bid or solicitation of any kind. Although precautions to ensure that the content provided is current, accurate, and timely, the information provided is

“as is”. There is no representation, warranty or guarantee of any kind as to, and there shall not be responsibility whatsoever for the accuracy or completeness

of any information contained in and accompanying this communication nor for any consequential, special or any other type of damages.


© 2019 Cecilia Guerra, Esq.

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