E-commerce, HK + US LLC

[Gnarlygnar]

Hi All,

I am establishing my e-commerce business and need some guidance regarding the structuring of my business.

I intend to use an already registered Hong Kong Limited company as the exclusive owner of a US LLC, which will serve as the front company. Our inventory will be sourced from the US, while we anticipate that the majority of our sales will occur in Hong Kong, alongside a segment of sales through Amazon US.

A couple of questions of mine that would greatly appreciate your insights:

1. Considering my plans, which US state would be the most advantageous for registering the LLC? Additionally, I might be relocating to California after obtaining my US green card. Would this relocation impact my business setup in any significant way?
2. The Hong Kong company is owned by a close relative of mine who is a resident of the People's Republic of China. In this context, are there any tax benefits to this arrangement? Furthermore, what would be the most effective method for distributing profits to myself under this structure?

 

[daniels27]

Probably not a good idea unless you like to pay for audits. Check BVI which is normally used by Chinese these days. It will save you the audit.

For US, check WY, NM, NV, DE in that order. WY and NM are cheap but M has state taxes.

For you. If you have a green card it does not really matter anymore as you will always pay US taxes. Just open another LLC and invoice the other company.

For the mainlander, please just let him handle it. I would not want to get involved.