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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4411
Experience:  35 years tax experience, including four years at a Big 4 firm.
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Was planning to set up a consulting/training business with a

Customer Question

was planning to set up a consulting/training business with a friend of mine based out of China but a citizen of Canada. We'll initially be pursuing clients in the U.S. (as I think that's the easiest market to hit first), we'll certainly be seeking to get customers globally.
I was wondering where to set up the company?
Could you please tell which of the following options work best for us?
A) Register the company in the U.S.
B) Register the company in HK, and invoice from HK
C) Register the head office in HK, then register a subsidiary in the U.S
Submitted: 10 months ago.
Category: Tax
Expert:  PDtax replied 10 months ago.

Hi from Just Answer. I'mCustomer Site management asked me to assist.

If you are offering US services, it's best to set up a US sited entity to house the business. For a number of reasons.

In addition to the ease of tax compliance (no cross border issues), you get the sales benefit of US domicile and support address. If you need any personal contact with US customers, you will benefit from US domicile.

If you are strictly online, offering virtual services, you might locate differently, depending on your plans. I suggest an operating entity in every country you enter. Here's why:

I don't know anything about the services you are offering. If you have any risk of litigation, using a discrete entity (think Newco US, Newco HK, Canada Newco, etc.) limits risk and allows for separate profit centers. Appropriate if you are offering country-specific services or hiring personnel in each country).

I hope that offers the insight you were looking for. I suggest a review of your plan with an international tax accounting firm to review your staffing needs, and the possibility of considering your plan with more information than you offered herein.

Thanks for using Just Answer. Please rate my assistance with positive feedback. I'mCustomer