There are several different formations of companies:
-A branch of an existent foreign company
-A subsidiary company
-A separate company
Each form has its advantages and disadvantages both in taxation and in owner’s immigration status. A separate company most often is affiliated with its foreign company through ownership.
A company is registered at a state level.
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Each state has its own laws, so interested parties should research the state where the company will be established. If a company is registered in one state and the business is run in another state(s), then the company should be registered and obtain a business permit in each respective state, and in many cases in each city and/or municipality.
Traditionally there are several forms of running business: Partnership’s (private partnerships), Corporations (types C and S) and LLC’s (limited liability company’s). Each form has potential advantages and disadvantages. Not all types of companies are suited to be run by foreign executives. When selecting the company type, the interested party should consider the immigration rules, regulations, refunding and income repatriation associated with each type. Anyone can open business; yet, the right to run the business is a separate issue therefore, selecting the type of business structure is taken by each individual company, involving an attorney and tax consultants.
In Florida, the most common type of business is an LLC (Limited Liability Company) which is considered by many as a hybrid of a Partnership (taxation of an income is the same as in Partnership) and a Corporation (limited property liability).
