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We selling in India via e-commerce website. We are in talks with few logistic companies to help us build logistics (warehouse and home delivery) in USA.

Do you think this is legally possible or we have to open a company in USA?

Thanks and regards,

Manuj

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2 Answers

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Yes, it's possible legally.

In my experience, when foreign companies form a separate legal entity in the U.S., they do so for either or both of the following reasons:

  • They want a legal firewall to protect the foreign company from liabilities incurred in the U.S.
  • They are in a market where U.S. customers prefer to buy from U.S. entities.

Please see "Foreign Companies: Form a New Corporation when You Come to the U.S."

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

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thanks that was usefull. So, which state you think is good in terms of online retail sales offering tax benefits? I am told Delaware is good option. – Manuj Dec 16 '10 at 9:35
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Yes if an american order a product from you, and that product is legal in US, there is no reason why he wouldn't have it shipped in the US, or directly from a US fulfillment service you work with.

I do that all the time. I tested both method (I'm outside US too, I'm in Europe).

In the first case, your customer will have to pay import taxes (and shipping from your to him).

In the second case, you will have to pay import taxes (and shipping from you to the fulfillment service). Your customer will pay from the fulfillment warehouse to him only.

Please note that some products must have exportation AND/OR importation certificates.

One obvious product that needs them is weapons ;)

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Ok, great. So, we shall explore the possibilties. But, i might also think of forming a compaany in USA for the obvious advantages. The product line is organic textile, so..... that might be OK. – Manuj Dec 16 '10 at 9:37

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