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We have setup a partnership firm having 2 partners in India. We are a software firm and having client base mainly in US, so we want to show our presence in US by putting our US

address on our website. We will be just selling online software service. We just want to show our presence in US, we wont be having any employees there. Everything will be

handled from India. I have few questions though:

  1. If we just put the dummy US address say address of my friend is US without registering the company there, can anyone sue us for this?

  2. Do we need to register our company in US also?

  3. If we register in US, How taxation will be done? Will we have to pay tax in both India and US? Should we go with LLC registration? In which state should we register?

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It is unethical to pretend to be in the US when you are not. I would be open and honest about who you are and what you do and win work based on your skill, not pretending to be somewhere you aren't. – Joel Friedlaender Jun 19 '12 at 8:16
Your statement "want to show a US presence" implies more than just a dummy address without registering a company. Since your existing customers you have (and they presumably know) you're operating from India, why is there a need for US presence…unless you're seeking new clients? In either case, best to be transparent than to risk being sued for misrepresentation. – Global nomad Jun 19 '12 at 14:52

2 Answers

up vote 1 down vote

I am not an expert to pass on any legal suggestion about registering an LLC company in US and what will be the exact taxation process. But want to share some thoughts below.

  • At first; I think it is illegal and un-ethical as well to stay outside of US and showing a dummy contact address from there.
  • I think you will have to get your company registered in US by following the all the rules and procedures as stated by US Govt.
  • If you have already registered your company in Inida and want to get it registered in US as well then technical and logically; you will be paying taxes on both sides. But i think you may get some exemption in the tax payment in India if you provide a proof of the tax being payed already in USA.

But above all, wait for some experts to jump in your thread and they may give you more professional opinions.

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up vote 1 down vote

I've been talking with one of my foreign clients, which is not yet ready to form a corporate subsidiary in the U.S., about similar issues.

It strikes me that as a first, toe-in-the-water step, a foreign company could obtain a U.S. mailing address by signing up with a provider of virtual office space, such as Regus. There can be a legitimate use for for such an address, i.e., to receive mail from the Postal Service, presumably for forwarding to the foreign headquarters. Indeed, the virtual office could receive faxes and phone calls, too.

While different states have different requirements concerning registration by foreign entities, I would not expect any of them to require such registration merely because a virtual office address is being used.

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

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myusacorporation.com/business-resources/us-mailing-address.html If we go with this service will it be all legal and avoid the double taxation issue? We just need to show US address as our business address on our website. – user18025 May 20 '12 at 18:01

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