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foreign company

Discussion in 'Business & Corporate Matters' started by jorlan22, Jan 5, 2021.

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  1. jorlan22

    jorlan22 Law Topic Starter New Member

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    are you allowed to legally start a company in another country to get by restrictive laws of the US? and if you do decide to make a company and bank account outside of the US are you allowed to move the money back to the US as long so it is appropriately taxed?
     
  2. Tax Counsel

    Tax Counsel Well-Known Member

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    The answer to that depends very much on exactly what you plan to do and what US restrictions you are seeking to avoid.

    You certainly may bring the money back to the U.S. However, youwill likely have reporting obligations with respect the foreign company and any foreign financial assets in which you have an interest (like a foreign bank account). Note, too, that depending on the details the income from the company may end up taxed in the US even before you bring the money back to the US.
     
  3. jorlan22

    jorlan22 Law Topic Starter New Member

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    in this case it is software that interacts with another software as an addon, in the US these software companies can bully you with c&d even if you aren't infringing on any copyright because they know that you wont have the money to fight them in court. though most of the companies outside of the US that make software like this never run into this issue (I'm guessing they arent bound by the same laws). would this be considered illegal?
     
  4. Zigner

    Zigner Well-Known Member

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    In other words, you want to violate the terms by which "another software" allows you to use it. You aren't supposed to do that, no matter what country you are in.
     
  5. zddoodah

    zddoodah Well-Known Member

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    Whether I am "allowed to legally start a company in another country" rather obviously depends the laws of that unidentified country. Whether starting a company in some other country will allow me "to get by restrictive laws of the US" obviously depends on what those unidentified laws are, what sort of business my company conducts and what actions I and my company take to "get by" those laws.

    Yes.

    This story doesn't jibe with what you wrote in your initial post. Here, you're not talking about circumventing any laws. Rather, you're talking about basing a company outside the U.S. in order to make it more difficult and expensive for a U.S.-based company who has a grievance to take legal action against you.

    Before you go to the effort and expense of organizing a business entity outside the U.S., something which may backfire on you for any number of reasons, I suggest you confer with an attorney.
     
  6. Tax Counsel

    Tax Counsel Well-Known Member

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    The use of a foreign company likely wouldn't help you here. If the software firm that objects to add-on is sending you a cease and desist letter that suggests that the company believies either you are violating some intellectual property right of the company (and that may include rights other than just copyright) and/or that you are violating the software terms of use. Either way, whether you do that through a US business or a foreign one the company will still pursue the same legal remedies. A foreign company has no more right to violate the rights of another firm than a domestic one does.

    And forming a foreign entity to do business in the U.S. comes with a whole host of additional issues for you, some of which, as zddoodah noted, could backfire on you. I agree with his suggestion that you see a business attorney to discuss what your add-on does and what you want to do to get advice on how to pursue your business without violating the rights of others and that won't cause you to encounter legal or other problems.
     
  7. justblue

    justblue Well-Known Member

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    xyz spam reported. ;)
     

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