International partnership

[Maru]

Jurisdiction

Texas

Good day!
I have been offered partnership in consulting business by partners living in Europe. Net profit is supposed to be divided between three partners. One in the US, another two are in Europe (have the same bank account). What contracts we have to have for legitimate finance transitions? Thank you in advance for any hints and advice!

 

[army judge]

What contracts we have to have for legitimate finance transitions? Thank you in advance for any hints and advice!

Don't attempt this as an easy DIY effort.

Its not easy, quick, or something any smart laypersons should attempt.

If I were wearing your clothing, I'd consult with at least three lawyers BEFORE agreeing to or signing ANYTHING.

Once I've had my three legal consultations, I'd take my time before signing anything, sending anyone money, or moving forward.

After reviewing everything, I'd engage the services of the attorney I believe best assisted me during my FREE consultation to help me through the process.

However, BEWARE, the contracts will mean very little IF anything in any country outside of the USA.

If you wish NOT to be financially fleeced, avoid spending moola on legal fees, simply don't get involved with people you barely know who are safely ensconced outside of the USA, or even outside the US state where you reside.

 

[adjusterjack]

I have been offered partnership in consulting business by partners living in Europe.

Consulting what?

Who are these people?

How did they find you?

What do you have that they want?

What contracts we have to have for legitimate finance transitions?

Contracts can be meaningless when you have to spend many thousands going across the world to enforce them.

 

[Tax Counsel]

Good day!
I have been offered partnership in consulting business by partners living in Europe. Net profit is supposed to be divided between three partners. One in the US, another two are in Europe (have the same bank account). What contracts we have to have for legitimate finance transitions? Thank you in advance for any hints and advice!

There are a lot of important facts to know before writing up a partnership agreement (or whatever the foundational document is for the type of business organization through which you will operate this business). In what country will the business be organized and what kind of business entity will be used? Where will the business operate? What kind of business, exactly, will you be engaged in? What exactly are the compensation arrangements for the three of you? What is your role going to be?

In addition to a good organization agreement you'll want to get advice from a tax attorney about what set up would work best at keeping your tax obligations as low as possible and to find out exactly what things you have to do. When getting involved in a foreign business enterprise or going into business with non U.S. persons there are typically additional forms you need to file with the IRS and perhaps withholding or other tax obligations too that would not be required if everything and everyone was in the U.S. The failure to comply with these international provisions of the tax code may result in rather high penalties, so you want to be sure you are doing everything you are supposed to do.