rpexplorer
New Member
Our Mexican Corporation requires on-line credit card processing for U.S. customers. Mexico at this time does not offer these capabilities so we have petitioned several U.S. processors to handle our account. In all cases a U.S. tax id is required so we are taking the step of setting up an LLC in Nevada to act as a subsidiary to the Mexican company, The Nevada LLc will have the tax id and its receivables will be equal to its payables (billing from parent Co). The Mexican company has an off-shore bank account in a U.S. bank and also has a U.S. address (PO Box). My question is: is this the proper procedure? What is U.S. tax exposure (subsidiary will be part of Mexican audit trail)? What and how extensive are the reporting requirements to the IRS?