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Old 05-30-2013, 11:44 AM
 
686 posts, read 1,763,761 times
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I will answer in two parts, with each part addressing a different aspect:

First, none of what I write here is legal/tax/accounting advice. Please consult an appropriate professional for authentic advice.

I assume you have verified that you satisfy all the requirements of E-2 visa, including that the $50K capital meets the USCIS's definition of "substantial investment".

The terms of E-2 visa does not gel with your "planning on staying in the US for the rest of my life", because under Period of Stay, USCIS says (the bold formatting is mine):

Quote:
Qualified treaty investors and employees will be allowed a maximum initial stay of two years. Requests for extension of stay may be granted in increments of up to two years each. There is no maximum limit to the number of extensions an E-2 nonimmigrant may be granted. All E-2 nonimmigrants, however, must maintain an intention to depart the United States when their status expires or is terminated.
So, if you want to stay in the US forever, either you need to perpetually renew your E-2 status (which is a pain) or you need to make sure the E-2 visa is a dual intent visa (such as an L1 or an H1 visa) which allows you to apply for permanent-residence status after you enter the US on an E-2 visa.

Given that you are a Swedish national, you might be able to petition and quickly obtain (guessing less than a year) approval for permanent resident status in US even while you are in Sweden. This is possible because US permanent residence program has a diversity requirement and not many Swedish nationals petition to become US residents.
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Old 05-30-2013, 12:24 PM
 
686 posts, read 1,763,761 times
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Part two:

You have an obligation to meet two different sets of requirements for businesses. The USCIS's requirements pertain to the E-2 visa. I am not familiar with their requirements, but I don't believe USCIS cares if your investment and residence are in different states. However, if they require you to have a physical office, you need to have it. If your argument is that yours is a virtual business, it then begs the question why you need to be physically in the US to run a virtual business. Anyone anywhere in the world is free to run a US business as long as that business follows US laws, which is largely about taxation.

So, please figure out the E-2 requirements in consultation with the USCIS and an immigration attorney.

The second set of requirements relates to taxation, both federal (IRS) and state. Clearly, you have selected the states because they have little or no state income taxes. Delaware has a small gross receipts tax. Let me also add Texas to your mix, because Texas has a small franchise tax that generally works out to be lower than Delaware's.

Here is the important bit: USCIS might need an E-2 investor to invest in an incorporated business, but the tax man does not. You can conduct any business in any state, with or without incorporation, regardless of the state you are resident in. However, any state you live in will want to tax your income regardless of where your business is. Exceptions are tax treaties between states, but they only makes sure you have paid the higher tax between two states.

For example, a California resident will pay California income tax on income from business in Wyoming or Nevada. If you have a Delaware or a Texas business, California will give you a credit equal to the amount you have paid to Delaware. That is, as California resident, you will pay at least the California tax. See the California tax form.

On incorporated and unincorporated business: You can do business as yourself or under a fictitious name either by yourself or in partnership. If you choose this route, you (and the partners) accept all liability arising from the business. Your share of the business income is your personal income and it gets reported as such to both the IRS and to the state where the business is conducted. This income will also become your personal income for reporting to the state where you live.

You can get liability protection by incorporating your business in a state. Incorporation may be in the form of a Limited Liability Company/Partnership (LLC/P), or an S-Corporation, or a C-Corporation. Income from an LLC/P or an S-Corporation is treated like income from an unincorporated business except you have liability protection under the laws of the state in which the business is incorporated. So, California will tax you for the income from your Wyoming/Nevada LLC.

A C-corporation's income is taxed at the business level at corporate rates, which are generally higher than rates for individual income. A C-corporation does not have to distribute profits (after paying corporate tax), but any profit it distributes to its shareholders becomes individual dividend income to the shareholder and the shareholder is taxed on that dividend income. So, California will tax the dividend you receive from your Wyoming/Nevada/Delaware/Texas C-corporation.
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Old 05-30-2013, 02:12 PM
 
Location: TOVCCA
8,452 posts, read 14,998,391 times
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Tax evasion: This is an intentional violation of tax laws. It is a broad category, encompassing any cheating of the government in taxes. Tax evasion is a FELONY and a very serious crime. A conviction for tax evasion can carry with it up to a five-year prison sentence and/or fines up to $100,000.

Tax Evasion (Encyclopedia of Everyday Law) Study Guide & Homework Help - Reference - eNotes.com

Tax evasion in excess of $10,000. is a deportable offense and will bar you from citizenship:

http://trac.syr.edu/immigration/reports/155/
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Old 05-30-2013, 02:20 PM
 
686 posts, read 1,763,761 times
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Quote:
Originally Posted by nightlysparrow View Post
Tax evasion: This is an intentional violation of tax laws. It is a broad category, encompassing any cheating of the government in taxes. Tax evasion is a FELONY and a very serious crime. A conviction for tax evasion can carry with it up to a five-year prison sentence and/or fines up to $100,000.

Tax Evasion (Encyclopedia of Everyday Law) Study Guide & Homework Help - Reference - eNotes.com

Tax evasion in excess of $10,000. is a deportable offense and will bar you from citizenship:

http://trac.syr.edu/immigration/reports/155/
Useful links, but I am unsure of their purpose here. If the suggestion (if) is that organizing business and residence in the manner OP has described is cheating, the suggestion is unwarranted. Here are a couple of relevant quotes from the first link:

Quote:
All taxpayers are entitled to take all lawful steps that apply to their individual situations in order to minimize their tax liabilities.
Quote:
Tax evasion typically involves failing to report income, or improperly claiming deductions that are not authorized.
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Old 05-30-2013, 03:01 PM
 
27,307 posts, read 16,182,912 times
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250,000 thousand dollars.
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Old 05-30-2013, 03:38 PM
 
391 posts, read 751,047 times
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Thanks a lot everyone for your answers (especially SMUR!).

I just had a phone consultation with a lawyer but it seemed to me that he wanted to sell me bunch of stuff (he wanted 10 grand for helping me file the papers, pretty much).

So the only question that I've got left now is, do I need a specialized immigration lawyer to help my case or could I just as well do it on my own?
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Old 05-30-2013, 03:53 PM
 
686 posts, read 1,763,761 times
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Quote:
Originally Posted by svedski View Post
Thanks a lot everyone for your answers (especially SMUR!).

I just had a phone consultation with a lawyer but it seemed to me that he wanted to sell me bunch of stuff (he wanted 10 grand for helping me file the papers, pretty much).

So the only question that I've got left now is, do I need a specialized immigration lawyer to help my case or could I just as well do it on my own?
Glad to be of help. I don't know if $10K is too much or too little for this particular ase, but I imagine most attorneys will up their estimate when they hear the words investor and immigration in the same sentence.

BTW, did you consult an attorney in the US or in Sweden? Also, DM me if you like to get a second opinion from another attorney. I can share with you the contact information for an attorney I know is pretty capable and reasonable.
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Old 06-01-2013, 05:22 AM
 
Location: Chicago area
1,122 posts, read 3,498,555 times
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One piece of advice I can give you when trying to find an immigration attorney - shop around. Unfortunately some will just humor you to get your money, others will gouge you while others will simply misinform you. You can talk to four lawyers and get four vastly different opinions.
I'm not that familiar with business visas but I can't imagine that 10K is a reasonable amount for filling out the paperwork for you. If I were you I'd do my homework well (read all the instructions and make sure you have the right forms), fill out the forms yourself and use a lawyer on a consultation level only. You don't need to spend thousands to have someone fill out simple forms for you. Many lawyers want you to hire them for that but as long as you speak English and are reasonably intelligent it's a waste of money.

I'm wondering, though, if you are sure that you and your business would qualify for an E2 visa? As I understand it your investment has to be substantial and you must be able to generate significantly more income than to just be able to support yourself and your family. Would a small business with a residual income of 2K qualify?

If you'd consider going into a different business and you have a burning desire to invest in a small but lucrative business with a fellow Swede with a great idea but no capital, let me know - wink, wink!
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Old 06-01-2013, 07:22 AM
 
24,245 posts, read 10,556,999 times
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No matter which way OP tries to skin this cat - he has to apply for E2 and substantiate his application. It sounds like the focus is on living in California. E2 focuses on creation of employment while supporting the employer, no outside employment, renewals in country of origin, no route to Green Card.
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Old 06-01-2013, 04:57 PM
 
Location: Coos Bay, Oregon
7,138 posts, read 10,999,679 times
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Quote:
Originally Posted by svedski View Post
Hi,

I'm from Sweden and I run a pretty profitable and successful mail-order and internet business here.
I'm in the process of establishing an LLC company in the States so that I can move there.

My question is however, which state should I incorporate in?

I will live in California, but since my business will mostly be done online (and if done offline, it will be direct response advertising and mail order, both in the state of California as well as out of state. I will have no physical store where I will sell stuff directly to California consumers).

I've heard great things about Wyoming and how business-friendly that state is.
But if I incorporate in Wyoming and live in California, will that put me into some kind of trouble with IRS, taxes and what not?

Second of all, how will this look to the immigration officers? Apparently, to be eligable for an E-2 (Treaty Investor) Visa, I would need to show proof of a physical location (office). I can't really rent an empty building in Wyoming and show to the immigration. I want to do no "grey area stuff". I want to do this right and follow the law to a 100% (planning on staying in the US for the rest of my life). I don't want anyone to think that I'm incorporating in Wyoming to flee from taxation and cheat the government or anything like that.

So, what do you recommend?

Can I legally and easily incorporate in Wyoming and live in California? (I could actually live with living in Wyoming for 6 months or something, just as a start. But no longer than that.)

Would appreciate any help that I could get. Thank you!

Cheers
Delaware would usually be the state of choice for incorporating a business like that.

Delaware General Corporation Law

You would need to have a place of business. If you don't rent a business location then you would have to use your home address as the place of business. An E-2 visa is difficult. To qualify your business must generate significantly more income than just to provide a living to you and family, or it must have a significant economic impact in the United States. Its not for home based businesses. You should start by reading this:

Visas for Treaty Traders and Treaty Investors
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