Overseas Investor

[JonAllenBOS]

What is the name of your state? MA. Hello there, I am trying to secure an investor to fund the opening of a studio here in Boston, MA. I found one that may be willing to do so (if they like my business plan), but they are overseas. They want to send me a check for the amount I request and let me handle the rest and just collect their portion of the profits at the end of the year. First off, when the money comes into the country do I have to pay tax on it upon entry into the United States? Secondly, if they send me a check and I deposit it into a bank account would I have to claim it as income even though it's not? Please help!!

[LdiJ]

Originally Posted by JonAllenBOS

What is the name of your state? MA. Hello there, I am trying to secure an investor to fund the opening of a studio here in Boston, MA. I found one that may be willing to do so (if they like my business plan), but they are overseas. They want to send me a check for the amount I request and let me handle the rest and just collect their portion of the profits at the end of the year. First off, when the money comes into the country do I have to pay tax on it upon entry into the United States? Secondly, if they send me a check and I deposit it into a bank account would I have to claim it as income even though it's not? Please help!!

You really need an attorney involved in this process.

No, you don't have to pay tax when the money comes into the country and no you don't have to pay tax on the money as income, as long as the company and its shareholders/investors are set up properly. You need a proper company structure and the money designated as an investment or a purchase of shares.

Therefore...get your butt into a consult with an attorney asap. You will also need to be working with an accountant if you are dealing with an overseas investor/shareholder.....its not simple. It doesn't have to cost an outrageous amount of money, but it also has to be done properly.

[JonAllenBOS]

Thanks a lot LdiJ, problem is (at least I think it may be a problem). At the moment I'm working a crappy job that only pays enough to cover my bills so I can't afford a lawyer. Would I need to pay them right away?

[LdiJ]

Originally Posted by JonAllenBOS

Thanks a lot LdiJ, problem is (at least I think it may be a problem). At the moment I'm working a crappy job that only pays enough to cover my bills so I can't afford a lawyer. Would I need to pay them right away?

They might be willing to wait to be paid out of the investment money. It depends on the attorney.