California  |  Business Law

Legal Question

Asked on: 7/19/13, 1:22 pm

Foreigners Registering Nevada Corp with U.S. Investor

A California based investor will invest in a website developed and operated by a tech person in Europe.

Since the website is targeting U.S. visitors, they want to register a C-Corp in Nevada.

The CA person will be a passive investor owning 70% who will not participate in the operation of the business at all.

The tech person in Europe will run all the business and the website from Europe, owning 30%. He will be the only director and officer of the C-Corp.

Questions:

1. Can the CA person use his SSN to get an EIN if he is not a director, an officer, or an employee?

2. Can the CA person open a business bank account and a merchant account if he is not a director, an officer, or an employee? Can he use his SSN for this?

3. Can the CA person open the business bank account using his residential address in California even if the company is registered in NV?

3. They want to retain all earnings in the company in the start-up stage and not pay any dividend in the first few years. In this case, is there anything the CA person needs to report/reflect in his personal tax filing?

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