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Relocating a business, UK to USA

     
9:21 pm on Jan 4, 2003 (gmt 0)

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a client wants to relocate his business from the UK to the USA. he will remain living in the UK. he's currently a sole trader in the UK but is happy to incorporate or meet any other legal requirements. can he do this? any advice?
10:48 pm on Jan 4, 2003 (gmt 0)

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It varies from state to state, and he could need a Federal tax number - which he can probably find out about by searching around the web site of the Internal Revenue Service [irs.gov].

Don't quote me on this, it's only one idea. I believe a lot of companies set up Delaware Corporations because they're relatively simple and don't involve collecting sales tax. And I think those can be set up regardless of place of residence. I'm not sure, but it's one option to check out.

11:03 pm on Jan 4, 2003 (gmt 0)

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Why?

I can't see many advantages in doing this and plenty of negatives.

11:20 pm on Jan 4, 2003 (gmt 0)

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why? new uk tobacco advertising law means he will only be able to advertise to the trade and within specialist tobacconists. no web, no leaflets, no press or media advertising, nothing, nil, zip. not even allowed to advertise on the net purely for sales outside the uk.

relocating the biz to the US means he can continue in business and make sales to the uk.

11:36 pm on Jan 4, 2003 (gmt 0)

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Good on the Brit's. I'm one and smoke 40 plus :).

Why not relocate it to a another Country known for it's offshore status.

The last thing I would do if I sold fags was to base it in USA. Far too much litigation!

11:44 pm on Jan 4, 2003 (gmt 0)

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Exactly- they are currently 'featuring' mouthy teenagers 'lipping off' to adults in commercials. (What ever happened to respect your elders?)
5:19 am on Jan 5, 2003 (gmt 0)

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relocating anywhere will be a pain. not sure where in the world is best, but USA is probably the best bet - major tobacco producer and less likely to impose a total ban on tobacco advertising and promotion, easy and cheap to get to, relaxed laws, "trusted" worldwide. we've actually done a lot of research and many other developed countries have or are imposing tough laws. less developed countries mean business will be "less trustworthy" and that counts for a lot in ecommerce. personally i don't want the hassles - i've recommended the client puts the business up for sale, but he won't. he insists on relocating .....
2:42 pm on Jan 5, 2003 (gmt 0)

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Crazy_Fool - the US is increasingly hostile to tobacco advertising, and an eventual total ban would not be out of the realm of possibility. As it is, most mass media (but not the web) are banned from advertising tobacco products.

I can understand your client's need to find a more friendly business environment - but I am not sure this (the US) is it.

 

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