Time to talk about officers

When it comes to the day to day work of a stock corporation in the US, neither the board nor the shareholders are typically involved – they don’t sign agreements, give orders, or do much of anything all. Instead, they appoint officers, who are responsible for the day to day operations of the corporation, andContinue reading “Time to talk about officers”

Shareholder and Board of Directors

As part of our short series on forming a US corporation, it’s important to understand the management structure, since there are significant differences between those structures in Germany (and many other countries) and the US. First, we’ll start with the shareholders and board of directors. Shareholders The Shareholders are the owners of the company (Aktionäre)Continue reading “Shareholder and Board of Directors”

Obtaining your company’s US tax number

One of the most important steps in the formation of a new company is the application for an Employment Information Number (EIN, or also FEIN). The EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. Originally, the EIN was limited to reporting employment-relatedContinue reading “Obtaining your company’s US tax number”

Incorporating in the United States

A while ago, I wrote an article on choosing the state of incorporation for your US company. Now that you’ve decided where your company will be located (probably Delaware), the next step, of course, is to incorporate: First, you file a brief document (the Articles of Incorporation or, in Delaware, Certificate of Incorporation) outlining theContinue reading “Incorporating in the United States”

Business visas to the US about to get more expensive

As if coronavirus hasn’t already made business travel complicated enough, the cost of many of the most common non-immigrant business visas to the US is about to increase significantly. The USCIS recently announced an increase in the filing fees for certain immigrant and non-immigrant visas which allow foreign citizens to live and work in theContinue reading “Business visas to the US about to get more expensive”

Dealing with the Risks of Remote Service

The German business newspaper Handelsblatt ran an article (in German) last week discussing the issues facing German companies with US subsidiaries during the coronavirus. While a lot of business can be done remotely, much of Germany’s export economy is based on industrial goods, and those goods often require in-person service or installation. Given that mostContinue reading “Dealing with the Risks of Remote Service”

Too much information … information … information

One of the questions I’m asked all of the time is one which no one on this side of the Atlantic Ocean would ever expect, and that is, what are the legal requirements for business letterhead in the US? The answer is, there are none, usually accompanied by a vaguely perplexed look. That’s not entirelyContinue reading “Too much information … information … information”

State of Incorporation

Europeans often think that they are catching up to the US, at least in terms of harmonized and consistent laws, but in many instances our system is actually more federalized than that of Europe. Whereas you can now form a European corporation, US corporations are formed under the laws of a particular state, rather thanContinue reading “State of Incorporation”