In France

Tax system

VAT

US wage status

 

HOW TO USE A US CORPORATION?

Some possible uses of a US corporation:

• New start-up

A European who has, for example, gone bankrupt and been convicted can no longer run a business (Bank of France file etc...).

Specific bans only concern the State which decided them.

Somebody who has had this kind of problem can, LEGALLY, incorporate a US company, deal with any activity and open business accounts.

This is a LEGAL and RISKLESS solution.

Moreover, assets brought into a US Corporate are non-seizable.

 

• Net of tax

Shares of a US corporation are "physical" share certificates that can be transferred without formality or tax.

Transferring a US Corporate is like giving share certificates cash in hand. Of course, by giving a company to an heir, you also transfer all company assets (securities, shares, real estate, ...).

If you were careful enough to put your property under the company's control, succession would be net of tax and fees.

 

• Holding

As a legal entity a US corporation can have up to 99% of the capital of a European firm (SARL, SRL, SCI, SA...). At least 1% has to be given to the manager or requested shareholders.

This can happen while incorporating the company, by transfer, or by a contribution in the case of a French existing legal entity.

 E.g. : A hotel where the building belongs to a SCI and the business is run by an SARL.
The US corporation will take control of both SCI and SARL by possessing 99% of its subsidiaries.
In the case of sale, it would be possible to sell:

1) The US corporation (without any fees or tax) including both French firms.
2) Only the SARL and in that case :

- The SCI (and therefore, the corporation) would still collect the rents.

- The SARL could even pay the corporation for the use of the hotel name (which should have previously been registered with the INPI ).

THERE ARE MULTIPLE POSSIBILITIES  

• Import – Export

Obviously, in this document, we cannot give complete details of all the possible uses.

Since, under modern legislation, a company can carry out any activity, the opportunities are considerable and can be adapted to suit any case.