Manufacturing in China and exporting to USA

[Windsorphil]

Hi All,

I am making product in China, and am in early talks with a large US based distributor. Have any of you done this (China to USA) before? Should I set up a US based company (I'm sure I don't want to import to UK to export to USA, I'll lose on forex buying from China in US$). Anyone with experience in how straight forward it is to incorporate in US - I think expatriating profit is allowed without penalty?

Phil.

[BigBen]

Windsorphil said:

Hi All,

I am making product in China, and am in early talks with a large US based distributor. Have any of you done this (China to USA) before? Should I set up a US based company (I'm sure I don't want to import to UK to export to USA, I'll lose on forex buying from China in US$). Anyone with experience in how straight forward it is to incorporate in US - I think expatriating profit is allowed without penalty?

Phil.

Have been through / am going through something similar at the moment.

The distributor in the US should be able to take the shipments directly from China, i.e. no need for the goods to go via the UK only the payment. You can get a dollar denominated account from HSBC (and probably others) which could be handy as the US disty will want to pay you in dollars and the factory in China will want paying in dollars.

Would guess there is no need to incorporate in the US and in fact it may be better not to so the US lawyers don't have as easy a time going after you should that situation arise.

Ben