Post Brexit Business Strategies - Setting Up A Company in The US

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Setting up an E1 or E2 Company in the U.S
Company Incorporation Services for E1 Investors and E2 Treaty Traders in the U.S
Yondaa, Inc.
2 N Central Ave #1800
Phoenix, AZ 85004
United States of America
contact@yondaa.com
https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

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Index of Contents
1. Overview
2. How to Apply
3. Treaty Trader Visa (E-1)
4. Treaty Investor (E-2)
5. Setting up your U.S Company
a) U.S Company Structures
b) Obtaining a U.S Business Address
c) Filing Documents with State
d) Obtaining an EIN Tax ID
e) Registered Agent Services
f) Bylaws and Resolutions
g) U.S Business Bank Accounts
h) International Document Delivery
6. Length of Visa’s & Eligible Countries
7. Interview Documents for E-1 & E-2 Businesses
8. Where and How to Apply
9. Our Company Incorporation Services and Prices
10. Appendix

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1. Overview
Our U.S Formation Services for International Companies
This white paper is intended to document Yondaa company formation services to

support an E1 or E2 U.S company formation. In addition, we have provided a step
by step guide for international companies wishing to establish a physical presence
in the US market.
The E1 & E2 Treaty and Investor Visa Overview

Treaty Trader visas (E-1) and Treaty Investor visas (E-2) are nonimmigrant visas for
citizens of countries which the United States maintains a treaty of commerce and
navigation (list of countries eligible for visa). The applicant must be coming to the
United States to engage in substantial trade, including trade in services or
technology, in qualifying activities, principally between the United States and the
treaty country (E-1); or to develop and direct the operations of an enterprise in
which the applicant has invested or is in the process of investing a substantial
amount of capital (E-2).
The Treaty Trader and Treaty Investor visas were established to facilitate and
enhance economic interaction between the United States and other treaty
countries. They were not intended to serve as a means for foreigners to retire or
merely reside in the United States. U.S. law (see paragraph 101(a)(15)(E) of the
Immigration and Nationality Act) explicitly states that E-1 visa holders must enter
“solely to carry on substantial trade” and E-2 holders “solely to develop and direct
the operations of an enterprise” in which he or she has invested. Moreover, these
visas are nonimmigrant visas and thus temporary.
Treaty trader/investor visas can be renewed or extended only if the investment or

trade continues to meet all applicable requirements of U.S. immigration laws and
regulations. Persons wishing to remain indefinitely in the United States should
apply for the appropriate immigrant visa.

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E-1 Treaty Trader Visa Example

A UK based shoe design and manufacturing company has been trading its goods
to the United States for the last several years. Over 50% of their international
trade takes place exclusively between the United States and the United Kingdom.
Over the last year, their trade has grown significantly and now they wish to move
sales staff permanently to the United States to help increase their trade. The UK
shoe business may benefit from an E-1 treaty trader visa.
E-2 Treaty Investor Visas Example

A successful British investor and tech entrepreneur recently purchased a 75%
stake in a startup located in Los Angeles for $500,000. The startup operates at a
profit and employs over 20 staff, most of whom are American citizens. If all the
conditions for the visa are met, the investor could obtain an E-2 treaty investor
visa to oversee the company in the United States. Also, the investor can send over
well-qualified product managers to the United States to work in the company.
How Does Yondaa Fit into This?

Our U.S company formation services include everything you need to get your
company up and running, including filing your incorporation documents with the
state, obtaining an operating agreement & EIN tax ID for your business, mail
delivery, forwarding and handling and registered agent services for your business
as required by state law. Yondaa’ s services provide everything you need to legally
establish your US business.
Who Are We?

Yondaa was formed on the premise that it shouldn’t be complicated to take your
business international. In an age where markets are becoming increasingly
intertwined and products and services transcend national boundaries, we believe
that setting up a business should be simple and free of red tape. That’s why our
core service is removing the complexity and packaging company formations into
an easily manageable process where we work on your behalf to establish your
business, so you can spend time thinking about running your business.
Purpose and Intent of this White Paper

The intent of this white paper is to provide an in-depth overview of the E1 & E2
visa to define the process for companies wishing to expand into the U.S market.

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2. How to Apply
Process Overview
The process to apply for an E1 or E2 visa is reasonably straight forward, assuming
the company or investment meets the qualifying criteria. The following section
documents how to apply and what the various steps are in the process.
Treaty Traders and Treaty Investors (Owners)

Treaty traders and investors must first register their company with the E-Visa
Unit. To do this, they submit by email, supporting documents as described in the
following pages and wait until the company has been reviewed by the E-Visa Unit.
Once the review is complete, the E-Visa Unit will contact the treaty trader or
treaty investor to arrange an interview date.
Employees
Employees of registered companies make their appointments through the U.S.
Visa Appointment Service. They do not need to submit any documents in
advance. On the day of the interview, they are required to present the
documents required for employees.
Forming your U.S Company

You can form your U.S company in any state via our online services -
https://yondaa.com/us-company-formation-services/
Registering a Company
Once you have formed your company, registering is a three-step process:
Step 1 – Complete the online visa application form DS-160;

Step 2 – Go to the Visa Appointment Service website
• Create an account;
• Pay the MRV application fee; and
• Arrange for the delivery of your passport post visa interview.

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If your family requires multiple appointments for both the B-2 visa (tourist/visitor)
and the E visa, a Visa Appointment Service account must be created in the name
of the E visa applicant. Then you should follow the onscreen ‘Add Applicant’
instructions to add the information for the E visa applicant. Following that, you
will be able to ‘Add Applicant’ details for the B visa applicant.
Step 3 – Electronically submit the supporting documents. Instructions concerning

this, including the email address to which they should be sent, will be provided at
the time the applicant registers at https://ais.usvisa-info.com/en-gb (For non UK
treaty applicants, you can find your embassy website in our appendix)
Review
Only when steps 1 – 3 have been completed and the application has been
received by the E-Visa Unit will the case be accepted for review. The applicant
and/or legal representation will be sent an email confirming receipt of the case.
At this point, the E-Visa Unit will not accept any unsolicited additional documents.
Cases are reviewed by the E-Visa Unit to ensure that they meet the requirements
found in 9 FAM 402.9. Cases are reviewed on a first-in, first-out policy based on
when the case if found to be complete. Additional documents may be requested
during the review process. The current review time for each case is 45 days.
Please plan when considering an application for an E visa as it is not possible to
expedite the case.
Once the review is complete, the applicant or legal representative will be:
• Notified that the case has been reviewed;

• Provided a list of any additional documents required; and
• Advised of appointment availability.
Applicants must/must attend an interview within three months (90 days) of this
initial notification. Cases will not be held longer than 90 days.

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3. Treaty Trader Visa (E-1)
E1 Treaty Trader Visa Summarized

The process to apply for an E1 visa is reasonably straight forward, assuming the
company or investment meets the qualifying criteria. E1 eligible company’s are
those where over 50% of their international trade takes place exclusively between
the United States and the applicants country that is an E1 treaty nation.
Putting together the Visa Application File

The following structure and documents are required as part of your application
process. Its recommended you adher closely to this structure and submit all
required documents as part of your application process.
Section A (Table of Contents and Cover Letter)

In your application you must provide;
Please provide a cover letter describing the enterprise and the beneficiary. This
letter should address all the requirements for E-1 visa eligibility which are
described in depth in U.S. Department of State Foreign Affairs Manual (9 FAM
402.9) and require the applicant to show:
• that the requisite treaty exists (9 FAM 402.9-4(A));

• that the individual and/or business possesses the nationality of the treaty
country (9 FAM 402.9-4(B));
• that the activities constitute trade within the meaning of the Immigration
and Nationality Act, section 101 (a) (15) (E) (9 FAM 402.9-5(B));
• that the trade is substantial (9 FAM 402.9-5(C));
• that the trade is principally between the United States and the treaty
country (9 FAM 402.9-5(D));
• that the applicant, if an employee, is destined to an executive/supervisory
position or possesses skills essential to the firm’s operation in the United
States;(9 FAM 402.9-7(B)); and

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• that the applicant intends to depart the United States when the E-1 status
terminates (9 FAM 402.9-4(C)).
Section B (Forms)
• DS-160 Confirmation Sheet and DS-156E: All E-1 principal applicants and
employees are required to complete both the DS-160 online electronic visa
application form and the DS-156E (PDF – 234kb). Contact information
provided on the DS-160 should include an e-mail address;
• A copy of the payment receipt showing that the MRV fee has been paid.
• If the applicant is not an investor but an employee, please provide a letter
discussing the job in detail. The letter should be printed on the company's
letterhead and should describe:
▪ the company;
▪ applicant’s title and role;
▪ Salary, allowances, benefits and other compensation that the
applicant will receive;
▪ his or her qualifications for that job; and
▪ The company’s contact information.
• If applicable, please submit a letter of agreement between the treaty trader

and their legal representative signed by both parties and include a contact
e-mail address and phone number.
Section C (Applicant Information)

• A colour photocopy of the biodata page of the principal applicant's

passport and similar copies of any US visas, US entry/exit stamps, and I-
94's;
• A copy of any changes or extensions of status granted by USCIS (Form I-
797);
• Evidence of the applicant’s ongoing residency in the UK (or country of
residency if appling from another treaty eligible country, including, as
appropriate, a copy of the current lease or mortgage for the applicant’s
primary residence; the applicant’s most recent pay stub;
• A resume or curriculum vitae of the principal applicant;

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• A copy of educational certificates, diplomas and/or transcripts; and

• Signed statement of intent to depart the US upon the termination of status.
Section D (Ownership)
• Articles of Incorporation (for corporations), Articles of Organization (for
LLC’s) or other similar documents for US business;
• Share certificates, Operating Agreement, Share Ledgers or other
applications documents to confirm ownership;
• Colour photocopies of the biodata pages of the passports of the owners of
the ultimate parent company;
• If the U.S. based business is a subsidiary or affiliate of a foreign corporation,
provide their relevant incorporation and ownership documents for the
business. If the foreign business is based in the United Kingdom, provide a
copy of their latest Companies House AR01 Report;
• If you have a large company with several owners or subsidiaries or if the
chain of ownership includes intermediary entities, please also submit the
following:
• An organogram of the full ownership structure; and
• Legal evidence of instances of ownership within that chain;
• If the investor is a public company with many shareholders, none of whom
owns more than 50%, please also include:
• An affidavit signed by the appropriate corporate official asserting that the
company is traded exclusively on the London Stock Exchange; and
• A copy of the most recent trading information on the stock.
Section E (Trade)
• A spreadsheet listing every qualifying transaction of international trade

between the United States and treaty country during the last calendar year.
• Copies of all the invoices summarized in the table;
• Copies of all air bills or shipping invoices.
• The most recent U.S. federal tax returns for a US entity, or annual report
(Financial Statements) for a UK entity. US tax forms must be copies of the
signed and dated forms submitted to the IRS.

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4. Treaty Investor (E-2)
E2 Treaty Investor Visa Summarized

The process to apply for an E2 visa is reasonably straight forward, assuming the
company or investment meets the qualifying criteria. E2 eligible company’s are
those where investment is made into starting or acquiring a U.S company where
the investment amount is not ‘insignificant’. The following section documents
how to apply and what the various steps are in the process.
Putting together the Visa Application File

The following structure and documents are required as part of your application
process. Its recommended you adher closely to this structure and submit all
required documents as part of your application process.
Section A (Table of Contents and Cover Letter)

A cover letter describing the enterprise and the beneficiary. This letter should
address all the requirements for E-2 visa eligibility. This letter should address all
the requirements for E-2 visa eligibility which are described in depth in U.S.
Department of State Foreign Affairs Manual (9 FAM 402.9) and require the
applicant to show that the:
• Requisite treaty exists (9 FAM 402.9-4(A));

• Individual and/or business possesses the nationality of the treaty country (9
FAM 402.9-4(B));
• The applicant has invested or is in the process of investing (9 FAM 402.9-
6(B));
• Enterprise is a real and operating commercial entity (9 FAM 402.9-6(C));
• Applicant’s investment is substantial (9 FAM 402.9-6(D));
• Investment is more than a marginal enterprise solely for earning a living (9
FAM 402.9-6(E));
• The applicant is in a position to develop and direct the enterprise (9 FAM
402.9-6(F));
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• Applicant, if an employee, is destined to an executive/supervisory position

or possess skills essential to the firm’s operations in the United States (9
FAM 402.9-6(B) and (C)); and
• The applicant intends to depart the United States when the E-2 status
terminates (9 FAM 402.9-4(C)).
Section B (Forms)
• DS-160 Confirmation Sheet: All E-2 principal investor applicants and

employees are required to complete the DS-160 online electronic visa
application form and submit their application confirmation sheet. Contact
information provided on the DS-160 should include an e-mail address.
• DS-156E (for all principal applicant E-2 employees): E-2 employees are also
required to complete and submit the DS-156E (PDF). Please note principal
investor applicants are not required to complete the DS-156E.
• A copy of the payment receipt showing that the MRV fee has been paid;
• A detailed letter discussing the applicant's job in detail. The letter should
be printed on the company's letterhead and should describe:
▪ the company;
▪ applicant’s title and role;
▪ Salary, allowances, benefits and other compensation that the
applicant will receive;
▪ his or her qualifications for that job; and
▪ The company’s contact information.
• If applicable, please submit a letter of agreement between the treaty trader

and their legal representative signed by both parties and include a contact
e-mail address and phone number.
Section C (Applicant Information)

• A colour photocopy of the biodata page of the principal applicant's

passport and similar copies of any US visas, US entry/exit stamps, and I-
94's;

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• A copy of any changes or extensions of status granted by USCIS (Form I-

797);
• Evidence of the applicant’s ongoing residency in the UK (including, as
appropriate, a copy of the current lease or mortgage for the applicant’s
primary residence in the UK; the applicant’s most recent UK pay stub;
• A resume or curriculum vitae of the principal applicant;
• A copy of educational certificates, diplomas and/or transcripts; and
• Signed statement of intent to depart the US upon the termination of status.
Section D (Ownership)
• Articles of Incorporation (for corporations), Articles of Organization (for

LLC’s) or other similar documents for US business;
• Share certificates, Operating Agreement, Share Ledgers or other
applications documents to confirm ownership;
• Colour photocopies of the biodata pages of the passports of the owners of
the ultimate parent company;
• If the U.S. based business is a subsidiary or affiliate of a foreign corporation,
provide their relevant incorporation and ownership documents for the
business. If the foreign business is based in the United Kingdom, provide a
copy of their latest Companies House AR01 Report;
• If you have a large company with several owners or subsidiaries or if the
chain of ownership includes intermediary entities, please also submit the
following:
▪ An organogram of the full ownership structure; and
▪ Legal evidence of instances of ownership within that chain;
• If the investor is a public company with many shareholders, none of whom

owns more than 50%, please also include:
▪ An affidavit signed by the appropriate corporate official
asserting that the company is traded exclusively on the London
Stock Exchange; and
▪ A copy of the most recent trading information on the stock.

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Section E (Investment)
• A detailed breakdown, or spreadsheet, of all funds invested into the U.S.

venture;
• Evidence of your investment. For example:
▪ Signed, dated, valid lease for business premises, including
evidence of payments;
▪ Evidence of equipment and/or inventory purchases;
▪ Evidence of intellectual property or other intangibles invested;
and
▪ Evidence of any other funds spent to acquire and set up the
business.
• If you are buying an existing business, please provide all of the following
that applies in your case:
▪ A signed, dated, valid purchase agreement; and
▪ If applicable, a binding escrow agreement (9 FAM 402.9-6(B))
that explicitly confirms how the funds will be distributed if the
visa is issued, what happens when it not issued, and is signed
and dated by all parties. acquire and set up the business.
• If you are purchasing a franchise, please provide:
▪ A signed and dated franchise agreement;
▪ A copy of your franchise disclosure document; and
▪ Evidence of payment of the franchise fee.
• Evidence of how the funds invested into the U.S. venture were acquired in
the form of:
▪ Documentation of the source of the funds (sale of property,
inheritance, loans, earnings, sale of business etc)
▪ Evidence that the funds have been moved to the United
States; and
▪ If the funds have come from a foreign-based parent or affiliate
company, a copy of their latest financial statements.

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Section F (Real and Operating)

• Evidence that the business if real and active. For example:

▪ Relevant local, state and/or federal licenses;
▪ Agreements, contracts, customer lists or other similar
documents;
▪ Evidence confirming any ongoing and future work;
▪ Marketing and promotional materials; and/or
▪ Other documents that will help confirm that the venture is real
and active.
• If the business is an affiliate or subsidiary of a foreign company or group,
please provide evidence that the foreign company or group is active. For
example:
▪ Financial statements;
▪ Annual report; and/or
▪ Other documents that confirm the foreign company is trading.
Tab G (Marginality)
• Evidence that the business is more than a marginal enterprise;

• If the business is already established and operating, please provide:
▪ U.S. federal tax returns for the business for the last three
years. These must be copies of the signed and dated forms
submitted to the IRS. We will not accept state tax returns;
▪ Detailed profit and loss statements for the current and
previous calendar years; and
▪ All W-2, 1099s and/or payroll invoices for the last two tax
years.
• If the business is a new start-up, please provide:
▪ A comprehensive business plan;
▪ A detailed five-year profit and loss forecast for the business.
Also, provide the assumptions on which the forecast is based;
and
▪ A breakdown of start-up costs necessary for the business to
become operational.

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5. Setting up your U.S Company
Company Incorporation Services

The following section aims to define the various company structures available in
the US. Once you have decided the company structure that best suits your needs,
you can easily setup your company online with Yondaa at -
https://yondaa.com/us-company-formation-services/
A) U.S Company Structures

One of the first steps in setting up your E1 or E2 investor business is to determine
the best type of legal entity for immigrant investor’s conduct of business in the
United States.
This section addresses the basic elements of the following five business entities:
sole proprietorship, corporation (C corporation and S corporation), partnership
(general and limited), limited liability partnership, and limited liability company.
Each entity has its advantages, disadvantages, and tax implications, and it will be
important for you to understand the purposes and objectives of the proposed
business before determining which type is most appropriate. Choosing the right
legal entity can help to minimize the owner's liability for obligations of the
business.
SOLE PROPRIETORSHIP
A sole proprietorship is a business entity that is not otherwise incorporated or
organized as a separate legal entity and therefore has no separate existence from
its owner. It essentially refers to an individual doing business in his or her name
(or possibly under a different "assumed" name). A sole proprietorship may be the
preferred manner in which to conduct business in the United States if the
business owner does not anticipate complex financing or co-owners and wants to
keep things simple in terms of business filing and compliance.
The principal advantage of a sole proprietorship is the ease involved in forming

such a business. No documents are required to be filed with any government
agency, although the sole proprietorship must meet other legal requirements for

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doing business, if any, such as licensing, permits, and insurance. If the sole
proprietorship does business under a name different from that of its owner, a
certificate must generally be filed with the state(s) in which the business is being
conducted, so that the authorities and the public can determine who is “behind”
the business.
The main disadvantage of a sole proprietorship is that the owner is personally

liable for all acts of the company, including all debts and liabilities. Such personal
liability is unlimited and can put the owner at substantial financial risk. For
example, if an employee of a sole proprietorship negligently injures an individual,
the sole proprietor can be held liable for all liabilities associated with the injury,
and all her assets will generally be available to satisfy the claim.
A second disadvantage is the lack of anonymity. Everyone knows, or can readily

find out, who owns the business. If anonymity of ownership is important to your
client, particular care needs to be taken in determining what type of entity to use
and where to establish it.
A sole proprietorship and its owner are treated as one. For example, taxable
income earned by the business is deemed to be an income of the owner, and
expenses of the business are taken as deductions against the owner's income and
must be reported as such on the owner's federal (and state, if applicable) income
tax return. Sole proprietorships are taxed on all net income, which means it is not
possible for the business to retain earnings without the owner being taxed on
them. If the owner wants to use the income of the business to grow the company
(for example, to reinvest the profits back into the business), a different type of
legal entity, such as a corporation, should be considered.
CORPORATION (C CORPORATION AND S CORPORATION)

A corporation is a separate legal entity, existing independent of its shareholders,
officers, and directors. It is created under and exists according to the authority
granted by state law. Corporations do not need to be incorporated or established,
in the state where the owners live, but must be incorporated or authorized to do
business in the state or states in which the business is conducted. It is very
common, for example, for a corporation to be incorporated in the state of
Delaware (which has favourable corporate laws) and then separately authorized

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to do business in another state, such as New York, where the corporation expects
to engage in business.
One of the main advantages of choosing a corporation for operating a business is

that it offers limited liability for its shareholders (i.e., owners). Assuming that the
requirements for forming and operating a corporation are satisfied, the
corporation's shareholders will generally not be held personally responsible for
the acts or obligations of the corporation solely because of their investment in the
corporation. This personal liability protection can be lost, however, if the
corporation is deemed to be the "alter ego" of its shareholders or a "mere
corporate shell," or if its set-up or operation is such that the principles regarding
"piercing the corporate veil" can be applied. These legal concepts are beyond the
scope of this article. However, you should make your clients aware that it is
possible for the courts to determine that there is no real differentiation or
separate existence between the corporation and the owner, resulting in the
shareholder is responsible for all acts and obligations of the corporation if it is not
operated properly. Clients should not assume that filing a certificate of
incorporation and putting minimal capital into the entity will give them
protection.
The terms “C corporation” and “S Corporation” are tax terms. A C corporation is

one that is governed by subchapter C of the Internal Revenue Code.
Section 301 et seq. of the Internal Revenue Code of 1986, as amended.
A C corporation is taxed as a separate entity, apart from its owners. The

corporation will have to file a corporate tax return and pay taxes on the income it
receives. If any dividends are paid to the owners, the owners will have to report
and pay taxes on the money received as dividends. Dividends are not deductible
to the corporation. This is referred to as double taxation and could be deemed a
disadvantage to the C corporation structure. Similarly, if the corporation has net
losses, the shareholders do not get the benefit of deducting them on their
returns.
An S corporation is governed by subchapter S of the Internal Revenue Code.

Section 1361 et seq. of the Internal Revenue Code of 1986, as amended.

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It is one of several types of entities typically referred to as a "flow-through"

entity. Such entities are not subject to double taxation at the federal level (there
may be state tax exceptions, however). S corporations do not pay tax on income
earned. Instead, the profits and losses of an S corporation "flow-through" to, and
are reported on, the shareholder's income tax returns. This means, among other
things, that the shareholder pays taxes on the entity's taxable profits whether or
not they are distributed. An S corporation is formed the same way a C corporation
is formed, and it functions under the same structure; the S corporation election is
a tax-driven mechanism and is elected by filing Form 2553 (Election by a Small
Business Corporation) with the Internal Revenue Service.
In addition to making such an election on time, there are several requirements for
qualifying under S corporation status. They include a limit on the number of
shareholders (100 shareholders for tax years beginning after January 1, 2005, and
75 shareholders for tax years beginning prior to January 1, 2005); shareholders
may only be U.S. citizens, legal permanent residents, and certain trusts and
estates; and only one class of stock is permitted.
These requirements generally make the S corporation unavailable as an

alternative for non-U.S. owners.
Of the entities discussed in this article, corporations are generally subject to the
most detailed documentation requirements. For example, it is necessary to file a
certificate of incorporation in the state of incorporation, to file documents to
qualify the entity in other states where it has fixed operations or otherwise
transacts business, to have a board and officers, and to comply with annual or
other periodic filing requirements. The documentation requirements are routine.
It is, however, important that they are complied with on establishment and going
forward.
PARTNERSHIPS
There are two types of partnerships, general and limited.
A general partnership exists when two or more business owners engage in

business, even if they do not formalize the partnership relationship in any other
manner, such as through a partnership agreement. While it is best to have a
formal agreement governing the partnership relationship, it is not required under

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the law. The law regulating general partnerships in most states is the Uniform
Partnership Act, which is a model law that individual states have adopted, often
with some modification, resulting in some variation among the different states.
The Uniform Partnership Act includes rules on a variety of subjects relevant to
partnership and their owners. In many cases, these are default rules that the
partners can modify by agreement.
A general partnership exists and functions as a legal entity separate from its
partners. It can own or convey legal title to real property in and can sue or be
sued under, the name of the general partnership. How the general partnership's
profits and losses are allocated (e.g., equally or disproportionately) can and
should be addressed in the partnership agreement. Absent such an agreement,
the profits and losses are shared equally among all partners. Further, absent an
agreement that states otherwise, as co-owners, each partner has an equal right to
participate in the management of the business, regardless of actual ownership
percentage.
A general partnership is relatively easy to establish. There may be a “name”-type

filing in some states, but documentation and filing requirements are fewer than
for a corporation. While a written partnership agreement is not mandatory, it is
strongly recommended.
The main disadvantage to establishing a general partnership is that each partner

has personal liability for all of the partnership debts. Each general partner is
jointly and severally liable to third parties for the business obligations of the
partnership, regardless of how the partnership agreement allocates losses. Each
partner may likewise be held liable for commitments entered into, or, for
example, tortious acts committed, by another partner in the course of the
partnership’s operations.
Concerning taxation, partnerships are also "flow-through" entities. They are not
subject to federal income tax on the income earned by the business, but the
individual partners are considered to have earned the income attributable to the
partnership. Individual partners, therefore, pay income tax on the profits
attributable to them from the partnership as if such money was personal income
(again, whether or not the income was distributed). If the partnership experiences

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a loss, the individual partners can claim such loss as a deduction on their federal
income tax return equal to their respective ownership percentages.
A limited partnership is a specific type of partnership authorized by state laws. It

is largely similar to a general partnership, but it also has one or more limited
partners in addition to general partners. Generally, the day-to-day business of a
limited partnership is managed by the general partners, who remain subject to
personal liability for the debts of the partnership. The limited partners most often
contribute capital to the business in exchange for a share of the profit but are not
subject to such personal liability. As long as a limited partner is acting in such
capacity (note that the protection against personal liability afforded to a limited
partner can be lost if the limited partner engages in management of the
partnership), the limited partner's liability is limited to the amount of money it
invests (or agrees to invest) in the partnership.
Taxation of limited partnerships is the same as that for general partnerships, such
that income earned by the partnership is attributed to the partners according to
their ownership interests, and profits can be divided among the individual
partners as the party’s desire. The allocation provisions, which are often very
complex, should be outlined in detail in the partnership agreement.
LIMITED LIABILITY PARTNERSHIP

A limited liability partnership has elements of both a partnership and a
corporation. In a limited liability partnership, the Uniform Partnership Act (or
comparable laws) provides limited liability for partners similar to that of
shareholders in a corporation. Additionally, all of the partners of a limited liability
partnership can participate in the daily management of the business. Limited
liability partnerships are generally limited to professionals, such as lawyers,
accountants, and architects. In some states, including New York and California,
they can only be used for such professional practices.
The advantage to doing business as a limited liability partnership is that the

structure provides limited liability protection to its partners (each partner is liable
for his or her conduct and afforded limited liability for the conduct of other
partners) and there is no double taxation as with a corporation. The disadvantage
is that few businesses may qualify for such a structure, particularly if more states
restrict limited liability partnerships to professional businesses.

21
Taxation of limited liability partnerships is essentially the same as that for general
and limited partnerships, such that income earned by the partnership is
attributed to the partners according to their ownership interests, and profits can
be allocated among the partners as they agree. A written agreement is again
strongly recommended.
LIMITED LIABILITY COMPANY

A limited liability company is a legal entity offering the benefits of both a
partnership and a corporation, such that pass-through tax treatment (like a
partnership) and generally limited liability protection (like a corporation) apply
unless otherwise determined by the owners. A limited liability company can be
established by one or more owners, each of whom is called a "member."
Members may choose to manage the limited liability company individually or
elect a manager or managers (more or less the equivalent of corporate officers) to
operate the business daily.
A limited liability company is governed by an operating agreement or limited

liability company agreement, which is an agreement among the members
covering subjects such as the members rights and restrictions regarding the
management and control of the company; limits on the transfer of membership
interests; whose approval is required for various activities relating to the
management of the company (such as veto rights, special voting requirements)
and other governance matters; and how profits will be divided among the
members. As with partnerships, it is preferable that a written operating
agreement or limited liability company agreement be prepared and signed by all
members, although state laws provide default provisions that apply in the
absence of an agreement. Among other things, the process of preparing a written
agreement will encourage the members to address various issues that they may
not otherwise consider or want to consider, such as restrictions on transferability,
the possible sale of the business, and division of profits.
The main advantages associated with a limited liability company are that
members and managers are not subject to personal liability for the company's
debts, obligations, or liabilities by being members or serving as managers, and
limited liability companies are very flexible in structure. For example, an operating
agreement can easily provide for sharing of profits that differs from the

22
proportionate ownership interests (for example, 75/25 per cent sharing of profits
but 50/50 per cent ownership). It is also possible to have multiple classes of
members, with different preferences and shares.
As is the case with a corporation, care must be taken to ensure that the limited
liability desired by the owners is obtained and maintained. While there is a less
legal authority in the area of limited liability companies, you and your client need
to consider capital adequacy, operation of the company as a separate legal entity,
and similar concepts.
Concerning taxation, limited liability companies enjoy the same flow-through tax
treatment that partnerships and S corporations do, which means that even
though a limited liability company must file a tax return, it does not pay taxes on
its income. Instead, the members of the company report income and pay taxes
owed on such income on their federal income tax returns. This taxation treatment
avoids the double taxation associated with a corporation, but similar to a
partnership and an S corporation, the limited liability company may not retain
earnings without the members having to pay income taxes on such earnings.
CONCLUSION
The above information is general, and it is provided to give a basic understanding
of the various legal entity choices for individuals or entities wanting to do
business in the United States. Each alternative presents different factors in terms
of convenience, risk, and other considerations. There are considerable resources
available on the legal and practical considerations relevant to the selection of a
legal entity. It is also important to involve a tax advisor in any planning.
Once you have an understanding of the type of business in which you expect to
engage, the short-term and long-term goals of the business, and the relevant legal
issues and applicable requirements, you will be in a better position to suggest a
legal entity that will suit the needs of your client and protect the client’s ultimate
objectives.
Apply online today - https://yondaa.com/us-company-formation-services/

23
B) Obtaining a U.S Business Address
I. Virtual Mailbox Services
A virtual mailbox service offers a permanent business street address for receiving
mail. Once the mail is received, the mail is scanned and an image of the mail
envelope is uploaded into your digital mailbox. You can then view and request to
have selected mail pieces opened and the contents scanned.
Alternatively, you can have your mail forwarded to another address, which is
useful if you receive your new credit cards, driver license, or passport. With a
virtual mailbox, you can essentially read and manage your mail online from
anywhere in the world.
What are the Advantages of a Virtual Mailbox?

A virtual mailbox is the best solution for managing your mail remotely from
anywhere. This type of service offers many conveniences:
• Get a permanent street address without the hassle of checking a physical

mailbox or travelling to the mailbox location. Your permanent address is
yours no matter where you live or move to.
• Save time managing your mail with the ability to quickly and easily search
through PDF scans using OCR technology.
• Shop at online US stores even if they don’t ship internationally. You can
have packages shipped to your virtual mailbox and then forwarded on to an
international destination.
• Easily forward mail and important documents, such as your driver license or
credit cards, to yourself no matter where you are.
• Store digital mail documents for future reference or tax purposes. You will
never need to sift through years of paper just to find what you need.
• Streamline workflow and automate tedious administrative tasks when it
comes to snail mail and package delivery.
• Simplify mail processing by centralizing all your mail in one single location
without having to deal with mail being sent to multiple offices or people.
• Maintain a mailing address that never changes even if your physical
location changes or if you move. You will never have to update your mailing
address again.

24
Many virtual mailing services offer a series of extra perks, such as depositing
checks to your bank account, physical mail storage, mail shredding, and even
registered agent service for your company.
What are the Disadvantages of a Virtual Mailbox?

If you cancel the mail service, you cannot use USPS to forward your mail to your
new address. You will have to notify everyone of your change of address.
There are additional costs incurred by having to forward mail compared to picking
up mail. Opening business bank accounts may be more difficult since banks
usually require you to have a physical office.
Using the mailbox address in another state may cause the state tax authority to
assume that you have a nexus there, which may subject you to taxes in that state.
Who Will Benefit Most from a Virtual Mailbox?

A virtual mailbox is an affordable option for small businesses and startups that
want to convey the appearance of having a physical office without the need to
have a commercial office space.
It is also ideal for those who run their businesses out of their homes and wish to
keep their personal information private as well as international companies
looking to have a presence in the United States.
A private mailbox store is a store that is usually located in a retail centre or plaza
and offers mailboxes linked to their store address. You can rent this type of
mailbox from places such as The UPS Store, PostNet, Postal Annex, or any locally
owned mailbox rental company.
II. Private Mailbox
A private mailbox store can receive packages from all carriers such as USPS, UPS,
or FedEx. This is in contrast to a PO Box at the post office where only USPS mail is
accepted.
Additionally, with a private mailbox:
• You get a real physical street address.

25
• Mail and packages are signed and held securely by the provider, so less
chance of theft.
• They offer additional business services that may come with the mailbox
rental, such as a fax, copy, and packaging services. It’s like a convenience
store for businesses.
• 24-hour access to your physical mailbox so you can pick up mail when it’s
convenient for you.
• The cheapest option to get a commercial address.
• Pick up packages without paying extra fees.
• What are the Disadvantages of a Private Mailbox?
• You have to physically travel and pick up your mail and packages at the
location. This is extremely inconvenient as you have to go to the location to
check for mail. If there’s no mail, then you have wasted time making that
trip.
• If you travel far away or if you will be gone for long periods, you will not be
able to access and check your mail promptly.
• Who Will Benefit Most From a Private Mailbox?
• A private mailbox is a convenient option for anyone who lives very close to
the mailbox store. It is also very cost-effective as mail and packages can be
picked up without paying extra fees.
III. Virtual Office Space and Business Center
A virtual office is a collaborative work environment that is a departure from the

traditional office scenario in which office space is leased, manned and equipped.
A virtual office in a serviced business centre is a service designed to present a
professional image without the extra expense in managing the facility.
Both virtual offices and business centres offer workspace solutions that include a
commercial mailing address. You can rent the office spaces to help make your
startup or small business appear larger and more established.
What are the Advantages of a Virtual Office Space and Business Center?
Virtual office space will provide you with a professional business address, mail
handling services, a local phone number, call handling/receptionist services, and
meeting and conference spaces which can be rented out on an as-needed basis.

26
A business centre will offer individual offices for local representatives of large
companies, professionals, and startups with shared lobby space, conference
rooms, support staff, telecommunications services, office equipment, and other
amenities.
What are the Disadvantages of a Virtual Office Space and Business Center?
Cost is the biggest disadvantage of virtual office space and business centre. A
virtual office or business centre is a good alternative for those looking to save
time and money in recruiting business resources, but the cost is more than other
business address options. You are also paying for services you may not need.
Who Will Benefit Most From a Virtual Office Space or Business Center?
The features and flexibility of a virtual office can benefit most if you are looking
for the following:
• If you want a “home base” for your business locally with clients and
partners.
• If you want the professionalism of a receptionist and support staff without
the cost of hiring them.
• If you need a physical space to conduct meetings or meet with clients.
IV. Coworking Spaces
A coworking space is a shared workplace for individuals to work in. It is usually

used by freelancers, startup founders, and digital nomads as a place to work away
from home.
What are the Advantages of a Coworking Space?

The main advantage of a coworking space is the collaboration, community,
sustainability, openness, and accessibility that space provides to the people.
Perhaps the most appealing aspect of coworking is the creative environment and
the sense of community from like-minded professionals. A coworking space is
usually full of entrepreneurs, which can help build valuable networks, support
systems, and learning opportunities.

27
What are the Disadvantages of a Coworking Space?

A coworking space is an expensive option but is still cheaper than renting your
own space. Another downside of coworking spaces is that you will receive the
same distractions as in a normal work office environment. It is best to consider
your personality and work style before selecting a coworking space.
Who Will Benefit Most from a Coworking Space?

The features and flexibility of a virtual office can benefit most if you are looking
for the following:
• If you want a physical location to work at every day.

• If you need a physical space to conduct meetings or meet with clients.
• If you want a physical space to run events, workshops, lunches, and other
learning or social activities for your members or team.
• If you value belonging to a community, accessibility and sustainability with
other entrepreneurs and freelancers.
V. Commercial Office
Commercial offices are usually located inside shopping malls, professional office
buildings, retail plazas, and free-standing buildings. Depending on your financial
capability and strategic needs, you may either purchase a property or rent a
commercial property.
What are the Advantages of a Commercial Office?

A commercial office option provides a business with a real physical space, which
allows you to house employees and service, walk-in customers.
The Disadvantages of Commercial Office Space

The biggest downside of using a commercial office is the huge monthly expense
needed to maintain the space. It is likely the most expensive option listed here.
Another disadvantage is the inconvenience caused by relocating your business to

another location. If your business happens to do very well and grows big, you may
need to move to a larger office. When this happens, you need to update your
mailing address with all your vendors and customers. Otherwise, you may miss

28
any incoming bills or checks, which will adversely impact your business operations
and cash flow.
Who Will Benefit Most from a Commercial Office?

If you plan to have employees or walk-in customers, a commercial office would be
the best option.
The decision to lease or purchase an office space will depend on many factors
such as taxes, financial capability, and growth rate. It’s best to consult a
professional to guide you towards the best solution for your situation.
Conclusion
Taking into consideration the time and cost of each option, a virtual mailbox
provides the best value and utility for a startup business. It is perfect for those
who do not need a physical office and can run their businesses remotely.
Even if you do need a commercial office, perhaps for walk-in customers or to

house employees, a virtual mailbox is still a great way to maintain a permanent
mailing address so that if you do need to move due to growth, you do not need to
worry about updating your address with all your vendors and customers.
Need a Physical Office Address in the US?

Yondaa can facilitate a temporary address to support your business formation, as
well as help to arrange a flexible service office via our co-working and month to
month deicated office partners throughout the US. For more information on
options, contact us at https://yondaa.com/about-us/

29
C) Filing Documents with State
If you opt to formation a c-corporation, the filling of incorporation documents

with state or federal government is required. As part of our U.S company
formation services, we will file these documents on your behalf. This is part of our
incorporation service.
D) Obtaining an EIN Tax ID
An EIN Tax ID is required by the IRS and U.S Banks to track your business
associated income and operate your business legally. As part of our U.S business
formation services, we will obtain an EIN on your behalf. This is part of our
incorporation service.
E) Registered Agent Services
If you’re forming a corporation or a limited liability company, you’ll need to select

a registered agent for your business and provide the agent’s name and address on
the formation documents you file with the state. We can provide this service on
your behalf. We offer registered agent services in 50 states.
F) Bylaws and Resolutions
Bylaws and resolutions are the initial decisions of your corporation's board of
directors and basic "operating rules" of your corporation. As part of our U.S
company formation services, we will provide initial drafts of these on your behalf.
This is part of our incorporation service.
G) U.S Business Bank Accounts
As part of our incorporation services, we will work with affiliated partner banks to
submit and support the delivery of your company documentation to support the
setup of your business bank account. Our partner banks will work directly with you
to complete the application and setup process.

30
H) International Document Delivery
As part of our service for international clients, where you select the option for a
corporate kit, we will deliver your business incorporation documents, EIN tax ID
forms and any additional selected supplements to you anywhere in the world as
part of our service offering.
Apply online today - https://yondaa.com/us-company-formation-services/

31
6. Length of Visa’s & Eligible Countries
The maximum length for which an E-1 or E-2 visa can be issued to a citizen of the
United Kingdom is 5 years. However, whether or not to issue for that length of
time is solely the judgment of the consular officer deciding the case.
In London, we typically issue the first E-1 or E-2 for three years. We do so because
most of the businesses we see are relatively small and small businesses are
volatile and often do not succeed. If we renew an E-1 or E-2 visa, we generally do
so for the maximum five years although not always.
In the case of large companies with high turnover and employing many U.S.
citizens, we sometimes issue the first visas for five years.
For Non-UK Citizens
For citizens of other E1 or E2 eligible countries, visa lengths vary depending on

reciprocal agreements.
Eligible Countries
• Eligible Treaty Countries - https://travel.state.gov/content/travel/en/us-

visas/visa-information-resources/fees/treaty.html

32
7. Interview Documents for E-1 & E-2 Visa’s
Where an interview is secured, employees of Treaty Trader (E-1) and Treaty

Investor (E-2) businesses are required to bring the following documents to their
visa interview:
• Confirmation page of the application form DS-160;

• Completed Form DS-156E: Each E-1/E-2 employee applicant is required to
fully complete all parts of the DS-156E;
• Appointment confirmation page (if relevant);
• A passport or other travel document: The passport or travel document
must be valid for at least six months beyond the holder’s stay in the United
States and contain at least one blank page. The six-month requirement
does not apply to United Kingdom passports. For other nationalities, please
click here. (PDF – 57 KB). If your passport is damaged, we recommend that
you obtain a new passport before applying for the visa to avoid any delay in
the processing of your application;
• One 5 x 5 cm (2" by 2") colour photograph taken within the last six months:
If a photograph has been successfully uploaded to the DS-160, an additional
photograph is not required. If there are any issues with the uploaded
photograph, however, a new photograph will be required which may delay
visa processing;
• Evidence of the applicant’s status in the United Kingdom, if not a U.K or EU
passport holder;
• Evidence of previously issued U.S. visas: If you are no longer in possession
of the passport(s) containing the visas, you may advise the consular officer
at the time of your interview;
• A detailed job description letter which includes a description of the
company; their role in the company; their salary, allowances, benefits and
other compensation they will receive; their qualifications for that job; and
the company’s contact information;
• An organizational chart reflecting their position in the company with clearly
delineating lines of authority;

33
• A current curriculum vitae or resume;

• A copy of educational certificates, diplomas and/or transcripts;
• A copy of the approval letter for the registered treaty company;
• A signed and dated statement of intent to depart the United States upon
the termination of nonimmigrant E treaty legal status;
• A photocopy of the I-797 Notice of Action authorizing the change of status
granted by USCIS if residing in the U.S. without a valid E visa;
• A copy of a name change by deed poll, if a name has been changed; and
• If they have ever been arrested, cautioned, convicted, a police certificate
known as an ACRO. The Rehabilitation of Offenders Act does not apply to
U.S. visa law.
• If they have a medical condition that could have a bearing on their eligibility
for a visa, a letter from their physician which discusses their current state of
health. Click here for further information;
• If they have been denied entry into or deported, or removed from the
United States documents relating to this. Click here for further information
Fees
Some nationalities are required to pay reciprocal issuance fees. While there is no
reciprocal fee for U.K. E-1 principal applicants and their dependents, E-2 principals
& dependents must pay $105. The fee is payable to the Embassy cashier on the
day of the interview.

34
8. Where and How to Apply
For applications from the UK follow the following steps - (For other E1 & E2
elligible countries check appendix section for local embassy websites)
Step 1 – Complete the online visa application form DS-160;

Step 2 – Go to the Visa Appointment Service website
Step 3 – Electronically submit the supporting documents.
Review
Only when steps 1 – 3 have been completed and the application has been
received by the E-Visa Unit will the case be accepted for review. The applicant
and/or legal representation will be sent an email confirming receipt of the case.
At this point, the E-Visa Unit will not accept any unsolicited additional documents.
Cases are reviewed by the E-Visa Unit to ensure that they meet the requirements
found in 9 FAM 402.9. Cases are reviewed on a first-in, first-out policy based on
when the case is found to be complete. Additional documents may be requested
during the review process. The current review time for each case is 45 days.
Please plan when considering an application for an E visa as it is not possible to
expedite the case.
Once the review is complete, the applicant or legal representative will be:
• notified that the case has been reviewed;

• provided a list of any additional documents required; and
• advised of appointment availability.
Applicants must/must attend an interview within three months (90 days) of this
initial notification. Cases will not be held longer than 90 days.

35
9. Our Company Setup Services and Prices
Starting a new business abroad can be a daunting, complex and expensive process
that takes time, resources and capital. We offer the most cost-effective,
comprehensive digital incorporation services available for international
companies seeking to set up in the U.S on an E1 or E2 investor visa, removing
months of research and costly legal services allowing you to focus your time and
resources on the business itself as well as your immigration visa application.
Our Business Incorporation Services
Our U.S company formation services include everything you need to get your
company up and running, including filing your incorporation documents with the
state, obtaining an operating agreement & EIN tax ID for your business, mail
delivery, forwarding and handling and registered agent services for your business
as required by state law. Yondaa’ s services provide everything you need to legally
establish your US business.
What we Don’t Do
Yondaa provides the services to set up your company in the U.S as part of your E1
or E2 application process, but what we do not do is provide legal advice,
represent you or your firm or provide services related to your visa application.
Our Rates and Prices
For pricing information visit - https://yondaa.com/pricing/

36
10. Appendix
Sources of Information
• US Embassy in UK - https://uk.usembassy.gov/
• US State Department Visa Office - https://ais.usvisa-info.com/en-GB/niv
• Consular Visa Application Center - https://ceac.state.gov/ceac/
• Eligible Treaty Countries - https://travel.state.gov/content/travel/en/us-visas/visa-

information-resources/fees/treaty.html
• List of US embassy websites for E1 & E1 applications - https://www.usembassy.gov
• Yondaa, Inc - https://yondaa.com/us-company-formation-services/
Contact Us
Yondaa, Inc.
2 N Central Ave #1800
Phoenix, AZ 85004
United States of America
contact@yondaa.com

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1

Setting up an E1 or E2 Company in the U.S

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

Our U.S Formation Services for International Companies

This white paper is intended to document Yondaa company formation services to

The E1 & E2 Treaty and Investor Visa Overview

Treaty trader/investor visas can be renewed or extended only if the investment or

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

E-1 Treaty Trader Visa Example

E-2 Treaty Investor Visas Example

How Does Yondaa Fit into This?

Who Are We?

Purpose and Intent of this White Paper

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

Treaty Traders and Treaty Investors (Owners)

Forming your U.S Company

Step 1 – Complete the online visa application form DS-160;

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

Step 3 – Electronically submit the supporting documents. Instructions concerning

• Notified that the case has been reviewed;

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

3. Treaty Trader Visa (E-1)

E1 Treaty Trader Visa Summarized

Putting together the Visa Application File

Section A (Table of Contents and Cover Letter)

• that the requisite treaty exists (9 FAM 402.9-4(A));

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

• If applicable, please submit a letter of agreement between the treaty trader

Section C (Applicant Information)

• A colour photocopy of the biodata page of the principal applicant's

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

• A copy of educational certificates, diplomas and/or transcripts; and

• A spreadsheet listing every qualifying transaction of international trade

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

4. Treaty Investor (E-2)

E2 Treaty Investor Visa Summarized

Putting together the Visa Application File

Section A (Table of Contents and Cover Letter)

• Requisite treaty exists (9 FAM 402.9-4(A));

• Applicant, if an employee, is destined to an executive/supervisory position

• DS-160 Confirmation Sheet: All E-2 principal investor applicants and

• If applicable, please submit a letter of agreement between the treaty trader

Section C (Applicant Information)

• A colour photocopy of the biodata page of the principal applicant's

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

• A copy of any changes or extensions of status granted by USCIS (Form I-

• Articles of Incorporation (for corporations), Articles of Organization (for

• If the investor is a public company with many shareholders, none of whom

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

• A detailed breakdown, or spreadsheet, of all funds invested into the U.S.

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

Section F (Real and Operating)

• Evidence that the business if real and active. For example:

• Evidence that the business is more than a marginal enterprise;

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

5. Setting up your U.S Company

Company Incorporation Services

A) U.S Company Structures

The principal advantage of a sole proprietorship is the ease involved in forming

https://www.yondaa.com - +1 (480) 719-1052 - © 2019 Yondaa, Inc. All rights reserved.

The main disadvantage of a sole proprietorship is that the owner is personally

A second disadvantage is the lack of anonymity. Everyone knows, or can readily