Best Setup for Junk Car Removal non-usa citizen

nitehawk said:

Would this person and office also need to be in Wyoming? Or can be anywhere in the USA

Some don't care. Some care but now it's for different reason than out of region processing (since all of the US is one region for Visa/Mastercard).

I've seen a handful of cases where processors have checked for/requested proof that your out of state LLC is registered as a foreign LLC in the state where the CEO and/or operations are located.

If not in Wyoming, at least be prepared for having to explain why. Worst case, go register it at as a foreign LLC.

nitehawk said:

so if I hired a ceo / manager would I still need a nominee director or would this person be the ceo/director? I think we should also use their personal residential address as the business physical address.

Depends on what you mean by nominee as it can mean a lot of different things. Some processors don't accept managers that are also managers/directors of dozens/hundreds of other companies. That's a limitation of using common nominees provided by corporate service providers, versus hiring your own employee or sourcing your own nominee. There's also a risk that the nominee is already blacklisted by the processor or by the card schemes themselves, if a previous client has used the nominee irresponsibly.

No worries, let's get the terminology right and consistent.

LLCs do not have formal directors. They have managers. Functionally almost the same as a director, though.

Just like how a CEO doesn't have to be a director, they don't have to be a manager when they are CEO of an LLC. However, in your case, it would make sense for the CEO to be a manager of your LLC.

If your CEO is the manager of your company and they are resident in the US, you probably don't need a "nominee" as well. In this context, a nominee is essentially just a manager that you share with several other companies. Those types of nominees tend to be cheaper but you don't get the benefits of having a dedicated person.

nitehawk said:

What's the best service for hiring a ceo / manager?

If you know someone or know someone who knows someone, that's easiest. If not, put up job ads on the usual job boards.

nitehawk said:

I don't need an actual employee just someone to open bank accounts and processors for me.

Thing is, what you're proposing and trying to do is abnormal.Abnormal sticks out and leads to problem sooner or later. If you're going to be processing millions USD/month and you don't have a place of business that makes sense, a lot of financial institutions will get uneasy. The more normal you can present your business, the less you stick out. The less you stick out, the more stable things will be.

I agree with @Sols on all that he has written.

And especially this

Sols said:

Since you're dealing with physical goods and physical services, you are likely limited to processors in the US. Even if you get payment processing set up under your Cyprus or UAE company, there is a very high risk you'll be kicked out after the acquirer sees you're getting nearly 100% US cards/customers and have operations in US. Card processors in EU and UAE are licensed for merchants domiciled in EU and UAE. If a US merchant sets up a merchant account in EU or UAE, the processor risks fines and penalties from Visa/Mastercard.

is an important point and I have overlooked it somehow. (Well, I am really not so experienced expert re: payment processing ;) )

nitehawk said:

i talked to a consultant for this and they said they can put out job postings for a CEO and help me find someone cost 3k usd. And suggested we pay this individual 20k usd per year salary.

Would it be best if this CEO was in Wyoming and we used this persons personal address as our physical location?

It's nice but not strictly required. Worst thing that might happen is you have to explain why the CEO isn't in Wyoming and maybe register the LLC as a foreign LLC in the state of residence of the CEO.

nitehawk said:

Do this sound reasonable?

The amounts mentioned sound reasonable.

nitehawk said:

I managed to find an old friend in Chicago. Do you think this is ok given the company is incorporated in Wyoming? Does that matter? He is willing to use his personal address as the physical business address.

As mentioned above, there's a chance most processors won't care and that those who do might just want an explanation.

At the end of the day, I can't say for sure. I'm just looking at this from the perspective of a financial institution/payment processor reviewing it critically. The rules are one thing. Personal opinion of individual compliance officers is another, that's harder to predict.

nitehawk said:

If hire him as ceo to manage things what type of contract and stipulations are important that I put in this contract?

I'm probably not the right person to answer this since it's teetering on legal advice and employment law. You might need to check whether your friend in Chicago becomes an employee of the company and what that means in terms of payroll obligations which in turn affects how the agreement should be structured.

In many cases, though, it's enough to have a very simple agreement whereby the members of Xyz LLC appoint Mr Abc as manager of the LLC for a remuneration of 20,000 USD per annum, for example. In that agreement, state that each party is responsible for its own taxes and also outline the terms under which the LLC may dismiss Mr Abc as manager. These can probably be very generic and broad.

It's probably worth asking a good tax/employment lawyer about these things. If things ever get sour between the CEO and you, or between the state and the LLC, having clarity from the get go can save you a lot of future headache.

nitehawk said:

i talked to a consultant for this and they said they can put out job postings for a CEO and help me find someone cost 3k usd.

I. e. like ~10 hours of work of a qualified personnel + some overhead. It makes sense.

nitehawk said:

And suggested we pay this individual 20k usd per year salary.

Well, it depends on what tasks you want to assign to him. If just managing the bank accounts, it's IMO quite generous; but I have no clue how big your business is. You probably can get it even for a half but it is a question how much 10k/year means for your business.

nitehawk said:

Do this sound reasonable?

IMO, generally, yes: see above.

nitehawk said:

Would it be best if this CEO was in Wyoming and we used this persons personal address as our physical location?

IMO the crucial factor is the office address, it should be in WY.

nitehawk said:

I managed to find an old friend in Chicago. Do you think this is ok given the company is incorporated in Wyoming?

Why not but see below.

nitehawk said:

Does that matter? He is willing to use his personal address as the physical business address.

I would not recommend. The office address should be in the state of the incorporation. Either rent a cheap office somewhere in Cheyenne or register in Illinois, as @Sols has proposed.

Sols said:

The rules are one thing. Personal opinion of individual compliance officers is another, that's harder to predict.

I agree in full. So I'll always recommend to build the setup as solid as possible; because you are definitely not always given a chance to correct something.

nitehawk said:

If hire him as ceo to manage things what type of contract and stipulations are important that I put in this contract?

Sols said:

I'm probably not the right person to answer this since it's teetering on legal advice and employment law. You might need to check whether your friend in Chicago becomes an employee of the company and what that means in terms of payroll obligations which in turn affects how the agreement should be structured.

In many cases, though, it's enough to have a very simple agreement whereby the members of Xyz LLC appoint Mr Abc as manager of the LLC for a remuneration of 20,000 USD per annum, for example. In that agreement, state that each party is responsible for its own taxes and also outline the terms under which the LLC may dismiss Mr Abc as manager. These can probably be very generic and broad.

It's probably worth asking a good tax/employment lawyer about these things.

I'll just add that from what I recall, labour law in Illinois, and Chicago especially, tends to be a little complicated, company law too. So I'd ask a local lawyer in Chicago or at least in IL. And to be able to give a well-founded advice, a deeper knowledge of how do you really run your business is also necessary, IMO.

Sols said:

If things ever get sour between the CEO and you, or between the state and the LLC, having clarity from the get go can save you a lot of future headache.

I second that.