Immigration issues
New Zealand citizens can make casual business trips to the US on a B-1 multiple entry visa. Casual trips would include travel to assist with a pilot project, implement a new system for a customer or a sales trip.
New Zealand citizens cannot receive compensation from a US customer while on a B-1 multiple entry visa. Structure the trip so that the US company reimburses the New Zealand company for any expenses.
New Zealand citizens wishing to live temporarily in the US may apply for an L-1 visa (Intracompany Transferee) but should seek advice from an immigration lawyer before proceeding.
Business structure
Establishing a corporation is the most common structure, usually in the same state as the office is located. Other options are a limited liability company or a branch. It is important to gain tax and legal advice before deciding on the most appropriate structure for your company.
There are various models for structuring how the New Zealand company trades with the US company including:
- the US company acts as an agent of the New Zealand company and earning a commission on sales
- the US company acting as an independent distributor buying product from the New Zealand company and re-selling it
- how New Zealand staff in the US are paid (salary, performance bonus or equity in the US operation) may affect the business structure.
Ensure relevant contracts and other documents are reviewed by a lawyer.
Insurance
There are two principal risks when doing business in the US: products liability or professional indemnity claims and the risk of a visitor on a B-1 visa causing personal injury or property damage.
The company should obtain New Zealand insurance for these risks. If a US office is established, a wide range of insurance protection will be needed.
Patents and trademarks
Ask a patent lawyer to audit your company’s intellectual property and advise on relevant protection. You should also obtain a US trademark registration for the brand name you select.
