Basic legal consideration for swedish businesses in the usa

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About legal forms of U.S. Businesses, swedish owned subsidiary in the U.S., incorporation process, insurance issues etc.

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Basic legal consideration for swedish businesses in the usa

  1. 1. Basic Legal Considerations for Swedish Businesses in the U.S.A. Christopher N. Smith, LLC Attorney at Law 130 North Crest Blvd., Suite B Macon, Georgia 31210 USA Phone: 478-477-8145 Fax: 478-477-7823 Email: [email_address] www.cnslaw.com Macon and Atlanta appointments available
  2. 2. Caveats <ul><li>State Laws vary </li></ul><ul><li>Issues discussed “Tip of the Iceberg” </li></ul><ul><li>Labor Laws/Import requirements etc. not discussed </li></ul><ul><li>The key is doing things in the proper order </li></ul>
  3. 3. Three Pillars of Success <ul><li>Legal Strategy </li></ul><ul><li>Accounting Strategy </li></ul><ul><li>Insurance Strategy </li></ul><ul><ul><li>All must be coordinated </li></ul></ul>
  4. 4. Tax Identification Number <ul><li>Must have to open bank accounts </li></ul><ul><li>Required to Inform US Dept of Commerce that US Subsidiary formed </li></ul><ul><li>Accountant needs to know when attorney incorporates </li></ul><ul><li>Communication among all team members important </li></ul>
  5. 5. Legal Forms of U.S. Businesses <ul><li>Sole Proprietorships </li></ul><ul><li>General Partnerships </li></ul><ul><li>Limited Partnerships </li></ul><ul><li>Corporation </li></ul><ul><li>Limited Liability Company </li></ul><ul><li>Limited Liability Partnerships </li></ul><ul><li>US Branch of Non US Corporation </li></ul><ul><li>Others, Joint Ventures, etc. </li></ul>
  6. 6. Swedish owned Subsidiary in US <ul><li>Vast majority “C” corporations </li></ul><ul><li>“ C” corporation recommended due to accounting advantages </li></ul><ul><li>Not eligible for “S” corporations </li></ul><ul><li>Limited Liability Company permissible </li></ul>
  7. 7. Incorporation Process <ul><li>Name reservation </li></ul><ul><li>Filing of Articles of Incorporation </li></ul><ul><li>Publication </li></ul><ul><li>Adoption of Bylaws </li></ul><ul><li>Election of Officers </li></ul><ul><li>Organizational Minutes </li></ul><ul><li>Adoption of Seal </li></ul><ul><li>Issuance of Stock Shares </li></ul><ul><li>Adoption of Shareholders Agreement </li></ul><ul><li>Notification to U.S. Dept of Commerce </li></ul>
  8. 8. Time Frame (In Georgia) <ul><li>Normal 3 to 4 weeks </li></ul><ul><li>Expedited 1 to 3 days </li></ul><ul><li>Filing Fees $125 </li></ul><ul><li>Expedited Filing Fees $225 </li></ul><ul><li>Publication Fee $40 </li></ul><ul><li>Corporation Book $75 est. </li></ul><ul><li>Plus Legal Fees </li></ul>
  9. 9. Why Incorporate? <ul><li>Corporate Shield </li></ul><ul><li>Avoid Personal Liability </li></ul><ul><li>Reduce exposure for parent company </li></ul>
  10. 10. Liabilities <ul><li>Business and Contractual Obligations </li></ul><ul><li>Liability for Torts </li></ul><ul><li>Products Liability </li></ul>
  11. 11. Business and Contractual Obligations <ul><li>Get it in writing </li></ul><ul><li>Do not personally guarantee </li></ul><ul><li>Do not bind parent corporation </li></ul><ul><li>Signature Law important </li></ul><ul><li>Sign under correct corporate name </li></ul><ul><li>Always sign with corporate title </li></ul><ul><li>Arbitration/Venue Clause </li></ul>
  12. 12. Research Your Business Associates <ul><li>An ounce of prevention is worth a pound of cure </li></ul><ul><li>Research history of litigation </li></ul><ul><li>Lien index search </li></ul><ul><li>Judgment search </li></ul><ul><li>Bankruptcy filing search </li></ul><ul><li>Done secretly </li></ul>
  13. 13. General Insurance Issues <ul><li>General Liability </li></ul><ul><li>Protect the company </li></ul><ul><li>Protect Officers and Directors </li></ul><ul><li>Protect Business Owners </li></ul><ul><li>Product Liability </li></ul><ul><li>Reservation of rights </li></ul><ul><li>Umbrella Policies </li></ul><ul><li>Respondeat Superior </li></ul><ul><li>Workers Comp </li></ul><ul><li>Research Insurance Company </li></ul><ul><li>Read Insurance Policy </li></ul>
  14. 14. Torts <ul><li>Personal Injury </li></ul><ul><li>Auto Accident </li></ul><ul><li>Slip and Fall </li></ul><ul><li>Wrongful Death </li></ul><ul><li>Negligent Security </li></ul><ul><li>Other </li></ul><ul><li>Special Damages </li></ul><ul><li>Pain and Suffering </li></ul>
  15. 15. Respondeat Superior <ul><li>Employee within scope of employment </li></ul><ul><li>Employee causes injury </li></ul><ul><li>Employer vicariously liable </li></ul><ul><li>Adopt safety policies to reduce risk </li></ul><ul><li>Cell phone dangers </li></ul>
  16. 16. Elements of Products Liability Case <ul><li>Restatement of Torts Section 402A </li></ul><ul><li>One who sells product </li></ul><ul><li>Defective condition </li></ul><ul><li>Unreasonably Dangerous </li></ul><ul><li>Physical Harm to User </li></ul><ul><li>Or Property Damage </li></ul><ul><li>Seller engaged in business selling product </li></ul><ul><li>Product reaches consumer without substantial change in condition </li></ul><ul><li>Care not a defense </li></ul><ul><li>Privity not required </li></ul><ul><li>Strict liability </li></ul>
  17. 17. What is a Defective Condition? <ul><li>Risk Utility Analysis </li></ul><ul><li>Consumer Expectation Analysis </li></ul><ul><li>Combination of both </li></ul>
  18. 18. What is Unreasonably Dangerous? <ul><li>More dangerous than expectations </li></ul><ul><li>Average reasonable consumer test </li></ul><ul><li>Known vs. unknown characteristics of product </li></ul>
  19. 19. Products Liability Theories <ul><li>Manufacturing Defects </li></ul><ul><li>Defective Warnings </li></ul><ul><li>Design Defects </li></ul>
  20. 20. Conclusion <ul><li>Good news, U.S. offers great opportunities </li></ul><ul><li>Number one economy in the world </li></ul><ul><li>Hire team of professionals from day one </li></ul><ul><li>Legal, Accounting Insurance </li></ul><ul><li>Useful Links </li></ul><ul><li>Questions? </li></ul>

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