Set up a US company with local management

[PinkCat]

I have a corporation in the US where I'm the sole owner as a foreign‌ investor (not an US citizen, not a resident). The business is buying and selling real‍ estate. I have a guy there that is supposed to do all the leg work,⁠ while I just provide the capital.
The question is how to set it up so⁤ he can buy and sell real estate in the name of the company without my⁣ signature or presence be required all the time. While not being able to divert the⁢ funds.
He will need rights to obtain cashier checks from the company bank account in︀ order to participate in real estate auctions. Work on the property (pay contractors) to fix︁ it up and then transfer the title deed to the potential buyers.
Is there a︂ way at all to set it up so he can do all those things but︃ not being able to do something stupid with the funds?
While I generally trust him,︄ anything can happen so I would prefer to have some safeguards.

Also thinking if it︅ will actually be better (and simpler) to set-up and LLC where that person and my︆ corporation are 50/50% owners (that's how we split the profits anyway) ?

 

[daniels27]

It is called dual signature:
https://firstutahbank.com/dual-signatures-and-your-business-checking-account/

You would either‍ hire two guys or add you as secondary signor.

 

[daniels27]

Yes, in this case you can both be partners.⁠

Please bear in mind, that for this setup, your US LLC will be taxable in⁤ full in the US as the work is being done in the US. You can⁣ then look into the DTA for implications on your dividends recieved etc.

 

[PinkCat]

@daniels27
1. The idea is my signature to NOT be needed all the time.
2. It is not just banking, but auctions and title deed transfers.

 

[daniels27]

You can have the corporate resolution requiring two signatures. As mentioned above, you will⁠ have to hire 2 dudes in the US for this to work without you.

Apart from that, if you give your friend the key to your house, he is able⁤ to go in. You could give him the key to your mailbox only. But if⁣ you want him to do all sort of business matter, he needs to be able⁢ to and can do this.

 

[CyprusLawyer101]

lots of banks require a confirmation of the transaction through a mobile application. so your‌ guy can do all the transactions and they can only go through if you confirm‍ the transaction through the mobile application , which should notify you to do so every⁠ time a transaction is processed. If you do not want to be bother all the⁤ time if there are a lot of transactions, you could set daily/monthly/per transaction limits (⁣ eg 3 000 USD ) for transaction which do not require authorization and can be⁢ processed alone by your guy. When you will have higher amounts going out you should︀ have to authorize the transaction to go through.

 

[forward]

or he can have a sub-account in your banking which you'll fund
plus the incorporators‌ in the USA are relatively easy

 

[daniels27]

The main problem is‌ that he wants dude to have full power to buy and sell houses. It is‍ inevitable that dude can then also but his uncle's house for a lot and resell⁠ it for cheap.

He needs to do things on his own it trust the dude.⁤

 

[alpakiwi]

One way to do it is to set up an LP entity, which is pass-through.‌ He is the GP, and you pay him according to whatever arrangement you agreed upon.‍ You are the Limited Partner of the LP and contribute just capital. That way, he⁠ has full authority to sign on your behalf (as he is the manager of the⁤ entity), and you can regulate what can be done in a Limited Partnership Agreement. You⁣ can also limit what he can or cannot do, as well as powers that require⁢ LP approval, and certain banks will let you configure the bank in such a way︀ that your digital signature is required prior to any issuance of checks or whatever --and︁ you can dynamically change that. As per the last news, even Revolut Business allows you︂ to configure this.