Legal Question in Business Law in Texas

Re: Internation Trade & Corp Structure

To answer your questions:

1. The type of business structure depends on the potential tax liability and asset protection that you need. Corporate entities are the most common. Limited partnerships are also a good candidate. I'm not fond of sole proprietorships except in very small operations.

2. Your need for an export license dependes on what you are exporting. Technology and certain chemical compounds usually require licensure. On other items, it's fact specific. I can't tell you without knowing exactly what you're doing.

3. As for whether you need an export license or not depends on where the transactions take place and to where the items are delivered. If the items are purchased by a local affiliate of the purchaser, the the local affialiation would be responsible (typically) for the export guidelines.

4. You would need a transactional attorney to create the business entity, and an international attorney to handle licensure.

5. The trade agreements may be drafted by either party. If they are approaching you, then they would likely make the first draft. If your goods are custom made, then you'd likely present the first draft. This isn't a hard and fast rule, however.

Re: Internation Trade & Corp Structure

Corporations are usually best recognized on the international scene, although there isn't anything wrong with a sole proprietorship.

If you are selling your product FOB your shipping dock, you don't need an export license unless your product is a controlled product that requires knowledge of the final recipient.

Make sure they pay by recognized letter of credit payable upon your shipping documents.