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CHAPTER II ESTABLISHING AN IMPORT BUSINESS

CHAPTER II ESTABLISHING AN IMPORT BUSINESS. Reasons for Importation Requirements for a Successful Import Business Legal Forms of a Business Import Organizations. Reasons for Importation. Products unavailable in the domestic market Products cheaper than domestic market

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CHAPTER II ESTABLISHING AN IMPORT BUSINESS

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  1. CHAPTER II ESTABLISHING AN IMPORT BUSINESS • Reasons for Importation • Requirements for a Successful Import Business • Legal Forms of a Business • Import Organizations

  2. Reasons for Importation • Products unavailable in the domestic market • Products cheaper than domestic market • Products better quality than domestic market • Better Financing than domestic market

  3. Requirements for a Successful Import Business • Selling ability • Reliable suppliers • Financing ability • Knowledge of import procedures and regulations • Persistence • Clear communication • Trust building with suppliers and buyers

  4. Legal Forms of a Business • Sole proprietorship: Sole owner • Business license • Registration of fictitious name with the County & Ad 3 times in local newspaper • Unlimited liability. No double taxation • Partnership • General partner: Unlimited liability • Limited partner: Limited liability • Pass-through taxation (No double taxation)

  5. Legal Forms of a Business • Corporation • C corporation: Limited liability. Double taxation • S corporation: Limited liability. Nodouble taxation. Up to 100 shareholders. Family members single shareholder

  6. Legal Forms of a Business • LLC (Limited Liability Company) • Limited liability. • No double taxation • May have one or more owners called Members • May be owned by any combination of individuals and business entities • Files Articles of Organization with the State • No minutes & No annual meetings required

  7. Import Organizations • Import agents (Commission Agents) • Assume no title • Fewer than 10 employees • Carry Catalogs and samples of exporters • Import dealers • Do not carry stock • Directly from harbor to domestic buyers • Usually take title to the goods

  8. Import Organizations • Import distributors • Products requiring after-sales service • Large inventory • Large organization • Sometimes owned by a foreign manufacturer • Advertising and promotion

  9. Import Organizations • International trading companies • Large organization • Good marketing coverage and financial ability • Control domestic distribution networks • Importing arm of exporters • Japanese Sogoshosha • Manufacturers • Augment their product lines • Raw materials • Components

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