![Page 1: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/1.jpg)
Organization and US Legal Culture
by
Zachary D. Norris, J.D., LL.M.
![Page 2: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/2.jpg)
DISCLAIMER
The views and opinions presented in today’s presentation are for educational
purposes only and do not constitute legal advice. No attorney-client relationship is hereby formed.
![Page 3: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/3.jpg)
WHERE TO ORGANIZE YOUR US BUSINESS
![Page 4: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/4.jpg)
REASONS TO CHOOSE DELAWARE
1. NO PHYSICAL OFFICE ADDRESS NEEDED
2. NO OWNERSHIP DISCLOSURE REQUIRED
3. PREFERRED BY INVESTORS
4. STRONG CORPORATE LAWS
![Page 5: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/5.jpg)
DELAWARE IS NOT ALWAYS THE BEST CHOICE
• DOING BUSINESS IN A DIFFERENT STATE THAN DELAWARE?• HAVING AN OFFICE
• HAVING EMPLOYEES/AGENTS
• EXECUTING CONTRACT AND WAREHOUSING GOODS
IF ANY OF THESE ARE TRUE, YOU ARE DOING BUSINESS AND WILL NEED TO REGISTER IN THAT STATE
• KEEPING COMPLIANCE COSTS DOWN
• REGISTER IN AS FEW STATES AS POSSIBLE
![Page 6: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/6.jpg)
CALIFORNIA?
![Page 7: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/7.jpg)
WHAT STATE SHOULD YOU CHOOSE?
HERE’S FORBES’ TOP 10 STATES FOR BUSINESS:
![Page 8: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/8.jpg)
BUSINESS ENTITY TYPE
• The Corporation
• Single Shareholder Allowed
• Operated by “Officers” (not managing directors)
• Directors only sit on the board
• Cumbersome compliance and reporting issues
• The Limited Liability Company
• Liability shielded like a corporation
• Run like a partnership
• Owned by “Members” and operated by “Managers”
![Page 9: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/9.jpg)
DO WE NEED A US DIRECTOR/OFFICER/MANAGER?
• There is no state or federal law requiring a US director, officer or manager.
• But it does make it easier to set up a bank account and handle compliance.
![Page 10: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/10.jpg)
AMERICAN LEGAL CULTURE
Lets get ready to rumble!
![Page 11: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/11.jpg)
The American Rule of Legal Fees
![Page 12: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/12.jpg)
MOST CASES SETTLE!!!
Lawsuits
Settled Tried to Verdict
![Page 13: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/13.jpg)
AMERICAN LEGAL CULTURE IS ADVERSARIAL
![Page 14: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/14.jpg)
US CONTRACTING
• Do not use your New Zealand contracts in the US
• Take the Drafting Initiative
• Make sure the ENTIRE and every detail of the deal is stated in the contract
• THE BEST WAY TO AVOID LITIGATION IS TO HAVE A WELL THOUGHT-OUT AND THOROUGH CONTRACT
![Page 15: Organization and US Legal Culture by Zachary D. Norris, J.D., LL.M](https://reader035.vdocuments.site/reader035/viewer/2022081520/5697bfdb1a28abf838cb0cae/html5/thumbnails/15.jpg)
CONCLUSION
• CHOOSE YOUR STATE OF ORGANIZATION STRATEGICALLY
• CHOOSE YOUR ENTITY TYPE BASED ON THE REASON YOU ARE GOING TO THE US
• PREPARE FOR A DIFFERENT BUSINESS AND LEGAL CULTURE
• WE LITIGATE, SO DO NOT CUT CORNERS IN YOUR CONTRACTING OR INSURANCE
• CONSULT WITH YOUR ACCOUNTANTS, LAWYERS, AND SELECTUSA FOR HELP