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What is the company/broker/authority called that engages business between two unknown parties?
Anonymous3 views3 answers
I'm setting up an electronics company in Michigan, USA. Most probably sole proprietorship or LLC. I am importing my electronics from Europe. I'm not familiar with the companies if they are legit or not over there. My main concern is, just like letter of credit concept, is there any authority, business or company in USA that works as a broker to import items, verify the supplier and make the payment on my behalf after receiving and verifying the consignment? If yes, what is it called and whats the process? I do not want any scams. Please help
You need an import broker who works with a bank experienced in International trade. The situation you describe is faced every day by importers who want to assure that goods are valid before payment is sent. This is accomplished through using letters of credit which require inspection of goods before funds are released.
Yes, there are brokerages which work in this area. Indeed if your proposed supplier is legitimate it is likely the are already working with some. Seek counsel or it is possible you will be scammed.
A sole proprietor and an LLC are VERY different. I recommend talking with an attorney to set up your business properly. An LLC is a much better choice as it will offer you some protections. You will likely need a trusted attorney when dealing with contracts anyways, thus it will be helpful to find a trusted attorney now. And as was said you will need an international broker. Good Luck,
~Katie
