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Ask HN: Founders of estonian e-businesses – is it worth it?

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121–130 of 141 posts

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#121

Earlier quoted context omitted.

183-days rule is NOT a thing in germany for corporate taxes, and I think it is not in income taxes either. It may be an indicator, but it is not a hard proof. Important is, where you have your social life set up ("Lebensmittelpunkt"). That is, you can reside more than 183 days abroad, but if you have a family, golf club membership, permanent residence, your stock brokerage account etc. still in germany, you still cou…

Its a little bit more complicated: https://www.vlh.de/wissen-service/steuer-abc/183-tage-regelu...

That articles refers to employees (Arbeitnehmer) which is something completely different.

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#122
I was an e-resident for 10 years, had a company and paid all taxes, but this year they refused to prolong it due to my nationality. So, I don't recommend Estonia at all, they can easily screw you over at any time. :(

Since I'm looking for a replacement atm, what's the best US state to register a simple and cheap LLC for a foreigner?

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#124

Earlier quoted context omitted.

For Japan in specific, you’ll want to look into JCFC. Not a tax or legal advice, but IIRC it boils down to: if your company (assuming 100% ownership) is paying less taxes than a Japanese company would, and you’re a Japanese tax resident, you would need to pay the difference in Japan. It is probably similar in other jurisdictions that have CFC laws. Also do read up on permanent establishment rules as well.

Ah, sorry. I was using Japan as an example of "living somewhere very far outside of the EU" to highlight the sense of distance between the two. I have listened to a little bit about how difficult it is to open a business in Japan (as a foreigner, at least) and how stressful tax time can be [1], but I'm not well versed in the specifics of how they do things. [1] https://youtu.be/XpvTyyfcBaw?t=416

Japan as an example of anything not specific to Japan is problematic.

Almost nothing is handled in a similar means or approach to Japanese standard practices, anywhere else.

Speaking as someone with 30+ years experience in both Japanese and non-Japanese business dealings and having had and being currently in the process of renewing work and residence permission in Japan under a different classification than before, and having visa sponsors who just finished 'Tax Season' there; the system is both at once extremely linear, and somehow opaque, and the actual paperwork is more easily measured in centimeters than in numbers of pages.

However; that being said, the actual costs of taxes and other fees including retaining the services of an administrative scrivener (not quite the same as a paralegal accountant) are very logical and reasonable for the resultant social/infrastructure outcomes.

But, if one is not already fully fluent in Japanese and does not have a driving requirement to reside and do business in Japan; the system is simply not designed for participation from the outside like the EU or US. When foreigners attempt to participate directly, even the Japanese know that the local system is complex in puzzling ways, and the most common comment I have personally observed is, "Why would you voluntarily do this; we all do it because we must, but if you don't have to, WHY?"

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#125

Earlier quoted context omitted.

Ah, sorry. I was using Japan as an example of "living somewhere very far outside of the EU" to highlight the sense of distance between the two. I have listened to a little bit about how difficult it is to open a business in Japan (as a foreigner, at least) and how stressful tax time can be [1], but I'm not well versed in the specifics of how they do things. [1] https://youtu.be/XpvTyyfcBaw?t=416

Japan as an example of anything not specific to Japan is problematic. Almost nothing is handled in a similar means or approach to Japanese standard practices, anywhere else. Speaking as someone with 30+ years experience in both Japanese and non-Japanese business dealings and having had and being currently in the process of renewing work and residence permission in Japan under a different classification than before, a…

I’d assume most foreigners are doing this because they want to live in Japan :-) I was researching it for the very same reason.

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#126

I was an e-resident for 10 years, had a company and paid all taxes, but this year they refused to prolong it due to my nationality. So, I don't recommend Estonia at all, they can easily screw you over at any time. :( Since I'm looking for a replacement atm, what's the best US state to register a simple and cheap LLC for a foreigner?

I am sorry, but under the current circumstances in the US, your second paragraph sounds like satire, and I actually laughed out loud.

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#127

I was an e-resident for 10 years, had a company and paid all taxes, but this year they refused to prolong it due to my nationality. So, I don't recommend Estonia at all, they can easily screw you over at any time. :( Since I'm looking for a replacement atm, what's the best US state to register a simple and cheap LLC for a foreigner?

The classic answer is Delaware because that's what everyone else does so there are scale effects. Practically this means that Delaware's legal and banking system is extremely experienced with business customers.

At the level of having, say, a mom and pop LLC, most states are about the same, eg you need to do about the same amount of minimal paperwork to register the name, have an agent in state who can receive legal notices for you, etc. Virginia for example isn't much more work than DE.

If you really don't want to do a lot of leg work, there are services like Stripe Atlas that will do it all for you. I haven't used them but they seem to be targeting the startup/HN crowd.

Finally Wyoming and Nevada have some features of LLCs that you might find attractive, such as keeping the ownership structure out of public records. Personally, and unfairly to NV, I think of NV LLCs as slightly sketchy because for a couple of years all the ones I saw were weird businesses that promised "incredible investment opportunities!!!" in some revolutionary technology or other, thermodynamics be damned.

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#128

Earlier quoted context omitted.

Its a little bit more complicated: https://www.vlh.de/wissen-service/steuer-abc/183-tage-regelu...

That articles refers to employees (Arbeitnehmer) which is something completely different.

Yes, and if you are a company owner, you usually have a contract between you and yourself? (https://www.hensche.de/Rechtsanwalt_Arbeitsrecht_Handbuch_Ge..., "Geschäftsführeranstellungsvertrag")

So OP has to clarify on both layers: natural person himself, legal entity, and the relation between them. And the result is affected by the questions OP raised?

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#129
post #112
post #25

I've been running a saas like this for the past couple of years. I'm using Xolo which do the accounting and local representative. 99% of my bureaucracy is uploading pdf invoices to the Xolo system. Once a year I have to spend like one hour on the anual report. That's pretty much it. Every 5 years you have to renew your digital id. It costs a little money and if you are in the EU there will be a pickup location not fa…

Do you live in EU? Do you pay yourself a salary from your Estonian company, and is that your main source of income?

No, I live in Mexico. I do pay myself a salary and some months that is my main source of income.

Re: Ask HN: Founders of estonian e-businesses – is it worth it?

#130

I collected my Estonian non-citizen id card from Madrid. I found their income reports misleading and highly subjective. Plus you have to pay someone to dump the data in Estonian. You are subject to fines on a phone line. Not much security from an owner POV. I finally closed the entity which was much more expensive than opening. At the end, these kind of stuff is done so they can charge entrepeneurs heftly and through…

Overall it costs me around 60 euros a month in accounting/virtual office.

Also if you use the mobile app authenticator you can do everything needed even while your ID card has expired. I prefer to use the smartcard instead of another app, but you have that option.

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