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Ask HN: Where should I incoporate my business

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Re: Ask HN: Where should I incoporate my business

#31

Post by nevodavid10 »

petesergeant wrote: post #30

I'm incorporated in Isle of Man. Stripe isn't available, but others are. 0% tax, it absolutely looks like you're incorporated in the UK for anyone who doesn't know what to look for (UK phone number, VAT number, UK-looking address, UK sort-code, etc). Banking is a PITA, but I've been making it work with Wise. You'll probably shell out at least $5k a year in accountancy and service fees. Also it's small enough that you…

This is interesting! Do you know any payment providers that work with them? BlueSnap / Paddle etc? How much did it cost you to incorporate?

Re: Ask HN: Where should I incoporate my business

#32

Post by otterz »

izebear wrote: post #27

Maybe a Ltd in Cyprus is a good option. Corporate tax rate is 12,5% with exceptions for income from outside the country. And it is near Israel and in the EU.

Also Bulgaria, Romania for the same reasons: low corporate tax rates, not that far away from Israel.

Re: Ask HN: Where should I incoporate my business

#33

Post by petesergeant »

nevodavid10 wrote: post #31
petesergeant wrote: post #30

I'm incorporated in Isle of Man. Stripe isn't available, but others are. 0% tax, it absolutely looks like you're incorporated in the UK for anyone who doesn't know what to look for (UK phone number, VAT number, UK-looking address, UK sort-code, etc). Banking is a PITA, but I've been making it work with Wise. You'll probably shell out at least $5k a year in accountancy and service fees. Also it's small enough that you…

This is interesting! Do you know any payment providers that work with them? BlueSnap / Paddle etc? How much did it cost you to incorporate?

I googled it, and it turns out my former accountant (who I'd highly recommend) maintains a list: https://www.katzand.co/isle-of-man-payment-gateway/

Incorporation is cheap (if I remember correctly?), but you basically need a service provider to sign off on your accounts, VAT, and so on, so the cost is more ongoing expenses than setup costs.

Send a WhatsApp or email to Katz & Co from the link above -- they'll be happy to break it down, they're super nice, and they're very on the ball too.

Re: Ask HN: Where should I incoporate my business

#34

Post by silkpool »

nevodavid10 wrote: post #5
muzani wrote: post #2

If you're living in Thailand, how about Singapore? Corporate tax at 17%. Personal tax capped at 22%. Incorporation cost seems quite cheap, but you might want to ask them directly. They're a startup launchpad for a good reason. Plenty of American and Asian investors & acquirers. The latter is more valuable now as American investors struggle with the economy. Also really good finance infrastructure. Stripe has trouble…

Interesting! Thank you for the answer. But taxes seem quite high. I am aiming to incorporate something more like an LLC without paying corporate taxes - it's not far than what I pay for Delaware (21%)

SG corp tax is 0% if the transaction happens overseas. https://www.iras.gov.sg/taxes/individual-income-tax/basics-o...

Re: Ask HN: Where should I incoporate my business

#35

Post by fauigerzigerk »

nevodavid10 wrote: post #7
fauigerzigerk wrote: post #4

Earlier quoted context omitted.

>Personal tax capped at 22% You generally pay personal taxes where you live, not where your company is incorporated.

I guess he means if the US entity employs you. Then you will probably pay this + the rest in your home country if there is a double taxation treaty (and taxes are higher).

Double taxation agreements are not a way to cut your tax rate. They are usually structured in a way that makes sure you pay the higher of the two tax rates.

Also, companies cannot directly and permanently employ people living and working in other countries without having a legal establishment there acting as the employer. Without a local legal entity to employ you, you'd have to register as self employed and then it doesn't matter for personal income tax where your customers are (It may matter for VAT though).

Some countries offer various temporary exceptions for expats, but the general rule is that you pay personal income tax and social security contributions in your country of residence.

Re: Ask HN: Where should I incoporate my business

#38

Post by nlitened »

Would you consider Cyprus?

A member of European Union, EUR currency, 12.5% corporate tax (for most software businesses could go as low as 2.5%). You collect and pay VAT only for European customers, otherwise no VAT. Supported by Stripe.

Foreigners pay 0% dividend tax. Rather low setup and maintenance costs, can effectively have no physical presence in the country. Most documents are in English.

Good climate, too, if you get to visit (visit not required for company setup). Hit me up if interested, I am very happy myself with it.

Re: Ask HN: Where should I incoporate my business

#40

Post by throwaway318 »

nevodavid10 wrote: post #17
throwaway318 wrote: post #8

Earlier quoted context omitted.

Why Singapore and not, say, Wyoming that has no corporate tax. Personal tax isn't paid if you're not tax resident, and OP seems to be resident in Thailand so will have to follow relevant laws there. If ASEAN free trade's of benefit, perhaps. Or if going for a Singapore ID card then having a profitable business might be worth it. Or access to SE Asia finance. Outside these, Wyoming!

I have head quite much about Wyoming! What's the difference between Wyoming and Delaware for LLCs?

I can't run blow for blow what'll work for you.

https://taxfoundation.org/location/wyoming/

https://taxfoundation.org/location/delaware/

For example.

But it's not just about tax. For privacy and having a Delaware-like specific business litigation process should you ever need it, Nevada's advantageous over Wyoming without needing much more in tax. Then for access to finance, a location that'll let you open a bank account for the business can be important (this might depend on US state). So there's a bit of YMMV, but nothing an Ask HN can't fix!

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