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If I want to run a bootstrapped startup while living in Taiwan that sells to mostly US based businesses, but is developed by 1099 contractors in Asia (which have a 15 year amortization period I believe?), is there a new "best country" to open the company in? Singapore? HK? Taiwan?
If it was me, I'd keep everything under the US system until you're profitable enough to hire an expert and not ask on HN.
Also if you're going to raise investment, I would stick to the USA.
You might get into legal or hiring issues if you only get contractors though.
Not an expert... but foreign investments require extra paperwork and tax for you at a minimum. If it was me, I'd keep everything under the US system until you're profitable enough to hire an expert and not ask on HN. Also if you're going to raise investment, I would stick to the USA. You might get into legal or hiring issues if you only get contractors though.
I run a business in HK, and generally it’s incredibly easy. Easy to set up, accounting is easy, ongoing fees are fairly low. So far I haven’t encountered any issue. But I’m well aware of the political issues being registered in HK might bring, and some (especially US) businesses might be wary of doing business.
How are the tax (filing and actual $ burden) complications of being a a majority owner of a foreign corporation?
US citizens involved with foreign businesses must file various reporting forms, including Form 5471 and Form 926 (foreign corporations), Form 8865 (foreign partnerships), Form 8858 (foreign limited liability companies), Form 3520 and Form 3520-A (foreign trusts), and FBAR. Form 8832 enables a foreign limited liability company to elect to be classified as a corporation, partnership, or disregarded entity for US tax purposes. Failure to timely file a required reporting form can subject a US citizen to significant civil and criminal penalties.