131–140 of 208 posts
(Not a lawyer etc.) If you didn’t have a US founder I think you’d have more options, but since you do, just embrace the US - it’s will also be the easiest from a fundraising standpoint, and one of the cheaper options. I actually think the US gives you the most choices from a vendor standpoint, and is the cheapest (or one of the cheapest from an administrative standpoint). Regardless, definitely do it in a jurisdictio…
I’ve founded companies in the UK, US and EU. I’d recommend the UK. The cost of a limited company is £12. It’s formed in a day. Use https://www.ukpostbox.com if you need an address. The legal system is well known and entrepreneur friendly. Accountancy and company admin are simple and relaxed. HMRC is supportive. You can pay dividends on a flexible schedule. There’s a very large ecosystem of financial support, innovati…
As someone who tried UK, opening a bank account not being a UK resident and without proof of existing UK customers was extremely challenging.
Earlier quoted context omitted.
Is there something stopping a US company from issuing equity to foreign citizens?
No
And.... IANAL, we pay people to figure this stuff out or stay away from it.
Ireland seems like an obvious one to look into. English language. Simplified relationship with the EU as a market and source of employees. Used to dealing with US paperwork but not going to cause anyone to get the viral US person disease.
Earlier quoted context omitted.
Thanks for the feedback. Did you generally encounter any bigger issues with this setup or would you do it again for the next company? Also, where in the US did you incorporate? Delaware?
Delaware, though we originally incorporated in the UK and then flipped as a condition of receiving investment. (Thanks Accel people!) The flip was the most complicated thing we've done--accounting, lawyers on both sides to avoid the dreaded taxable event, etc. I would absolutely do the same in future. The contract to individual or individual's company is a standard model for remote companies like us that work on open…
The setup sounds great! I assume that you flipped to a C-Corp? Are most of the founders in the US or are you living abroad? How long did it take to flip the UK LTD? Do you force your contractors to set up companies or is it up to them?
At least if the contractors are in Germany and are working full-time for you then I think they would get issues with “Scheinselbständigkeit” if they don’t have a company, that’s why I am asking.
Reading this thread (and remembering past pains) I posit that things are too complex almost everywhere. Some innovation-minded billionaire should buy an island - a white spot on the map ( not this one: https://en.wikipedia.org/wiki/Principality_of_Sealand ) - and create a new jurisdiction optimized for incubating remote startups.
If you want VCs then it's always the US and should always be a Delaware corp. For non-VC funded companies HK is great, allows for tax minimization, minimal headaches, access to international banks and potential access to Chinese market if that is important for your business.
The vast majority of valley investors are OK w uk these days.
I’ve founded companies in the UK, US and EU. I’d recommend the UK. The cost of a limited company is £12. It’s formed in a day. Use https://www.ukpostbox.com if you need an address. The legal system is well known and entrepreneur friendly. Accountancy and company admin are simple and relaxed. HMRC is supportive. You can pay dividends on a flexible schedule. There’s a very large ecosystem of financial support, innovati…
That's a pretty complex question with a lot to unpack. (Except: Minimize your contact surface vis-a-vis Germany. That part seems easy.) First off: There is no such thing as a "remote friendly" jurisdiction. Estonia is trying to market this, but don't drink the Kool Aid. Someone is going to have to make a trip to the bank or the notary every now and then. They'll have to show their faces. They'll have to affix their s…