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Is Delaware the cheapest place to incorporate?

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Re: Is Delaware the cheapest place to incorporate?

#111

Post by jokethrowaway »

gumballindie wrote: post #36
Beijinger wrote: post #34

Earlier quoted context omitted.

You must be obviously a British citizen. Please be advises, compared to the rest of the core EU your taxes are pretty decent (lets not talk about HU, BG etc.) And what most angel-sax people are not aware of: Everybody can open a company in the UK or US with a few mouse clicks. Try this in some other EU countries :-) (e.g. Germany). And as a non UK/US resident, HMRC is not realy relevant to you.

The issue is with paying high taxes and getting services of a quality comparable to hu, bg and so on. Things are really that bad in the UK (albeit more friendly and relaxed). You can indeed create a company in a few clicks, but the system has so many small issues here and there that it becomes frustrating real fast. Post brexit uk is seriously under skilled (the media calls it under staffed, but we all know whats rea…

That's ridiculous, HMRC, despite its warts, is light years ahead other European countries where people usually want to move to (Italy, France, Spain, Portugal, Cyprus, Malta). Estonia (and I've heard good things about Poland - and I'm sure I'm missing something) are even better than the UK but I see very little reasons to move there.

I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with.

With the right international structure and the ability to shift profits corporate tax is not that important.

Re: Is Delaware the cheapest place to incorporate?

#112

Post by devoutsalsa »

KieranMac wrote: post #38

I'm an attorney. Delaware is definitely not the cheapest or even in contention for the cheapest. Still, if you want to raise capital, the correct answer is DE C Corp. If you're not looking for external funding, any state will do. If you care about anonymity, do Nevada or Wyoming. If you don't care about anonymity, Colorado is actually a very good choice. Very simple, intuitive online filing system that accepts filing…

Some states are better than others. For example, California has an annual LLC tax of $800. There's no reason to pick California for a use case like this.

Re: Is Delaware the cheapest place to incorporate?

#113

Post by simonebrunozzi »

KieranMac wrote: post #38

I'm an attorney. Delaware is definitely not the cheapest or even in contention for the cheapest. Still, if you want to raise capital, the correct answer is DE C Corp. If you're not looking for external funding, any state will do. If you care about anonymity, do Nevada or Wyoming. If you don't care about anonymity, Colorado is actually a very good choice. Very simple, intuitive online filing system that accepts filing…

When did the OP say that he's a US citizen? Not sure I saw that.

Re: Is Delaware the cheapest place to incorporate?

#115

Post by throwaheyy »

Mystery-Machine wrote: post #90
throwaheyy wrote: post #82

Earlier quoted context omitted.

I assume ”non-resident” in this context means not a permanent resident, but still a SSN-holding resident otherwise. For example a TN or H1-B visa. These visas don’t authorize you to work for a company other than the one officially sponsoring the visa, but you are allowed to own your own business. Perhaps that is the motivation for wanting to open an LLC, but I’m not sure what an LLC gets you in this situation that si…

You're wrong. Non-resident alien means the person is at-best a tourist. Most likely the person is outside of the US and _maybe_ visits occasionally.

Completely wrong.

Re: Is Delaware the cheapest place to incorporate?

#116

Post by pyb »

ddxv wrote: post #4
mnky9800n wrote: post #2

what is the point of having a company if it doesn't have any revenue?

That's a fair question. I felt like it was forcing myself to have some accountability and responsibility.

Not sure how incorporating will help with those things. Adding a layer of bureaucracy will not magically create accountability.

Re: Is Delaware the cheapest place to incorporate?

#117

Post by Beijinger »

jokethrowaway wrote: post #111
gumballindie wrote: post #36

Earlier quoted context omitted.

The issue is with paying high taxes and getting services of a quality comparable to hu, bg and so on. Things are really that bad in the UK (albeit more friendly and relaxed). You can indeed create a company in a few clicks, but the system has so many small issues here and there that it becomes frustrating real fast. Post brexit uk is seriously under skilled (the media calls it under staffed, but we all know whats rea…

That's ridiculous, HMRC, despite its warts, is light years ahead other European countries where people usually want to move to (Italy, France, Spain, Portugal, Cyprus, Malta). Estonia (and I've heard good things about Poland - and I'm sure I'm missing something) are even better than the UK but I see very little reasons to move there. I moved to Europe (purely for the weather and food, everything else is better in the…

"I moved to Europe (purely for the weather and food, everything else is better in the UK: job prospects, crime, services) but keep my UK limited because it's so much nicer to work with."

Where did you move from? Has the UK not only left the EU but also Europe? That would be a real tragedy.

Re: Is Delaware the cheapest place to incorporate?

#119

Post by d1sxeyes »

gumballindie wrote: post #49
Beijinger wrote: post #40

Earlier quoted context omitted.

Well, in HU and BG you pay around 10% company taxes. HU has low income taxes too but for a big salary, social security, retirement payments etc. is also pretty high. "but the system has so many small issues here" You can always abandon a company. Especially as a foreigner and online? Forget about it. I have no experience with the HMRC and I am sure every British person hopes for a better service. But please keep in m…

So that proves my initial point - taxes are lower in hu and bg. Shame they dont do online company registration. Life expectancy likely _was_ higher in the uk than the us but given that the nhs is in shambles i’d be surprised if it isnt dropping. To digress, the nhs is in such a bad state that guaranteed east europe will overtake the uk in terms of health care unless anything changes. The tax money is being wasted by…

Hungary has high taxes for the vast majority of tax payers, because it is not at all progressive.

Personal Income Tax is relatively low at 15%, but due to the fact it applies to every forint you earn, personal income tax is higher in Hungary until your salary reaches about 50 000 GBP (more than three times the median Hungarian salary), after which the UK is higher (noting that the median salary in the UK is already around twice what it is in Hungary).

Capital gains are taxed at the same rate of 15% with no allowance, while the UK has a 6 000 GBP allowance, and after that there's a system which has 10% for lower income tax payers, or 20-28% otherwise, meaning capital gains of less than around 25 000 GBP are taxed higher in Hungary than in the UK (assuming a higher rate tax payer, for lower rate tax payers, it's cheaper in the UK for a bit longer).

VAT is at 27% in Hungary compared to 20% in the UK.

Inheritance and gift taxes are 18% in the UK with no allowances while in the UK you pay 40% of everything above 325 000 GBP (meaning inheriting under around 600 000 GBP is more expensive in Hungary). Corporation tax is 9%, with additionally a possible 2% local tax.

In short, for the majority of tax payers, taxes are lower in the UK. The more money you make, the more favourable Hungary becomes.

Corporation tax though is indeed lower than the UK, at only 9%, compared to the UK's 19-25%.

Re: Is Delaware the cheapest place to incorporate?

#120

Post by PopAlongKid »

devoutsalsa wrote: post #112
KieranMac wrote: post #38

I'm an attorney. Delaware is definitely not the cheapest or even in contention for the cheapest. Still, if you want to raise capital, the correct answer is DE C Corp. If you're not looking for external funding, any state will do. If you care about anonymity, do Nevada or Wyoming. If you don't care about anonymity, Colorado is actually a very good choice. Very simple, intuitive online filing system that accepts filing…

Some states are better than others. For example, California has an annual LLC tax of $800. There's no reason to pick California for a use case like this.

But if you are doing business in California, you are still liable for the annual $800 tax, even if your LLC is formed in another state.
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