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Why you might not want to incorporate in the USA

thenitai.com

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Re: Why you might not want to incorporate in the USA

#321

Post by mattlutze »

nitai wrote: post #277
mattlutze wrote: post #158

Earlier quoted context omitted.

You cannot work on a Language visa in Germany[0], and artists in Berlin are special as the country wants to promote it as an art capital of Europe[1]. In almost every case, a non-EU/Schengen citizen needs to show ability to support him/herself when moving to Germany; that person must already have a job offer, which must pay at least 37(STEM) or 47,500 (others) EUR[0]. Non-EU folks in Germany as well, for example, don…

Thank you for your comment. As a fact I know 10+ US citizens that have had no problem coming to Germany and live and work. All self employed and sufficient to provide for themselves for some time. It might have changed, but the last time I've checked it was way easier then getting any Visa in the USA. Speaking off, yes, we tried to get a B* visa but the 67000 visa they issue per year was filled within 3 days. One can…

As a fact I know 10+ European citizens that have had no problem coming to the US to live and work... you're a techie, we both know anecdotes are not data.

No one challenges that US visas are difficult at times to get. But if it was such an issue, I've gotta ask -- how is your software company's offering and positioning so unique that only you could manage operations from the US?

Also, to note, B1/B2 visas are for "temporary" visits for work or pleasure. There were multiple EB-* visas for permanent relocation. Even so, B1 visas are granted by the millions and are valid for Europeans for 10 years...

Re: Why you might not want to incorporate in the USA

#322

Post by acchow »

ma2rten wrote: post #170
philiphodgen wrote: post #134

I am an international tax lawyer and this stuff is my day job. Consider this comment an AMA. For smaller companies, the bureaucratic cost of international tax systems is insane. For US citizens abroad ... I will just say that my biggest area of growth is helping people shed their US citizenship and tax paperwork/penalties is the number 1 reason. Anyway. If you are in a position like The One and Only Netai -- or don't…

I have a loosely related question, which I hope you might consider as well. I am a startup employee in the US with stock options on a standard 4 year vesting schedule. I am not an American citizen. In my home country, if I exercise the stock options I would not be liable for taxes. Can I avoid paying taxes, if I move outside of the US for that tax year where I excise my startup options?

Most countries (the U.S. included) follow fairly similar standards when it comes to taxation of stock options - if they have a vesting period, taxation is proportioned accordingly with where you spent that vesting period. So, if they vested over 4 years and you spent 2.5 years of that in the U.S., it doesn't matter that you moved back home for a year to exercise. 2.5-years worth of stock options are considered U.S.-sourced and you owe taxes to USA when exercising them.

Re: Why you might not want to incorporate in the USA

#323

Post by acchow »

philiphodgen wrote: post #144
STRML wrote: post #137

Earlier quoted context omitted.

It's something I've considered. As a now resident of Hong Kong, I was surprised - and delighted - with how incredibly easy it was to handle my taxes. Front-to-back, I could do the whole thing, including payment, in less than an hour and understand the whole system. Unfortunately, it is nowhere near so simple in the US, and they have no regard for expats. The US treats its expats worse than any other country in the wo…

I think it is Clay Shirky who said something to the effect that bureaucracies have every incentive to not solve problems. Otherwise the reason for the bureaucrats' existence would cease. We won't see solutions from the US government. Ever. Yes the tax stuff is painful but as in your case there are reasons to keep the citizenship.

Tried to find this quote but failed. Any chance you could dig it up? I love it :)

Re: Why you might not want to incorporate in the USA

#324

Post by vacri »

ajtaylor wrote: post #306
jpatokal wrote: post #272

Earlier quoted context omitted.

+1 for Singapore, at least from a business perspective: http://gyrovague.com/2013/10/30/half-the-donut-why-an-entrep... Personally, I'm going for Australia though -- there's more to life than low taxes.

I'm starting the work for my PR in Australia. We love it here, plus the paths are short and straightforward: 2 years as 457 => PR through employer sponsorship, 1-2(?) years as PR => citizenship.

Another traditional route to Australian citizenship is via New Zealand. Get a kiwi citizenship first, which is easier than an Aus one. With an NZ passport, it's easier to get an Australian one.

It's actually quite a serious problem for the kiwis, because they do the hard yards of bringing immigrants up-to-speed with the local culture (eg English language lessons), only to have them jump the ditch (Tasman sea) to Australia.

Re: Why you might not want to incorporate in the USA

#325

Post by vacri »

girvo wrote: post #295
jpatokal wrote: post #272

Earlier quoted context omitted.

+1 for Singapore, at least from a business perspective: http://gyrovague.com/2013/10/30/half-the-donut-why-an-entrep... Personally, I'm going for Australia though -- there's more to life than low taxes.

Yeah, while our taxes here in Aus are high, so are our standards of living. Although our new government seems intent on ruining that, in a bid to out-do the US in terms of idiotic legislation and curbing freedoms...

As jsankey says, we're really not highly taxed. Our tax load is on par with the US, and we have the benefit of a much simpler tax system, from income tax to business taxes. Cost of living is high, though.

Re: Why you might not want to incorporate in the USA

#326

Post by vacri »

dude3 wrote: post #309

Denmark's defense budget is really small 3.2 % of government spending vs 18.2% for the United States. Therefore, Denmark has much more cash to spend and is a richer nation relying on US for defense.

The US gets considerable economic and political advantages from that defence outlay. It's quite normal to park a fleet outside someone's capital (in international waters) as a show of political force. It's still a ridiculously high percentage, but the concept of the World Cop needs to be put to rest. It's more like World Vigilante Strongman.

Re: Why you might not want to incorporate in the USA

#327

Post by bpaluzzi »

nitai wrote: post #278
bpaluzzi wrote: post #157

Earlier quoted context omitted.

Sorry, but your assertion that an American can simply come to Europe and work is false. In Germany, like in the UK, you most definitely CANNOT just come over and declare your intention to work. "If you are coming to work in general employment (that is, a job that does not require you to be highly skilled or highly educated), you will need to apply for a residence permit for the purpose of general employment, and you…

As a company owner, wanting to open an office, deploy people and live in the chosen country, is much much easier in Europe then in the US. Just about every country welcomes you and even offers help in the form of some sort of fund or start-up program.

Again, that's simply not true. A US employee trying to work in the EU will have just as difficult of a time as vice versa. Please look at the examples I and others have posted.

Re: Why you might not want to incorporate in the USA

#328

Post by JacobAldridge »

mahyarm wrote: post #237
philiphodgen wrote: post #213

Earlier quoted context omitted.

Do not transfer IP to the US mother ship before you have thought it out. You can transfer IP into the USA but once you have done that all of the profit generated from that IP worldwide will be subject to US tax. And if you ever want to transfer the IP out of the USA it will be treated as a sale. The worst I ever saw was one of those online poker sites. To move out of the USA they had to move their IP to a new foreign…

So where should the non-us company be registered if you want to avoid IP headaches? Canada? Ireland? BVI?

The company I license my IP from is registered in Iceland - where the major markets of Europe and North America meet.

Re: Why you might not want to incorporate in the USA

#329

Post by bpaluzzi »

nitai wrote: post #279
wh0car3s wrote: post #184

Earlier quoted context omitted.

I'll echo mattlutze and say that the EB visas are a great track to come here in the US. Also, I'm a foreigner with a non-immigrant visa, but that didn't stop me from incorporating and I know that if I hire someone or did business in another state I'll have to register or incorporate in that state (I got that by my own research, if that wasn't given to you then you received bad counsel). Not anyone can just come to Eu…

> I can't even visit Europe without a Schengen visa Where are you from? US citizens can freely come to Europe without the need for any Visa. You can even freely travel within the Schengen area without showing your passport once.

They can come to Europe, but they cannot work.

Re: Why you might not want to incorporate in the USA

#330

Post by lotsofmangos »

raverbashing wrote: post #233
philiphodgen wrote: post #211

Earlier quoted context omitted.

My experience with this is yes that you need to be in the USA to open the bank account for the US corporation. It MAY be possible to work something out if you deal with one of the multinational banks like Citi or HSBC but don't count on it. To keep this sleeping corporation alive: 1. File the paperwork in Delaware every year and pay the fees there. 2. File a Form 1120 (the corporate income tax return) with zero incom…

The requirement for being present in the US to open a bank account comes IIRC from the Patriotic Act The multinational banks won't help you with this.

HSBC might...
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