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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

#341

Post by _dark_matter_ »

lstamour wrote: post #301
jonmrodriguez wrote: post #248

Earlier quoted context omitted.

By the way, if you hate the US's horrible tax forms, you should boycott the company Intuit (makers of Mint.com, QuickBooks, TurboTax, and more). Intuit spends a huge amount of money every year lobbying to make sure that tax forms are as complicated as possible: http://techcrunch.com/2013/03/27/turbotax-maker-funnels-mill... So evil!!!

I would point out that Mint.com was a startup at first, and I can't see how it or Intuit can prevent further competitors, e.g. personal capital. So... While I do prefer free tax filing tools over QuickTax, I'm not sure Mint is to blame. If anything, by using a free service, aren't you costing them money? Edit: I might be mistaken as in Canada (where I am) it's not as easy as pay what the Government says you owe, but…

...that's like saying that by using Facebook and Twitter, you're costing them money. They'll figure out another way to make money, you're just not the customer.

That's why I don't use Mint.

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

#342

Post by warrenm »

philiphodgen wrote: post #213
apa-sl wrote: post #207

Earlier quoted context omitted.

We're running a startup incorporated in European Union and planning to incorporate c-corp in Delaware as our mother company. C-corp will simply buy-out 100% shares in our European company which will be still hiring our employees (located and working in Europe). From what we've checked we shouldn't have any hassle (event the c-corp bank account will be opened in European bank) or are we missing something?

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…

by "IP", do you mean "Internet Protocol" or "Intellectual Property"?

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

#344

Post by wh0car3s »

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.

Not a US citizen (yet) - I'm a long way from getting it, considering that I'm just in the process of getting a green card; But to answer your question, I'm from the Philippines..

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

#345

Post by dleskov »

dcc1 wrote: post #332
dleskov wrote: post #297

Earlier quoted context omitted.

> re: fastsrping > "You have the option to pay either 8.9% flat or 5.9% plus $.95 per transaction. " > Wowza, thats steep! FastSpring customer here. First, they handle lots of boring and complicated stuff for you, not just taxes. How much would it cost you to accept all major credit cards, PayPal, checks and (international) wire transfers, and provide customer service for all of those transaction types? Second, if yo…

I see, still thats quite a bit especially when need to hand over a large chunk on any sale from Irish/EU28 customers in tax! Currently working with Elavon for credit card payments (cant disclose exact rates, but much cheaper than Stripe), completely avoiding Paypal who can go and f&*k themselves, and getting several of the larger customers to pay via SEPA bank transfer or bitcoin which have nearly no fees.

> I see, still thats quite a bit especially when need to hand over a large chunk on any sale from Irish/EU28 customers in tax!

I am not sure I understand what you are talking about. If we set the price at $1K, we get from FastSpring $1K minus their commission, whether the customer has paid the EU VAT or some sales tax on top of that $1K or not. And it is FastSpring that does EU VAT remittance.

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

#346

Post by driverdan »

quellhorst wrote: post #219
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…

What do you think about an offshore corporation for Bitcoin startups? Considering the regulatory environment in the USA, is it better to incorporate in someplace like Panama or Switzerland?

If you are a US citizen it doesn't make a difference. You'll still need to register it as a foreign entity within the US and US laws will still apply. If you're not a US citizen you're lucky.

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

#347

Post by swayvil »

jonmrodriguez wrote: post #248
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…

By the way, if you hate the US's horrible tax forms, you should boycott the company Intuit (makers of Mint.com, QuickBooks, TurboTax, and more). Intuit spends a huge amount of money every year lobbying to make sure that tax forms are as complicated as possible: http://techcrunch.com/2013/03/27/turbotax-maker-funnels-mill... So evil!!!

Intuit strives to keep tax forms unintuitive. Well if that isn't Orwellian then I don't know what is.

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

#348

Post by wiradikusuma »

philiphodgen wrote: post #211
wiradikusuma wrote: post #188

Earlier quoted context omitted.

This is probably the most stupid question you ever heard: I'm from Indonesia, working in Malaysia. Mid of last year I incorporated a C-Corp in Delaware. The reason is so I can use Stripe to accept CC payments. Apparently to open bank account in the US, I need to be there in person, so I'm now stuck with a "sleeping" company (because I don't have time to go to US just to open a bank account, not to mention the expense…

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…

Thank you! I do hope someone can do what you suggested in the last paragraph. There's already similar services in e.g. Singapore to appoint local directors.

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

#349

Post by toomuchtodo »

jpatokal wrote: post #336
ajtaylor wrote: post #306

Earlier quoted context omitted.

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.

You need 4 years total though. Which is still pretty good though, in places like the US you're lucky to get even a green card in 10 years...

The EU also has 8-10 year residency requirements, based on country. Malta is the shortest, at only a year, but you have to cough up € 1 million.

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

#350

Post by remylebeau »

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…

Thanks for doing this!

I am a US citizen considering starting a company (possibly with 1 or 2 others) to do sports betting (illegal in US). I'm happy to live abroad (likely in Europe where sports betting is legal/popular) and potentially hop around from country to country. I'm trying to figure out my options. My understanding is that in order to do the sports betting I will need to open up a bank account abroad regardless (likely in the UK.) Any help on the follow questions would be greatly appreciated!

1) Be a self-employed nomad or incorporate? My understanding is that with the former option I would have to change countries every 3-6 months since I would be staying places under a travel visa -- is this correct?

2) If I incorporate... A) where should I do it? - Is it legal to do it in the US? The income would be going into a foreign bank account, if that matters. Could I then supply my own work visa to stay abroad in the same country for longer? - Can I incorporate in someplace like the UK? Does this carry tax benefits over being self-employed? Would this affect how long I am able to live in one country at a time? B) what type of corporation? - in US -- LLC? C-Corp? - in UK -- LTD? - other?

Please excuse my lack of legal knowledge, I'm very new to all of this. Thanks again!

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