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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

#101

Post by nitai »

beagle3 wrote: post #84
ryankask wrote: post #72

Earlier quoted context omitted.

I moved to the UK a few years ago and I couldn't agree more that the IRS rules and regulations unfairly penalize "average" US citizens that live and operate abroad. FBAR, FATCA and if you start a business, form 5471 and friends. I got some quotes from a few accountants and I will likely have to pay thousands of dollars for assistance just to fill out informational forms and pay (maybe) a few hundred dollars in US tax…

I think that's the most ridiculous thing about it: Whether you are an American who moved to a treaty country, or a treaty country resident who moved to the US, it is not likely that you'll have to pay a lot of US taxes if at all. (The treaties I am familiar with are quite reasonable). However, unless you are a tax professional yourself, you are going to be "taxed" by a professional to prepare all those papers that yo…

Additionally, the US is one of the few countries that punish their citizens with US tax even when they don't live in the US anymore...

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

#102

Post by estebank »

levosmetalo wrote: post #97
randallsquared wrote: post #94

Earlier quoted context omitted.

On the next line, he did: "the most free market oriented non-postage-stamp nation on earth".

What is a postage-stamp nation then?

Liechtenstein

http://en.wikipedia.org/wiki/Liechtenstein

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

#104

Post by nitai »

beagle3 wrote: post #92
nitai wrote: post #67

Earlier quoted context omitted.

We got a professional CPA and lawyers on this. In the US it is such that when you hire someone (remote work) and he lives in, e.g. Philadelphia, you have to "incorporate" in that state. This is not the case in every state, but in some.

This is a difference in culture between Europe and the US: Most US employers won't notice that, because if they employ people across the US and not in an office, they'd hire than as contractors rather than as employees. In Europe, this form of contracting is much less prevalent. I'm not sure what the cause and what is the result here, but it explains why Americans don't usually see this problem.

Yeah I know. We've tried to talk to some and have them on as contractors, but some did not want that (since that would have caused issues for them). Plus being from Europe, we really like to give our employees health care, vacation and all the nice benefits of an employee ;-)

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

#105

Post by oesmith »

nitai wrote: post #83
PeekPoke wrote: post #23

Earlier quoted context omitted.

It's definitely the site. I have connected on my PC and see the links. Then connect via 3G on my SGS2 - no links. Connect to my LAN on the SGS2 - links appear. Blog Admin needs to check his site. EDIT: Ah... it's a WordPress site, 'nuff said.

I just went to a Starbucks and don't see those links. Can you please point that out further?

Google Webmaster Tools' "Fetch as googlebot" feature is useful in debugging these problems.

See http://www.mattcutts.com/blog/fetch-as-googlebot-tool-hacked...

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

#106

Post by dcc1 »

merrua wrote: post #98
dcc1 wrote: post #95

Earlier quoted context omitted.

Yes sorry VAT (i called it sales tax for US readers to relate) We have a lowish corporation tax of 12.5% yes paid on company profits, but everything else is very high! For example out of a ~€39000 salary last year after all taxes i was left with €25000, things get rapidly worse from there if you want to move money from your company to yourself, people can check http://www.deloitte.ie/tc/ for ideas of what income taxe…

Did you find it difficult to get Incorporated as well? or is was that fast, just everything afterwards tedious and slow? Did you found in Ireland?

No incorporation was extremely easy and fast.

Its afterwards when the fun begins especially if you are in IT where Revenue might not know how to tax you and you need get a written judgement (So they don't accuse you of not paying taxes).

For example I would love to start a bitcoin related business but afraid of what decision they might make (according to newspaper last week they are still deciding)

Overall starting business here is not too bad, its growing and expanding that is hard, and misconception that Ireland is low tax, it is not nor is it a cheap place to live. Everytime i hear americans complain about sales taxes I say you seen nothing yet :D

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

#107

Post by nitai »

beagle3 wrote: post #89
mjolk wrote: post #60

Earlier quoted context omitted.

While this thread is bound to fill with anecdotes... > Tourists are already turned off from coming to the US because of the TSA issues. I'd love to agree with you, but there's that pesky reality that disagrees with your claim: http://cityroom.blogs.nytimes.com/2012/12/31/a-record-year-f... >Even countries like the UK with it's constituent nations and territories work hard at having a uniform and efficient system for…

> The paperwork really isn't hard. Yes, it is. Many of my friends are business owners, most of them have some international business. I've been in touch with a variety of tax professionals in different countries through the years. In the last 10 years or so, I've seen more than one business or partnership outside the US state in its charter that "shareholder may not be a US tax payer, and may not sell his shares to o…

Spot on ;-)

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

#108

Post by samastur »

josefresco wrote: post #93
dijit wrote: post #75

Earlier quoted context omitted.

I went to NYC/Philly/NJ last summer.. T-Mobile barely exists out of the city itself, and yeah, speeds are abysmal. $50 for a sim card too... Anecdotally I went to the Swedish countryside in january; where I got 16Mb/s over 3g. (and it was free because: EU roaming is free on my carrier)

To be fair, you're talking about a distant 4th place provider that most in the US understand will not work great outside of major population areas. I would understand if you had issues with one of the big two (VZ/ATT). Also to be fair, Sweden is about the size of California.

But with far fewer people living there.

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

#109

Post by brador »

jzwinck wrote: post #96
brador wrote: post #85

So where's the optimal location to setup a no-physical-location-required business? I've heard Hong Kong, Singapore, Delaware...any thoughts?

It depends on what kind of business, and what languages are understood by the people involved.

How about token startup: all English speakers, cloud based businesses, sass, no inventory, both business owners US citizens?

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

#110

Post by Systemic33 »

workhere-io wrote: post #74

As the article states, Denmark, while having high taxes, is very business-friendly: Very little bureaucracy, almost zero corruption, English-speaking population, relatively cheap apartments ($1,850 per month for a newly constructed two-bedroom apartment in central Copenhagen) and very low expenses of health care and firing people. Also, while wages are generally very high, they're not high compared to Silicon Valley…

And god forbid, the 180% registration tax on vehicles (basicly any type of vehicle becomes twice as expensive)

PS. Electric vehicles are an exception, making the Tesla very cheap in terms of premium cars (think Mercedes-Benz S class, BMW 7-series)

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