Why you might not want to incorporate in the USA • Hacker News Board

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

#191

Post by Glyptodon » Thu, Mar 13, 2014, 4:21 PM UTC

Dewie wrote: post #132

digitalengineer wrote: post #12

Earlier quoted context omitted.

America is big and as different as Europe. Even though most Americans speak English, it's not a uniform country as us Europeans think. But don't confuse the people with the state. They're not the same. The Americans I met were generally quite nice and willing to help an (obvious) tourist out. Bureaucrats? They thrive in chaos.

> and as different as Europe. How? I just have a hard time imagining how a place with dozens of languages and cultures (I think that cultures with very different languages are likely to be very different from each other) and all of that can be less varied than a place like the US.

I feel more like I'm in a foreign country in Mississippi than I do when in Germany. And I'm an American who doesn't even speak German.

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

#192

Post by toomuchtodo » Thu, Mar 13, 2014, 4:25 PM UTC

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…

> AMA

I'm a US citizen but am absolutely tired of dealing with IRS paperwork over the course of several businesses; where would you suggest I obtain citizenship (EU preferred).

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

#193

Post by dcc1 » Thu, Mar 13, 2014, 4:26 PM UTC

luser wrote: post #129

dcc1 wrote: post #48

Earlier quoted context omitted.

As someone who has been in business here since 2007, i would stop you right there! We have our share of a bureaucracy (example: took 6 months to get reply from Revenue as to what VAT to pay or not on sales of hosting packages, 23% sales tax (VAT) on customers from EU-28 was the answer eventually) and you quickly realise there are 3 types of companies here: 1. Large corporations setting up shops to launder money onto…

Sorry, I have to disagree. I have run a small software consulting business in Dublin for nearly ten years. The one thing we get right in this country is our pro business climate. It is easy to set up a company, there is a lot of support and advice available. I think we do this well... Two caveats though: - You DO need to get a good accountant to get advice on international VAT charges as they are complex (I suggest b…

re: fastsrping

"You have the option to pay either 8.9% flat or 5.9% plus $.95 per transaction. "

Wowza, thats steep!

edit: Sorry but experience has been different here in west, in another lifetime I worked on an "innovation partnership" with EI, it was nothing more than a way to funnel state money to politically connected "friends", the business idea was crippled from day 1 but that didnt matter the objective was transfer money, which as as a taxpayer was sickening.

Sorry for being cynical but I have many years of experience in business here, and seen it all in my interactions with state bodies. Maybe in Dublin they manage to put on a better show or things changed in last few years.

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

#194

Post by pessimizer » Thu, Mar 13, 2014, 4:27 PM UTC

nitai wrote: post #118

oesmith wrote: post #105

Earlier quoted context omitted.

Google Webmaster Tools' "Fetch as googlebot" feature is useful in debugging these problems. See http://www.mattcutts.com/blog/fetch-as-googlebot-tool-hacked...

Awesome. Thanks. Should be good now. Though, will test some more.

It's not good. Change your user-agent to googlebot (User Agent Switcher is a good addon for Firefox.)

I accidentally still had it on from trying to read an article that some site was showing exclusively to the googlebot but paywalling for everyone else. If I hadn't, I wouldn't have noticed.

http://imgur.com/rYolfvR

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

#195

Post by M2Ys4U » Thu, Mar 13, 2014, 4:27 PM UTC

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.

The bureaucracy expands to meet the expanding needs of the bureaucracy.

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

#196

Post by mbesto » Thu, Mar 13, 2014, 4:37 PM UTC

toomuchtodo wrote: post #192

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…

> AMA I'm a US citizen but am absolutely tired of dealing with IRS paperwork over the course of several businesses; where would you suggest I obtain citizenship (EU preferred).

US Citizen here! Unfortunately, it won't end!

First, you have to fill out personal taxes every year for foreign income, regardless of whether you live in the US or not. All income globally is treated in the eyes of the IRS as income.

Second, you have to declare FBAR if you hold foreign accounts of over $10,000.

Third, you have to "open your books" for any foreign corporations you are the director (or have ownership) of. Check IRS forms 5471 and 5472.

Yaaa! Land of the free!

Source: American with a business in the UK, lived and worked in the UK. Not a lawyer, or an accountant.

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

#197

Post by cbp » Thu, Mar 13, 2014, 4:38 PM UTC

So if I'm neither american or european. Is it actually easier for me to move to europe, get a visa there and start an european company than an american one?

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

#198

Post by fizz_and_buzz » Thu, Mar 13, 2014, 4:38 PM UTC

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…

At my work we are considering to open an office and incorporate in the US (We are based in Germany). Are there states that easier to set up an office? Delaware? Our costumers are manly in the Chicago area and the north east.

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

#199

Post by dragonbonheur » Thu, Mar 13, 2014, 4:43 PM UTC

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?

Mauritius: the best place to do business in all of Africa. Good connectivity, great tax rates, no corporate gains tax, awesome beaches. http://www.investmauritius.com/

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

#200

Post by apa-sl » Thu, Mar 13, 2014, 4:45 PM UTC

mattlutze wrote: post #87

nitai wrote: post #73

Earlier quoted context omitted.

Exactly, one of the (major or even only?) reason to be in the US.

Labor also moves relatively freely in the US. Here in Germany, I get the impression that an employee is incredibly "safe" compared to the US -- is it the same elsewhere in the EU? This has the double effect of probably making any one community more resilient to small market movements, but I have a hunch it also suppresses the volume of desirable candidates in the unemployment pool. I'd wager that a robust, high-turno…

In Poland when you want to hire someone "as it should be" with a proper work contract it is quite a pain in the ass for the employer. 1) Many rights for the empolyee, not so many for the employer, 2) VERY high real costs of employment (only ~40% of total employment costs lands in the hands of the employee to his/her disposal).

That's why many companies are using some "alternative" ways to hire someone still legally with much lower costs (10-25% employer costs including the salary) and more balanced rights for both sides of the contract.