Ask HN: Startup Equity to Iranian National and Delaware Inc

#1

Post by daves_startup » Sat, Nov 30, 2019, 2:30 PM UTC

Hello, need a hand here. We are a small tech start up and have a team of 6 from all over the world. One of our team is an Iranian national, based in UK on a work visa. We are all working for equity right now and the company is based in UK today.

We are considering registering our company in Delaware and it looks like US sanctions might give us a challenge.

Does anyone have any experience or advice in this area / lawyers to recommend etc?

Thanks Dave

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#2

Post by tomklein » Sat, Nov 30, 2019, 7:28 PM UTC

Maybe you could ask at a US embassy if you don’t find answers?

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#3

Post by JCoder58 » Sat, Nov 30, 2019, 8:37 PM UTC

The US Embassy in London has a list of UK lawyers who have experience with US Law:

https://uk.usembassy.gov/u-s-citizen-services/attorney/

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#4

Post by daves_startup » Sat, Nov 30, 2019, 10:32 PM UTC

JCoder58 wrote: post #3

The US Embassy in London has a list of UK lawyers who have experience with US Law: https://uk.usembassy.gov/u-s-citizen-services/attorney/

Thank you!!

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#5

Post by daves_startup » Sat, Nov 30, 2019, 10:32 PM UTC

tomklein wrote: post #2

Maybe you could ask at a US embassy if you don’t find answers?

Thank you!!

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#6

Post by brudgers » Sun, Dec 01, 2019, 12:29 AM UTC

I’m not a lawyer. Issues with Iran aside. A Delaware C corporation may need to pay its employees actual wages. Not equity. Not complying with labor laws is a known method for creating legal problems later if the company becomes successful. Business practices that might work for proprietorships, partnerships, and LLC’s don’t scale out to C corps. Good luck.

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#7

Post by keepspeechfree » Sun, Dec 01, 2019, 3:10 AM UTC

yes definitely consult a lawyer, it might introduce complications working with US companies.

There might be other ways you can structure his compensation that would be better for the company, maybe as a profit share and a bonus if the company sells that matches up to what would be his % ownership.

But it's the right move to find an attorney with experience.

Re: Ask HN: Startup Equity to Iranian National and Delaware Inc

#8

Post by daves_startup » Sun, Dec 01, 2019, 9:18 PM UTC

brudgers wrote: post #6

I’m not a lawyer. Issues with Iran aside. A Delaware C corporation may need to pay its employees actual wages. Not equity. Not complying with labor laws is a known method for creating legal problems later if the company becomes successful. Business practices that might work for proprietorships, partnerships, and LLC’s don’t scale out to C corps. Good luck.

Thanks!!