![]() ![]() Corporations registered in Delaware that do not do business in the state do not pay corporate income tax. One of the main reasons Delaware has attracted the eye of corporations across the world is the lenient taxes imposed by the state. Generally, when companies are looking to incorporate from outside of the US, they’re incentivised to do so in Delaware because of their business-friendly governance such as the Delaware General Corporation Law and the Limited Liability Company Act. The Argument for a US Company:īeyond the potential credibility it might provide your company, and aside from the market size and growth potential for growing a business in the US, there are various reasons, particularly if you are a tech-company, to HQ/register your company in the US, regardless of where you are actually based. ![]() Usually sticking to the eco-system you are in right in the early days makes the most sense, but as a company grows, especially through means of Venture Capital, there may be a good reason to open sub-entities as you go. One thing to consider when raising money is whether the Venture Capital or Angel investor you are pitching has any incentive for you to be incorporated elsewhere. The UK famously has the Enterprise (EIS) and Seed Enterprise Investment Schemes (SEIS) which are government led initiatives offering individual investors up to 50% income tax relief on the money they invest (more information here) when investing in early-stage companies. The streamlined legal infrastructure means companies aren’t left having to notarise documents (such as with Germany, Amsterdam, Spain etc.) and can theoretically complete funding rounds in a matter of days.Īs touched on above, different geographies have various schemes and incentives to encourage investments into businesses. Generally, if you are based in Europe, the UK is often the destination of choice for many founders to incorporate, mainly due to friendly legal frameworks and generous tax reliefs for individual investors/angels. The decision as to where you should incorporate your start-up or business can have certain implications, especially if you are looking to raise funds from external shareholders/investors. Where should you incorporate your start-up? ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |