Why not incorporate off-shore? Ireland's corporate tax is 12.5%; British Virgin Islands' is 0% - falsestprophet
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Xichekolas
From what I read, the legal environment in your place of incorporation matters
as much as, if not more than, the tax rate.

So many companies incorporate in Delaware because it has extremely detailed
corporate case law history (and separate courts for corporate law), even
though it is more expensive to incorporate there than most other states.

I would imagine for the average startup it's more an issue of overhead costs.
Incorporating in Ireland, for instance, would require you to have a legal
expert in Irish law on the payroll (most likely an Irish Lawyer) and deal with
all the fancy tax forms I'm sure the IRS has for offshore companies doing
business in the US.

I highly doubt either of those places is a hostile legal climate by any means
(but IANAL!), but it seems like all that paperwork would be distracting from
your business when you are that small.

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SwellJoe
Don't bother, if you plan to ever raise money, get acquired, or go public.

I took the advice of an attorney in Texas and incorporated in Texas, with
plans to switch to an LLC/Corporation holding company combo when it began
making money--there's a well-known loophole in Texas tax law that allows the
first 15 million to go untaxed (SBC LLC are the most famous beneficiaries of
this loophole, and the most generous to politicians who keep it on the books).
But when I began talking to folks in the rest of the business world it became
apparent that those benefits were out-weighed by the negatives for a tech
company that plans to be acquired or go IPO.

Just incorporate in Delaware, and don't worry about it.

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waleedka
You won't save on taxes because you pay where you're doing business. So, if
your office is in California, or you hire people in California, then you'll
have to pay CA taxes. At lease that's how it is in CA, AFAIK.

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steve
Ireland and London are good for gambling or related ventures. Not sure why
you'd want to do it there otherwise.

