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Incorporation: In a startup with a globally-spread remote team, does it still make sense to incorporate in U.S./Delaware vs. somewhere overseas?
EJ
EJ
Edmund John, Emerging Markets Entrepreneur & Investor answered:

Delaware C-Corp
I usually Delaware is the best choice for any startup looking for fundraising with a US focus.

However, if you are a remote and global team, an overseas or foreign corporation or US tax purposes might make sense.

You'd have to talk to an advisor who can dive into your situation, but it would be more difficult for the US owner come tax time, as he'd likely have to file form 5471 to the IRS for any controlled foreign corporation, and form 90-22.1 for any foreign bank accounts.

There are a lot of other concerns I didn't hear you raise that entrepreneurs usually have and ask me about, namely banking and merchant accounts/ payment processors.

In terms of accepting online payments, any US corporation or LLC is far and away the best option for a company.

It's difficult to suggest without knowing more about the company but you might explore Delaware, Wyoming, Hong Kong and other offshore jurisdictions for your legal entity. Each tend to have positives and negatives and there is no one size fits all solution.

I do write about issues of incorporation quite regularly on my website FlagTheory.com - so you can read those articles for free, or we can schedule a call - Clarity.fm/incorporation when you have specific questions.

Thank you and hope this was helpful!

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