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MenuWhere should I incorporate my SAAS startup?
I'm British, float between Portugal and Brazil. See my paying customers as being US, Canada, AUS, NZ and UK. Want the simplest structure, banking, accounts obligations and tax. Initially I don't need to draw revenue, my plan is to grow subscriptions, I expect to get attention, and down-road would entertain investment if that door opens. Initially my focus is simple old school approach of getting paying customers, and proving the business model works.
Answers
It's really impossible to answer this question without a fuller analysis of your specific tax situation. "Float between" won't be the terminology used in a tax treaty!
That being said, we've attempted to distill down different incorporation options at Incorporations.IO which is a free comparison tool for looking at global incorporation.
Also there are plenty of articles on our FlagTheory.com website which talk about tax residency, bank accounts, obligations in terms of reporting and more.
You should talk to an attorney.
Stripe Atlas could also be a good starting point.
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In a startup with a globally-spread remote team, does it still make sense to incorporate in U.S./Delaware vs. somewhere overseas?
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Use Mattermark.com to find them. They have a 14 days free trial. The tool will let you filter by founding and type of company, so it will probably give you what you need.JC
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There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.TP
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What are some tried-and-true metrics for enterprise/ARR-based SaaS companies?
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What is the best business structure for a tech company?
It depends :) Financing: When you're ready to start raising funds, C Corps (especially Delaware) are still preferred in the VC world although some angels are increasingly willing to invest in LLCs. Risk: When you're just starting off it's okay to have a holding LLC with DBAs. As you grow one or more of the ideas, you may want to separate out the risk so that if one company has issues it doesn't hurt the others. But it isn't necessary when you're early on. Once you add employees, cofounders, and/or investors, it's probably time. Your holding LLC could have equity in the idea and you could setup the idea as a C Corp. It's a good structure. Also -- this ain't legal advice. Just general blahblahblah about legal structure. Really good article from a fellow Seattle startup attorney here: http://www.startuplawblog.com/choice-of-entity/BH
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