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Re:Why you might not want to incorporate in the USA by mjolk on Thursday March 13, 2014 @06:20AM (#7390930)
> All of a sudden, we were forced to figure out, how much we actually sold in each of those states, where we hired people

Not to be offensive, but differences in state rules should have been expected, given the name of the country. How hard do you think it would be to get a random sample of 50 people to decide on a movie? Now swap people with territories and movie with governance.

This blog post is just ranting and whinging that some paperwork had to be done when starting a business on foreign soil.

I worry about the quality of Razuna as a product if attention to filling out a form is a huge ask.

Re:Why you might not want to incorporate in the USA by tankenmate on Thursday March 13, 2014 @06:48AM (#7391006)
After having done business in many other countries you begin to realise that certain countries have a love affair with needless bureaucracy; the US and it's fragmented federation being one of them. Take Australia for example; even though it is a federation of states (and territories) like the US it has one uniform goods and sales tax that is consistent across the country. In fact states regularly come together to share best practice between legislation and administration in order to increase efficiencies within the country. Even road laws (which are a state matter in Australia) have been deliberately homogenised between states. Even countries like the UK with it's constituent nations and territories work hard at having a uniform and efficient system for businesses to do what they need to do.

Saying "Just deal with it" is a cop out that will end up consigning your country to a worsening economic future. Tourists are already turned off from coming to the US because of the TSA issues. Having a "Just deal with it" attitude will also drive away business. This will lead to a worsening trade imbalance and the joys that come forthwith.

Re:Why you might not want to incorporate in the USA by mjolk on Thursday March 13, 2014 @08:04AM (#7391225)
While this thread is bound to fill with anecdotes...

> Tourists are already turned off from coming to the US because of the TSA issues.

I'd love to agree with you, but there's that pesky reality that disagrees with your claim:

http://cityroom.blogs.nytimes.com/2012/12/31/a-record-year-f...

>Even countries like the UK with it's constituent nations and territories work hard at having a uniform and efficient system for businesses to do what they need to do.

Population UK: 63mm Population USA 310mm

and support your claim that the territories work hard at having an efficient system for businesses.

> Having a "Just deal with it" attitude will also drive away business.

The paperwork really isn't hard. What makes you think that filling out some tax forms is keeping people from opening up shop in America?

Re:Why you might not want to incorporate in the USA by beagle3 on Thursday March 13, 2014 @08:38AM (#7391359)
> The paperwork really isn't hard.

Yes, it is. Many of my friends are business owners, most of them have some international business. I've been in touch with a variety of tax professionals in different countries through the years.

In the last 10 years or so, I've seen more than one business or partnership outside the US state in its charter that "shareholder may not be a US tax payer, and may not sell his shares to one, and will sell his shares to someone who is not if he becomes one", because of how complicated it makes things.

If you think US paperwork is sane or is not hard, it is probably because you did not have enough exposure to it, or alternatively, not had exposure to a saner system.

Objectively: US Federal Tax code is >71,000 pages (as of 2009 when I checked - probably longer now). And it applies to every american. NYS tax code is some 15,000 more pages; if you are doing significant business in NYS, that's about 10 times as many details to be aware of than in any other country that I'm aware of.

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:20AM (#7391569)
Spot on ;-)
Re:Why you might not want to incorporate in the USA by beagle3 on Thursday March 13, 2014 @08:29AM (#7391315)
I agree the US has this bureaucracy / uniquness fetish among states.

But also, consider that Australia with 22M people compares with New York State, and is e.g. only 60% of the population of California. And inside a state, taxation is much more uniform.

(New York State is a good example if YOUR point, as New York City, Yonkers and a couple other cities have additional weird taxes you have to be aware of)

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @08:23AM (#7391295)
Filling out "a form" is not the issue outlined. Filling in "hundred of forms', taking up to 6 months and not being able to pay employees is.

Furthermore, Razuna is successful. All we wanted is to continue on US soil and expanding by hiring US people and thus paying US taxes = bringing money to the US.

That's what the blog post is all about. It has been written to show what it takes to incorporate for a European company.

Re:Why you might not want to incorporate in the USA by mattlutze on Thursday March 13, 2014 @09:04AM (#7391482)
If I may, it sounds like the hurdles encountered were:

- Paperwork and fees/taxes in each state an employee works in. - Securing a work visa to enter and work in the US.

But, it sounds like, if we were to swap places and Nitai lived in the US, trying to start a business in Europe, he'd be faced with

- Paperwork and fees/taxes paid to each country his employees worked. - Securing a work visa to enter and work in the EU.

Depending on the country American Nitai wanted to live/work in, the visa may be easier/harder than the US visa, I'd imagine. But I'm not sure that the kinds of difficulties would be much different.

You're putting up a lot of strawmen here.

Example: "He will pay his taxes in Denmark, Germany, Switzerland or wherever he freely chooses to live. In Europe, you can live in whichever country you like. Most countries here seem happy to receive taxes."

In the US, you can freely live in whichever state you want. It's rhetorically dishonest to compare the United States to a single country in the EU.

--

I'm sorry that your experience was a poor one. Indeed, US laws are different, and if you went into the experience expecting it not to be different, that would certainly have been a shock. I make no claim our system is better than Denmark's (you shouldn't imply all of the EU is the same as Denmark, by the way). But it's a disingenuous platform to decry the US because you received inadequate counsel on setting up a US business or failed in your due diligence...

I'm sure, however, the pro-European camp of your readership will feel quite satisfied with the tone and subject matter of your post.

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:32AM (#7391640)
This is NOT about PRO-Europe or PRO-USA. It is about how difficult the current government makes it to come to the US, build business and live there (as a European).

I personally know one CEO who runs a 80 Mil./year company in the USA, has 250 employees (3/4 are US citizens) but only received a green card or allowance to stay longer then one year in the USA 10 years into the business.

That said, you can't compare the USA with the European immigration laws. As an example, there are many Americans living in Berlin. The way you can live in Berlin is by flying to Berlin and show up at the immigration within a week and tell them that you want to move here, pay taxes and work. It is even easier if you already have an employment.

Additionally, there is something like a "Language" & "Artist" visa in Germany. Under these visa's you can simply stay and live here. You can even build businesses and start employing people.

That's Germany. Want to live in Denmark? Same there. Want to open a business and live in Switzerland. Go register yourself and work. Right, you cannot vote and don't have a nice "credit" but at least you are given the chance to build something.

Now, if there would be a startup-visa in the USA, I'm sure there would be many willing to move and try to build a business in the USA. But as it is now, you can't. I'm not taking way jobs from any US citizen, quite the contrary, we are hiring people and try to contribute to the US system.

Re:Why you might not want to incorporate in the USA by bpaluzzi on Thursday March 13, 2014 @10:55AM (#7392170)
Sorry, but your assertion that an American can simply come to Europe and work is false. In Germany, like in the UK, you most definitely CANNOT just come over and declare your intention to work. "If you are coming to work in general employment (that is, a job that does not require you to be highly skilled or highly educated), you will need to apply for a residence permit for the purpose of general employment, and you will only be eligible if the position cannot be filled by a worker from the EU/EEA or Switzerland." (from http://www.expatica.com/de/essentials_moving_to/essentials/g...). It's the same in the UK.

Germany _does_ have the "Blue Card", which is similar (at least at the very highest level) to the now discontinued Highly Skilled Migrant Worker / Tier 1 visa in the UK. The Blue Card allows you to work in Germany as long as you have a college degree and make above a certain salary (usually above €45000).

Both of those scenarios are much more involved than the way you described, it however.

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:23PM (#7396381)
As a company owner, wanting to open an office, deploy people and live in the chosen country, is much much easier in Europe then in the US.

Just about every country welcomes you and even offers help in the form of some sort of fund or start-up program.

Re:Why you might not want to incorporate in the USA by bpaluzzi on Friday March 14, 2014 @06:01AM (#7397766)
Again, that's simply not true. A US employee trying to work in the EU will have just as difficult of a time as vice versa. Please look at the examples I and others have posted.
Re:Why you might not want to incorporate in the USA by mattlutze on Thursday March 13, 2014 @10:57AM (#7392187)
You cannot work on a Language visa in Germany[0], and artists in Berlin are special as the country wants to promote it as an art capital of Europe[1]. In almost every case, a non-EU/Schengen citizen needs to show ability to support him/herself when moving to Germany; that person must already have a job offer, which must pay at least 37(STEM) or 47,500 (others) EUR[0].

Non-EU folks in Germany as well, for example, don't get the equivalent of a "green card" out the gate either. Looks like it's 5 years in Germany, which happens to be the same for the United States.

As a manager/executive with your company, I'm surprised there weren't EB-1 Visas available, which is exactly the tool meant to support the case you were looking at. Or EB-5 visas, because interestingly, there actually is a Visa (and Green Card track) for entrepreneurs in the US [2][3].

US immigration policies are indeed crazy sometimes. Your friend probably moved to the US around/not long after 2001, I'll bet? Everything ground to a half around then as DHS was getting set up.

But if you're listing all of these failings and I'm finding the opposite to be true with 20 minutes of Googling at a time, I'm suspect of the quality of support you got from your lawyers. Again, I feel a great deal of empathy for what sounds like you guys getting screwed by poor representation. I've had many friends enter the US to work and start businesses with little undue stress.

[0]: http://www.make-it-in-germany.com/en/working/guide-to-workin... [1]: http://www.bbk-berlin.de/con/bbk/front_content.php?idart=195... [2]: http://www.uscis.gov/green-card/green-card-through-job/green... [3]: http://en.wikipedia.org/wiki/EB-5_visa

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:20PM (#7396371)
Thank you for your comment. As a fact I know 10+ US citizens that have had no problem coming to Germany and live and work. All self employed and sufficient to provide for themselves for some time.

It might have changed, but the last time I've checked it was way easier then getting any Visa in the USA.

Speaking off, yes, we tried to get a B* visa but the 67000 visa they issue per year was filled within 3 days. One can apply again in June/July (not exactly sure).

Re:Why you might not want to incorporate in the USA by mattlutze on Friday March 14, 2014 @04:39AM (#7397527)
As a fact I know 10+ European citizens that have had no problem coming to the US to live and work... you're a techie, we both know anecdotes are not data.

No one challenges that US visas are difficult at times to get. But if it was such an issue, I've gotta ask -- how is your software company's offering and positioning so unique that only you could manage operations from the US?

Also, to note, B1/B2 visas are for "temporary" visits for work or pleasure. There were multiple EB-* visas for permanent relocation. Even so, B1 visas are granted by the millions and are valid for Europeans for 10 years...

Re:Why you might not want to incorporate in the USA by dusanbab on Friday March 14, 2014 @07:48AM (#7398134)
Regarding your second point, why should he delegate that critical task to someone he hasn't worked with extensively before?

Why should he prove someone else couldn't do that job? They probably could, but he can do it better and it's his money/equity after all.

Re:Why you might not want to incorporate in the USA by wh0car3s on Thursday March 13, 2014 @11:54AM (#7392615)
I'll echo mattlutze and say that the EB visas are a great track to come here in the US.

Also, I'm a foreigner with a non-immigrant visa, but that didn't stop me from incorporating and I know that if I hire someone or did business in another state I'll have to register or incorporate in that state (I got that by my own research, if that wasn't given to you then you received bad counsel).

Not anyone can just come to Europe and just live there, In the countries you mentioned, I'll need a job offer before I can even start the process to get a work visa (I can't even visit Europe without a Schengen visa).

Re:Why you might not want to incorporate in the USA by nitai on Thursday March 13, 2014 @09:27PM (#7396386)
> I can't even visit Europe without a Schengen visa

Where are you from? US citizens can freely come to Europe without the need for any Visa. You can even freely travel within the Schengen area without showing your passport once.

Re:Why you might not want to incorporate in the USA by wh0car3s on Friday March 14, 2014 @11:47AM (#7399585)
Not a US citizen (yet) - I'm a long way from getting it, considering that I'm just in the process of getting a green card; But to answer your question, I'm from the Philippines..
Re:Why you might not want to incorporate in the USA by bpaluzzi on Friday March 14, 2014 @06:15AM (#7397810)
They can come to Europe, but they cannot work.
Re:Why you might not want to incorporate in the USA by mcv on Thursday March 13, 2014 @06:41AM (#7390994)
It's not just ranting about some paperwork. It's pointing out that the paperwork is far worse than in the EU (which is far less unified than the US, but at least the labour market is pretty transparent), and actively discourages companies from incorporating in the US. The US is hurting its own bottomline here.

Now countries shouldn't make it too attractive for companies either; then you get a race to the bottom where companies get tax exemptions just for creating a handful of extra jobs. And this absolutely happens; I believe there are some European countries where taxes for foreign companies are ridiculously low. So the EU isn't doing everything right either. But shouldn't there be some sensible middle ground where it's easy to open up shop in a different country, without having to jump through insane hoops, while paying a normal, sane amount of tax?

Re:Why you might not want to incorporate in the USA by davidw on Thursday March 13, 2014 @06:49AM (#7391016)
> the EU

No, Denmark. If you want paperwork, there's plenty to be had here in Italy!

Re:Why you might not want to incorporate in the USA by crusso on Thursday March 13, 2014 @10:14AM (#7391878)
As a nation and a culture, the USA has decided that business and business concerns aren't as important as they once were. I'd go so far as to say that there has been a great deal of hostility toward businesses lately. Financial success in the mainstream media has become something to criticize and suspect as "ill gotten".

There's a reason why the USA continues to drop in business freedom rankings. It's not just this one guy's whining.

As an American, I don't want to run away from this criticism. I think we should own it and make decisions about what to do about it based upon acceptance of it, not rationalization and denial.

Re:Why you might not want to incorporate in the USA by vacri on Thursday March 13, 2014 @07:01AM (#7391049)
differences in state rules should have been expected, given the name of the country

'United'?

Re:Why you might not want to incorporate in the USA by mhurron on Thursday March 13, 2014 @08:12AM (#7391250)
It's only united in war. Other than that it each state, county and municipality is run like it's own little fiefdom.
Re:Why you might not want to incorporate in the USA by mjolk on Thursday March 13, 2014 @08:07AM (#7391236)
And yet there's a star for each state and stripes to denote the original handful.

We have federal laws and state laws to accommodate regional preferences.

Re:Why you might not want to incorporate in the USA by shadowmint on Thursday March 13, 2014 @06:39AM (#7390986)
oh come on, if you're going to be a jerk just do it, don't fill your post with trite crap like 'not to be offensive, but...'
Re:Why you might not want to incorporate in the USA by mjolk on Thursday March 13, 2014 @08:06AM (#7391233)
It was softening it so the reader would know that I'm not trying to be obtuse. Part of language is communicating meaning, not just trying to get a string of words together.

None of that was being a jerk.