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Has someone incorporated in Delaware and Headquartered in Germany? We are talking small budget here. Is this a nightmare or could work in some instances? Taxes

by _up 11y ago

Has someone incorporated in Delaware and Headquartered in Germany? We are talking small budget here. Is this a nightmare or could work in some instances? Taxes could be a problem I heard. I am working on a feedly competitor (with Popularity Sorting) and it would make sense to concentrate on the US Market first anyway.

deleted 11y ago
[deleted]
germanier 11y ago
From German view you will have to follow almost the same rules and regulations that a German company would have to follow, so not really an advantage on that front. Doing taxes will be complicated though. You would have to pay the same German taxes that every German company needs to pay but of course the US might also want their share. Navigating double-taxation treaties is not easy. If you need a legal presence in the US it's actually easiest to start two companies, one on each side of the pond, with one of them owning the other. You should definitely go to a tax consultant knowing this stuff if you consider doing such things.
- kuschku 11y ago
  This is especially an issue with the US, which is notorious for double-taxing income of its citizen that was generated (and taxed) in other countries.
  - kspaans 11y ago
    Are you referring to double-taxing or the US's "taxing income earned abroad" policy? It looks like the US has many tax treaties[0], and it's my understanding that these treaties will usually shield you from double-taxation. What the US does do, however (as I understand it), is tax you on the difference between the income tax you pay in a foreign country and what you would pay if you were in the US. In other words, living in a foreign country with lower income tax than the US won't let you avoid paying at least as much income tax as if you were still in the US. (And if you move somewhere with higher taxes the US won't charge you any extra (nor give you tax credits! :P).) 0 - https://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z https://www.irs.gov/Businesses/International-Businesses/Unit...
    - kuschku 11y ago
      Extra paperwork (especially when you have to deal with paperwork in multiple languages) can get insanely expensive, though. Which makes the "incorporate outside the US" ineffective.
kobayashi 11y ago
Looking forward to seeing your beta product! Where can I keep apprised of your company's news?
- _up 11y ago
  Thanks. We will launch our beta on feedcred.com in the next weeks. But we haven't setup a dedicated blog or social media yet. I must admit registering a company and marketing are things I have to do my due diligence on very soon.
  - kobayashi 11y ago
    Good luck, it's a steep learning curve but well worth it. Q: In function, how does the popularity-based sorting differ from feedly's current popularity algorithm?
    - _up 11y ago
      Feedly doesn't really sort by Popularity. Instead they simply load ca. 20 entries and select the three most popular entries on the client side as Featured. That being said at scale you have to compromise one way or other. The Idea behind my popularity algorithm is that I don't want to calculate what is popular among the Users of my service. Instead I want to estimate what is popular with the original User base of each Feed you subscribe to. I think the average User base of The New York Times is different from the typical reddit, twitter or facebook crowd. So this should be an interesting Differentiator.
      - kobayashi 11y ago
        I'm significantly more excited about your beta now that you've explained it. I think that's a unique and a potentially great way to do popularity ranking. Fingers crossed that you're also going to have an eye for security

by _up 11y ago

deleted 11y ago

[deleted]

germanier 11y ago

From German view you will have to follow almost the same rules and regulations that a German company would have to follow, so not really an advantage on that front. Doing taxes will be complicated though. You would have to pay the same German taxes that every German company needs to pay but of course the US might also want their share. Navigating double-taxation treaties is not easy. If you need a legal presence in the US it's actually easiest to start two companies, one on each side of the pond, with one of them owning the other. You should definitely go to a tax consultant knowing this stuff if you consider doing such things.

kuschku 11y ago
This is especially an issue with the US, which is notorious for double-taxing income of its citizen that was generated (and taxed) in other countries.
- kspaans 11y ago
  Are you referring to double-taxing or the US's "taxing income earned abroad" policy? It looks like the US has many tax treaties[0], and it's my understanding that these treaties will usually shield you from double-taxation. What the US does do, however (as I understand it), is tax you on the difference between the income tax you pay in a foreign country and what you would pay if you were in the US. In other words, living in a foreign country with lower income tax than the US won't let you avoid paying at least as much income tax as if you were still in the US. (And if you move somewhere with higher taxes the US won't charge you any extra (nor give you tax credits! :P).) 0 - https://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties---A-to-Z https://www.irs.gov/Businesses/International-Businesses/Unit...
  - kuschku 11y ago
    Extra paperwork (especially when you have to deal with paperwork in multiple languages) can get insanely expensive, though. Which makes the "incorporate outside the US" ineffective.

kobayashi 11y ago

Looking forward to seeing your beta product! Where can I keep apprised of your company's news?

_up 11y ago
Thanks. We will launch our beta on feedcred.com in the next weeks. But we haven't setup a dedicated blog or social media yet. I must admit registering a company and marketing are things I have to do my due diligence on very soon.
- kobayashi 11y ago
  Good luck, it's a steep learning curve but well worth it. Q: In function, how does the popularity-based sorting differ from feedly's current popularity algorithm?
  - _up 11y ago
    Feedly doesn't really sort by Popularity. Instead they simply load ca. 20 entries and select the three most popular entries on the client side as Featured. That being said at scale you have to compromise one way or other. The Idea behind my popularity algorithm is that I don't want to calculate what is popular among the Users of my service. Instead I want to estimate what is popular with the original User base of each Feed you subscribe to. I think the average User base of The New York Times is different from the typical reddit, twitter or facebook crowd. So this should be an interesting Differentiator.
    - kobayashi 11y ago
      I'm significantly more excited about your beta now that you've explained it. I think that's a unique and a potentially great way to do popularity ranking. Fingers crossed that you're also going to have an eye for security