3 ms·
For those of you starting companies now, probably the last thing you should be optimizing for is the amount of corporate tax your company will be paying after i
by mtviewdave 11y ago
For those of you starting companies now, probably the last thing you should be optimizing for is the amount of corporate tax your company will be paying after it becomes a unicorn.
- nieksand 11y agoI'm not sure this is true. Many decisions you make today can be changed/fixed-up later. The company I'm at started as a WA LLC before re-incorporating as a Delaware C-corp and taking a $9.2M A-round. Bit of cost and hassle but not the end of the world. We've adjusted the structure of our engineering org several times both as our situation changed and as we learned what worked for us. Again, changeable. However, if you choose to incorporate in the USA you may end up with a permanent, unfixable disadvantage relative to your international competitors. The political left seems hell-bent on both keeping world-wide taxation and bringing in Hotel California style rules. This does not apply to just unicorns. Even a mid-size corp with a large international presence is impacted. You can ignore all this if your goal is to stay both small and domestic. But an organization like Y-combinator which can spread the legal cost/overhead across its cohort? It would be something worth giving serious thought.