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Interesting points. Well, I am incorporated in Jamaica (where I am), but a lot of my business will be US based. So, based on what I keep reading, if I am incorp

Interesting points. Well, I am incorporated in Jamaica (where I am), but a lot of my business will be US based. So, based on what I keep reading, if I am incorporating in the US, it is best to incorporate in Delaware (not only because future investors prefer it, but because of lower/negligent state taxes). Those were the main reasons, but I will look into it, given your feedback. My main reason for incorporating in the US, is to get a US bank account, US merchant account, etc. - which makes everything much easier when dealing with other US companies. Thoughts?

philiphodgen 16y ago
Before you do anything, go talk to the bank you want to do business with. I formed 2 companies in Delaware for gentlemen living in the Caribbean and getting accounts opened was a nontrivial task. Can be done, but line it up first. Same thing is true for your merchant account. Once you jump those practical hurdles the next question is tax. Are you "doing business" in the US or not? This is going to drive your US tax exposure. This is at a Federal level as well as state level. Once you understand the tax implications -- then you probably form the company and start making money. Consider also the overhead of having the Delaware (or other location if preferable) corporation. I figure you should budget $3,000 per year in overhead to keep it afloat. Filing fees, accounting fees, legal fees, etc. That's with minor business operations.
- marcamillion 16y ago
  Well...regarding the banks...that's the thing. I have approached, easily, about 5 - 7 different banks (including Silicon Valley Bank, and Square1Bank) and they all are hesitant without a US corp. I am trying to get my bank account setup first, if there was a US based bank that allowed me to setup a regular business checking account using foreign credentials, I would definitely prefer that route. Do you happen to know of any that I can try? Never considered that just having a presence in Delaware would run me about $3K/year. That's interesting.

philiphodgen 16y ago

Before you do anything, go talk to the bank you want to do business with. I formed 2 companies in Delaware for gentlemen living in the Caribbean and getting accounts opened was a nontrivial task. Can be done, but line it up first. Same thing is true for your merchant account. Once you jump those practical hurdles the next question is tax. Are you "doing business" in the US or not? This is going to drive your US tax exposure. This is at a Federal level as well as state level. Once you understand the tax implications -- then you probably form the company and start making money. Consider also the overhead of having the Delaware (or other location if preferable) corporation. I figure you should budget $3,000 per year in overhead to keep it afloat. Filing fees, accounting fees, legal fees, etc. That's with minor business operations.

marcamillion 16y ago
Well...regarding the banks...that's the thing. I have approached, easily, about 5 - 7 different banks (including Silicon Valley Bank, and Square1Bank) and they all are hesitant without a US corp. I am trying to get my bank account setup first, if there was a US based bank that allowed me to setup a regular business checking account using foreign credentials, I would definitely prefer that route. Do you happen to know of any that I can try? Never considered that just having a presence in Delaware would run me about $3K/year. That's interesting.