4 ms·
We'll I don't think tax is a good idea to base your decisions for a startup. There's a saying that the tail wags the dog. Your business is the dog and tax is
by camz 16y ago
We'll I don't think tax is a good idea to base your decisions for a startup. There's a saying that the tail wags the dog. Your business is the dog and tax is the tail. California state is almost as disgusting as New York when it comes to how aggressive, how many taxes they have and how high their tax rates are. BUT, Silicon Valley, Cali is where your startup is probably going to get its funding so you sorta dont really have a choice in where to start.
Starting a company in Delaware isn't something that you need to worry about. Incorporating in Delaware is for their caselaw. Delaware has a VERY clear line of cases where they break everyone detail down to its minuet detail so that when you get sued, the lawyer is very clear as to your options and likely outcomes. Also, very important is that Delaware has pro-majority ownership rules. Delaware gives the majority owner of the company extensive authorities on what they're allowed to do. Other states will be less pro-business and protect the minority interest, thus limiting the power of the majority owner.
The united states is special. From my knowledge thusfar, i think the US is the ONLY country that taxes your worldwide income. Other countries wont tax income earned elsewhere. If you live in the US, then you'd pay taxes on your US income. But, if you become a resident of the US, then the US might try taxing your worldwide income too! lol. I'd say that there's a higher change of you paying double taxation in state tax than federal tax.
- rdl 16y agoThe Philippines also tax worldwide income. I think they and the US are the only which ALWAYS tax all worldwide income of their citizens/permanent residents. Actually, a lot of countries tax worldwide income if you are resident in the country; it's just that there is a procedure to establish non-residence (e.g. for Canadians who are outside Canada for a certain number of months/years, or UK people), and then they are not liable to tax. A lot of other countries only tax some people on worldwide income (e.g. not taxing foreign income of new citizens in New Zealand for like 4 years), and others never tax foreign income. International tax law is a constantly shifting swamp of lameness. (there's also the Foreign Earned Income Exemption (around the first $92k/yr of income); i.e. why I have been on vacation for Q3/Q4 2010; it saved me more money to remain outside the US and work on my startup part-time while SCUBA diving and exploring Asia, than returning to the USA mid-year).
- camz 16y agoI agree, international tax is constantly shift because the economy is shifting away from being isolated to individual citizens. I'm not surprised that the Phillipines have the same tax rules as the united states since they were held by the US for so long. But, I stand corrected. I should've been clearer and spoken less in general terms in my definition of how world wide income is taxed in the US.