How and where you establish your first legal entity (be it a corporation, limited liability company, etc.) in order to do business is not necessarily such an im

How and where you establish your first legal entity (be it a corporation, limited liability company, etc.) in order to do business is not necessarily such an important decision. Of course, there will be tax, accounting and administrative implications. Also, in some structures and some legal systems, giving equity as compensation to employees is not that easy or could have unexpected consequences. Unless you have investors lined up, or expect to grow exceptionally fast, you usually have plenty of time to change the legal entity under which you operate. Furthermore, as you grow, it is not unlikely that you will have legal entities in multiple countries, using different legal structures. For example, a Delaware Corporation in the US, if you are doing a lot of business in California, you will need a California legal entity as well (iirc), maybe an Ltd in the UK and one in another EU country. Basically, you should probably have a local legal entity in every country where you will have employees. It's probably a good idea to get a lawyer to help you out. You should be able to find one wherever you wish to start your business who specializes in doing just that. I hope this helps.