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It seems to gloss over this .. If I form a startup in the USA and it goes belly up once assets are sold off to pay creditors I am free..however in the EU if st
by shareme 15y ago
It seems to gloss over this ..
If I form a startup in the USA and it goes belly up once assets are sold off to pay creditors I am free..however in the EU if startup goes belly up you are still on the hook
as far as the difference between what is owed creditors and what the assets sold for..or am I wrong on this point?
- timxpp 15y agoYou are wrong. A corporation in Germany/EU offers the same protection as a US corporation.
- Locke1689 15y agoIn the US it costs maybe a couple hundred bucks and a week or so to set up an LLC and an S-corp(http://en.wikipedia.org/wiki/S_corporation http://en.wikipedia.org/wiki/S_corporation). How much would this cost and how long would it take in the EU?
- martin_k 15y agoThe minimum share capital of a GmbH in Germany is 25,000 EUR. Registering should not take much longer.
- Locke1689 15y ago25,000 EUR is a fair bit of money, especially considering the avg. YC investment is < $20k, IIRC. Also, correct me if I'm wrong, but it looks like a GmbH operates almost nothing like an S-corp.
- blumentopf 15y agoIt depends on the type of business entity that you choose (Rechtsform). If you incorporate as an Einzelunternehmen (single person company) or GbR (multiple person company, Gesellschaft bürgerlichen Rechts), you're fully liable. If on the other hand you open up a GmbH (limited liability company, Gesellschaft mit beschränkter Haftung) or AG (joint-stock company, Aktiengesellschaft), you're not on the hook if the company becomes insolvent. The catch is that if you incorporate as an Einzelunternehmen or GbR, it's much easier to get credit from banks or other stuff because you're fully liable. EU law allows you to incorporate in a different EU country with a type of business entity common there, but it's usually more convenient to incorporate in the country where you're residing.