Delaware v UK Ltd...Or both?

Hi All,

Apologies as I know this has been asked 100 times, however just want to see what people would do in my situation.

A buddy and mine are looking at doing a JV and wrapping all of our sites and other digital services under one company. We target mainly US, but will be looking to target more of the UK market as well.

The company has or will be generating revenue via affiliate sites, lead generation, Digital Services etc etc

Activities will include the buying/selling of digital properties/services to other businesses both UK and US.

On this basis, what would be the recommended choice of business formation?

Appreciate your thoughts and advice!!

J

Are both of you UK tax resident? If so, I would register in the UK. Lower corp taxes and getting an EIN / bank account in the US is quite difficult. The activities you've listed don't require any form of registration in the US so you could trade with your UK company without problem. If you're actually selling services to customers rather than just affiliate, you might have some resistance from clients as they'd have to make an international transaction? I think stripe needs a US company to bill in the US.

Either way, formations in the UK are easy. If you want advice on incorporating in the US, though, I'd be happy to help you with picking a state, talking about registered agents, getting an ein, and opening a bank account.

UK all the time.

Best system ever.

I think that if you incorporate outside of the US, all your payments from corporate sources will be subject to a Withholding tax. The same will happen if you set up a corp or if your LLC is treated as one in the US, when receiving dividends. Despite the lower rates due to the tax treaty. I also think the US won't tax your foreign generated income.

Evaluate how much tax you would need to pay over foreign income in the UK. Compare to how much you would lose from withholding tax in the US.

PD: this is not professional advice, make your own due dilligence.

a friend of mine runs vlsa.com (reliable London business correspondence address) - let me know if you want me to introduce you to him. they should be able to sort you out a-z

personally recommended. .. Pavel has been my accountant for last 5 years.. maybe more

disclaimer: I was one of the co-founders. left to concentrate fully on my hosting company.

dm me if you need to be introduced (I don't get affiliation fees on that).

An US LLC only worths if you are not going to do business there You don't wanna deal with the IRS