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Incorporating a business is probably one of the most tedious and frustrating process for any founder
I incorporated a US business as a non-US resident 5 months ago
Sharing what and why I did in this thread. Hope it help others gain some insights
I incorporated a US business as a non-US resident 5 months ago
Sharing what and why I did in this thread. Hope it help others gain some insights
Why I incorporated a US business instead of other countries
- I'm targeting global audience, @stripe/ @PaddleHQ is a must, they don't support a Vietnam business (where I'm)
- Other options: Estonia, Singapore. Upfront and annual costs are higher, benefits are less. More below
- I'm targeting global audience, @stripe/ @PaddleHQ is a must, they don't support a Vietnam business (where I'm)
- Other options: Estonia, Singapore. Upfront and annual costs are higher, benefits are less. More below
Estonia has a great e-Residency thingy, which allows you to start an EU business online. But it is not an all-in-one package, you'll have to work with multiple service providers.
After doing some research, http://incorporate.ee is the simplest to start with in Estonia, 65 EUR a month for an LLC. But when I actually started, it would cost upfront 360 EUR + 65 EUR/month, just to get started.
For Singapore, I spent a few hours to research, but the most reasonable (reputation + cost) solution I found cost $1000+. The ongoing cost is also high.
For the US, at that time, I found only @stripe Atlas and @tryfirstbase have good reputation and reviews from the community (now you also have @StartPackHQ)
Atlas costs $500 first year + ongoing cost in Deleware (~$400/year). At the time, there is only C Corp (now they also have LLC)
FirstBase is very similar but costs $399 first year + ongoing cost in Wyoming (~$30/year)
FirstBase is very similar but costs $399 first year + ongoing cost in Wyoming (~$30/year)
FirstBase also supports C Corp and Deleware options, but these only add costs to an indie business without any benefit. Read more about C Corp vs LLC http://firstbase.io/en/guide . Simply put, C Corp is easier for raising VC money, LLC pays less tax.
It's obvious that @tryfirstbase is my go-to. Also, I decided to go with them because I learned so much from their guide 
Cost: $399 upfront, $30+/year
Benefit:
- 1 year cost covered
- Incorporation + EIN + @BankMercury setup
- $20k perks (quite a few useful tools here)
Cost: $399 upfront, $30+/year
Benefit:
- 1 year cost covered
- Incorporation + EIN + @BankMercury setup
- $20k perks (quite a few useful tools here)
So I paid, got everything setup very quickly except for the EIN (a requirement to start on Stripe/Paddle). The EIN took 2 months because of COVID, nothing anyone can do.
After I got the EIN, FirstBase worked fast on finalizing everything, it took a week until I got my bank acc
After I got the EIN, FirstBase worked fast on finalizing everything, it took a week until I got my bank acc
I was almost ready. To start on Stripe, I needed a US phone number. After some research, I used @Sonetel to get one, very easy and free (you'll have to show their brand name on your site, which is fine). All messages will be forwarded to my actual phone number.
It's ~2.5 months now, I got everything setup. What a relief!
I finally got my Stripe setup.
Pro tip: Stripe allows to create multiple accounts/brands for different products while using the same underlying legal entity/EIN. Confirmed with their support!
I finally got my Stripe setup.
Pro tip: Stripe allows to create multiple accounts/brands for different products while using the same underlying legal entity/EIN. Confirmed with their support!
Then, tax day came, I made zero money in 2020 but my business was established in Dec 2020 
I'd still have to file tax. First time ever, had no idea. FirstBase partnered w/ Bookmate, so I booked a call, free. All they offered is "it is complicated, we'll handle for you" - $350
I'd still have to file tax. First time ever, had no idea. FirstBase partnered w/ Bookmate, so I booked a call, free. All they offered is "it is complicated, we'll handle for you" - $350
I did some research and know that all I needed was an informational filing. I went to Fiverr and looked for a freelancer. There were a lot of them! There was a 4.8-star guy whose expertise is on Wyoming LLC and it costs $60. So I worked with him. https://www.fiverr.com/share/1b8qP6
I just sent whatever the guy asked me for. Then he sent me the files. They were 1120 and 5472 forms. I looked at them just to check if the info is correct and ignored most parts.
Last step, I had to fax these files to the IRS 
. Never thought that I'd use fax once in my life. After some research, I used http://www.fax.plus to submit. The product is dope and it's free!
. Never thought that I'd use fax once in my life. After some research, I used http://www.fax.plus to submit. The product is dope and it's free!
Alright, I think that is it, it is really long already 
I'd still recommend @tryfirstbase, @sonetel, and @bankmercury for anyone looking to start. They got the work done!
Last note: this is NOT a legal advice
I'd still recommend @tryfirstbase, @sonetel, and @bankmercury for anyone looking to start. They got the work done!
Last note: this is NOT a legal advice
