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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
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">
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& #39;m targeting global audience, @stripe/ @PaddleHQ is a must, they don& #39;t support a Vietnam business (where I& #39;m)
- Other options: Estonia, Singapore. Upfront and annual costs are higher, benefits are less. More below
- I& #39;m targeting global audience, @stripe/ @PaddleHQ is a must, they don& #39;t support a Vietnam business (where I& #39;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& #39;ll have to work with multiple service providers.
After doing some research, http://incorporate.ee"> 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 .">https://firstbase.io/en/guide&... Simply put, C Corp is easier for raising VC money, LLC pays less tax.
It& #39;s obvious that @tryfirstbase is my go-to. Also, I decided to go with them because I learned so much from their guide https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍🏻" title="Daumen hoch (heller Hautton)" aria-label="Emoji: Daumen hoch (heller Hautton)">
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& #39;ll have to show their brand name on your site, which is fine). All messages will be forwarded to my actual phone number.
It& #39;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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤦🏻♂️" title="Mann schlägt sich die Hand vors Gesicht (heller Hautton)" aria-label="Emoji: Mann schlägt sich die Hand vors Gesicht (heller Hautton)">
I& #39;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& #39;ll handle for you" - $350
I& #39;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& #39;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 ">https://www.fiverr.com/share/1b8...
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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">. Never thought that I& #39;d use fax once in my life. After some research, I used http://www.fax.plus"> http://www.fax.plus to submit. The product is dope and it& #39;s free!
Alright, I think that is it, it is really long already https://abs.twimg.com/emoji/v2/... draggable="false" alt="🥶" title="Cold face" aria-label="Emoji: Cold face">
I& #39;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& #39;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
