July 4, 2019

American founders and expats: Where did you establish your business?

Monica Lent @momoko

Where is it actually BETTER to create a business, as an American living abroad? In terms of taxes, future investment, etc.

For example, I'm about to obtain permanent residency in Germany, meaning I can stay in the country regardless of employment status. After I receive the visa, I have the opportunity to create a business in either the United States or here in Germany. Or, I can create an American business and a German branch? Or the other way around? Who knows!

The tricky thing is there are not that many tax advisors who are experts on two tax systems. Luckily we have a handful in Berlin, but being completely "correct" seems near impossible as a lot is left to interpretation.

For American founders abroad: where did you establish your business and why? Was it the right choice?

  1. 1

    I have not started a business abroad, but I have heard that it is much easier to get venture capital if you are running a company in America, especially a Delaware C corp. If that is a possibility for you down the road, it might be worth considering. Perhaps you don't need one expert on both systems, but simply two experts who could each give you a tax breakdown, and then you could compare from there. Best of luck.