Questions

Silicon Valley is more about physical proximity than just incorporation. There are three reasons for this:

1. Access to capital - no where on the planet even comes close for tech start ups

2. Access to middle management - as you scale you need to be able to grow very very fast, which has a lot of challenges that most people in most parts of the world don't know how to deal with but in Silicon Valley you can walk across the street to Facebook and hire someone who helped them do it

3. Mindset - the deals are simply bigger and the mindset is bigger there

All of this being said an "internet company" doesn't necessarily imply raising money or being what some might call a traditional "start-up". In this case the US is about the worst place in the world to be because the taxes are the highest and it's the most litigious country on the planet.

However, the misnomer is that you can reduce taxes based on where you incorporate...you often can't if the substance doesn't match the form so you need to consider carefully the facts of the company and then build a corporate structure to match in order to get the optimal structure.

Feel free to contact me if you've got any questions.


Answered 8 years ago

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