In the past years, we have helped founders from Europe put their feet down in the USA in various ways. We have helped them use Stripe Atlas; we did it manually ourselves, and we bought shell companies. Years of experience have helped us understand what is essential and what is challenging, particularly from the perspective of European founders. We have, therefore, partnered with Firstbase to deliver the best incorporation experience possible.
How is Firstbase + Nlaw better than alternatives?
There are numerous ways to incorporate your Delaware C-Corp remotely. But we think our solution is the best for the following reasons.
Pricing. We have priced incorporation at $350.00. That includes all filing fees. Stripe Atlas is $500. Even more, incorporating via Nlaw is cheaper than using Firstbase directly.
Speed and convenience. Using Firstbase + Nlaw is easy. You need to choose if you want an LLC or C-Corp and if you want it in Delaware or Wyoming. Most of our clients will opt for Delaware C-Corp. You need to propose the name of your company and sign some forms. And that's it. It is that simple.
Fast-track to a bank account. After incorporation, you can immediately open a bank account with Mercury. You do not need to wait for the EIN to be issued. This will save you time and energy.
Dual Corporate Structure for Europeans. We support you with your double corporate structure. Typically, European founders already have an entity in Europe before they incorporate in the USA. In those rare cases where a USA company is the first, they wish to incorporate one in Europe later. Setting up this dual structure can often be challenging and cause unwanted tax effects. We do our best to help you with an approach which reduces your tax leakage and risk. It is also essential how both companies interact and that your corporate structure is lean and easy to manage.
We cover your back. The incorporation process is automated, and you do it yourself online. However, Nlawyers remain available and can jump in if anything gets complicated. We help you with introductions to accountants.
Perks. You also receive an attractive package of perks and benefits from Firstbase.
Things to be careful about
Regardless of how you incorporate your US company, there are some risks that European founders should be aware of. Many of them are not immediately relevant for early-stage founders but become relevant later on and sometimes also present an issue for investors if discovered in due diligence.
Flipping tax problems. If you currently operate a European entity and wish to incorporate the US entity as its parent entity, contact us before incorporation. It is often challenging to transfer shares you currently hold in the European entity to the US entity. Such transfer can cause tax obligations by you as an individual.
Tax Residency. If the effective place of management and the substance of the business of your US entity is in one of the European countries, then such a European country could claim tax residency over your US entity. In other words, if you, as the management, sit, live, work and make business decisions in Europe, that could bring tax residency there. This could be troublesome not just from the perspective of tax rates but also from the administrative and accounting perspective. We recommend you get tax advice on how to deal with the tax residency challenge. We are also happy to provide it.
Costs. Operating a business in the USA is not cheap. European founders are often thrilled by the low costs of incorporation and soon after shocked by the prices of accounting and other essential services. Therefore, we recommend that founders who are not raising capital from investors plan their USA expansion carefully from the cost perspective. Hint: contact us for introductions to accountants.
Read more about how Nlaw helps you incorporate in the USA here.