5 Comments
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Kevin's avatar

This whole thing seems like it’s solving the wrong dimension of the problem. Why can’t startups just incorporate in Delaware and operate the actual company in Europe? That’s how Silicon Valley works. Nobody actually incorporates in California, the laws here are apparently bad for that. You don’t need to have any actual presence in Delaware.

Martin Sustrik's avatar

You still need a local subsidiary to do anything in the country, like hire employees or whatnot.

Kevin's avatar

That seems like the problem then. You could simply let Delaware C corps hire Europeans in Europe without having a local subsidiary. After all, I can hire Europeans to work remotely from the US without having a European subsidiary.

Ben Fox's avatar

Legally you can't based on local laws unless they are contractors and each country has laws on what that means. It is very messy and lots of gray area and nuance...

Eleanor Mayrhofer's avatar

Thanks for including suggestions in your critique! Even for us small fish not trying to operate or scale across Europe it can be tricky. I heard this time and time again from small business owners and founders on my podcast: https://thegermanylist.de/the-germany-expat-business-show-podcast/