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Comment by ankitoberoi | Hacker News Reader

Wow - was just about to ask the same.

I'm based out of India and hate the Taxation system here (it's worse than what you read for the US) - software attracts Service Tax and VAT (Sales Tax) both - you pay reverse service tax for services you take from abroad and you even pay TDS (Withholding Tax) from your pocket for entities not incorporated in India. I could just go on and go on here.... it's just stupid.

I'm planning to incorporate my startup soon and want to do it in a country where I can: 1) Use a PG like Stripe. 2) No Service/Sales Tax just flat out corporate tax on profits. 3) Easy, Simple and Affordable Registration and maintenance process.

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> You pay reverse service tax for services you take from abroad and you even pay TDS (Withholding Tax) from your pocket for entities not incorporated in India

This is the most bizzare tax compliance issue I faced in India.

If you incorporate in US, you still have to pay taxes in India. This can make things easier in India, but it can create additional compliance and tax burden in US.

If you are looking forward to raise Venture Capital, then Delaware C-Corp is the preferred route. If you want to remain a self-funded company, then LLC can be a better option.

If you want to carry forward your revenue in India, then you can contract your Indian entity and transfer funds for services. Any funds you transfer to Indian company will be subject to Services tax or VAT and Income tax.

You can use services like LegalZoom to incorporate in US online.

Delaware corporations are not required for venture financing, as more than a few major venture people have said publically and on their blogs.

Just use your own state's corporation laws (if you're in the U.S.), until you're a many-multi-million dollar size entity, and avoid the headaches of being a foreign corporation within your own state (meaning out-of-state, but within the U.S.). You've got bigger fish to fry, if you're starting out.

ankitoberoi is from India. Since he is not a US resident, he may not have a state preference.

Yes, being able to use Stripe would be a great advantage.

There are a number of online services offering mostly a hassle free incorporation process, but none explains (or compares) the entrepreneur's side of the experience for an online business.

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