[codehotter]

Many countries, and I think most countries in Europe, have language related to "place of effective management" in their tax code. Even a corporation incorporated in Cyprus (say), it could be considered resident in Germany (say), if the tax authorities feel the place of effective management is in Germany.

Interestingly, this link says that in the US: "Generally a corporation is treated as a domestic corporation if it is created or organized under the laws of the United States, any State, or the District of Columbia. No other criteria related to place of management will cause a corporation to be domestic."

https://www.oecd.org/tax/automatic-exchange/crs-implementati...

If you do decide to incorporate somewhere else, and you manage the company from the US, make sure it's a place where the tax code also doesn't care about the place of effective management.

However, if the income is US-source, aren't you always taxed on that income in the US anyway? "A foreign corporation engaged in a US trade or business is taxed at regular US corporate tax rates, but only on income from US sources that is effectively connected with that business, and at 30% on US-source income not effectively connected with that business. By contrast, US-resident corporations are taxed based on their worldwide income."

https://www.pwc.com/us/en/tax-services/publications/assets/d...

[golergka]

What if the team is made of digital nomads working remotely from different areas?

[codehotter]

Good question. I'm not a lawyer; I assume edge cases will be decided by the relevant tax authorities. Speculating here, but if there's a single place where management decisions are made, say where the CEO lives, the corporation might be tax resident there. Otherwise, they might decide to tax you in place of incorporation.

For such a company, what address would it have? Maybe where you place its headquarters has some significance too.

[cperciva]

IANAL, but my understanding is that common law jurisdictions generally consider a corporation to be resident wherever "management and control" is exercised; corporations which are at risk of being considered resident in a jurisdiction where they do not want to be considered resident normally ample evidence of the locations of their board meetings and the physical presence of board members in order to prove that control is not being exercised within the avoided jurisdiction.