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by singleauroa
1736 days ago
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Great advice. The reason I have no LLC yet is that in my country (I am not from the US) setting up a limited would require around 25.000€ upfront locked investment. Given my low MRR until now there was no need to do it by any means. Most small SaaS companies run as a sole prop for the time being. (Germany/Austria area) Coming up with the 25.000€ also seems unreasonably high and would instantly require me to do proper accounting for which I would need to hire a dedicated accountant which adds to the cost again... Hope you can see that for my 500$ MRR it's simply not economically feasible. That being said, I am seriously thinking about setting up my company in another country with a more appealing legal entity structure. Either the US or Estonia (EU E-Residency). Appreciate your advice here as well! |
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Concerning LLC be careful that there are double taxation treaties and that you first find an accountant who specialises in running a LLC from Ger/Aut. Otherwise you’ll pay twice in tax + high fees for the extra paperwork the accountant needs to do locally.
I personally had a look at having a UK Ltd run from Austria, there are plenty of companies specialising in that (just google UK Ltd Österreich/Deutschland). Not sure to what extent that’s still possible post Brexit.
All in all, especially if the big company is willing to pay upfront, I would personally go for a GmbH, might be more expensive to set up but saves you troubles in the long term I think.
Having said that, I’m only a programmer myself, please don’t rely on my advice here, definitely talk to a local accountant about that, they usually have a free consultation to get started.