[cascom]

(Not a lawyer etc.)

If you didn’t have a US founder I think you’d have more options, but since you do, just embrace the US - it’s will also be the easiest from a fundraising standpoint, and one of the cheaper options.

I actually think the US gives you the most choices from a vendor standpoint, and is the cheapest (or one of the cheapest from an administrative standpoint).

Regardless, definitely do it in a jurisdiction where one of the key founders actually resides (ideally the CEO and/or CFO) as that just makes the administration much easier to have someone on the ground.

[SkyAndSand]

That is good advice. What would you do in case there wasn’t a US founder?

[cascom]

Short version - do it where or near where the bulk of your 1) customers 2) investors 3) leadership team are likely to be located, that also is not an administrative hassle. Stay out of continental Europe and tax havens that you’re never going to step foot in.

From a practical standpoint all small companies are out of compliance with tons of laws, they just fly below the radar, and do their best (not from a desire to be non-compliant, but that the laws are impossible to comply with without armies of accountants and attorneys) So do the best you can and move on with your life. You’re going to have the same employment problems with your German employee regardless of whether his employer is in the Isle of Man or Australia, so just suck it up and hire a an accounting firm to do the personal tax returns for the team and focus on your business.