[caeril]

The primary reason is the rule of law.

You keep mentioning Brazil in your comments, but as a founder I'd rather not have to keep track of the various government officials I have to bribe in order to be compliant, and even then, not be completely sure.

I hate lawyers and I hate governmental red tape, but at least in the US it's consistent, and the rules are laid out for you ahead of time. Finding out three months after launch that you have to buy Chico's cousin a hooker in order to get your business license renewed is suboptimal.

[ramikalai]

You're right, the US government has zero corruption. haha jokes aside, that's a fair point.

But if you're selling there, you can still manage to avoid a lot of the red tape, bureaucracy, etc. You can be a c-corp and sell there. I'm sure a lot of the US companies that sell there don't have to engage in all that, so why not focus on that market?