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Home › Society › Economy › Business, Accounting & Taxes › Starting a business abroad: General questions/advice?

Starting a business abroad: General questions/advice?

Started by Anthony Myers8 · · 👁 4 views · 10 replies

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Participants Anthony Myers8Anthony Davis72Harold Martin10vividranger8Amanda Hughes44Henry Rivera7Susan Jones4Jessica Murphy61coastalseal43Charles Stewart69
Anthony Myers8 Anthony Myers8 NewcomerOP
4 messages
joined Jul 2009
#1 ·
I'm just reading some news about entrepreneurs fleeing the US to set up shop in the United Kingdom, and it makes me wonder—is that actually only doable if you're running an online business?? Like, could I really run a physical shop in Washington, D.C. using a company registered in London? I know it sounds stupid, but I’m genuinely curious who can actually have an overseas entity while operating right here? I don't quite get it... someone please enlighten me.
Anthony Davis72 Anthony Davis72 Member
13 messages
joined Jul 2014
#2 ·
Anthony Myers8 said:I'm just reading some news about entrepreneurs fleeing the US to set up shop in the United Kingdom, and it makes me wonder—is that actually only doable if you're running an online business?? Like, could I really run a physical shop in Washington, D.C. using a company registered in London? I know it sounds stupid, but I’m genuinely curious who can actually have an overseas entity while operating right here? I don't quite get it... someone please enlighten me.

Well, it isn't as if everything happens exclusively through a web browser. My understanding is that for a business to be recognized in the UK, you generally need at least a director and one employee on the books, along with a registered mailing address for your correspondence.

As for running a shop in Washington, D.C., with a company based in London? Well, in the US, you still have to register a legal entity if you intend to conduct business on American soil. You can't just issue invoices here using the details of a foreign corporation.

It really comes down to the logistics—who is invoicing whom, which country they are invoicing, where the employees are officially on payroll, and where the actual production facilities are located.
Harold Martin10 Harold Martin10 Active Member
82 messages
joined Nov 2015
#3 ·
Anthony Myers8 said:I'm just reading some news about entrepreneurs fleeing the US to set up shop in the United Kingdom, and it makes me wonder—is that actually only doable if you're running an online business?? Like, could I really run a physical shop in Washington, D.C. using a company registered in London? I know it sounds stupid, but I’m genuinely curious who can actually have an overseas entity while operating right here? I don't quite get it... someone please enlighten me.

Hrvoje Prpić posted about this on his Meta profile. There is already quite a bit of info over there, and he even mentioned he'd be happy to lend a hand to anyone who needs it. It honestly feels like our local bureaucracy has just decided to make life difficult for everyone lately. 🙂
Anthony Davis72 Anthony Davis72 Member
13 messages
joined Jul 2014
#4 ·
Harold Martin10 said:Hrvoje Prpić posted about this on his Meta profile. There is already quite a bit of info over there, and he even mentioned he'd be happy to lend a hand to anyone who needs it. It honestly feels like our local bureaucracy has just decided to make life difficult for everyone lately. 🙂

Once the folks in the United Kingdom realize just how many Americans have set up businesses over there while ignoring the local rules, they're going to have to double their number of enforcers just to keep up. 😁
vividranger8 vividranger8 Active Member
96 messages
joined Aug 2011
#5 ·
So, here’s my little guide on how to start your own business in the United Kingdom
Amanda Hughes44 Amanda Hughes44 Newcomer
3 messages
joined Sep 2013
#6 ·

Anthony Davis72 said:Once the folks in the United Kingdom realize just how many Americans have set up businesses over there while ignoring the local rules, they're going to have to double their number of enforcers just to keep up. 😁

The thing is, following the law over there isn't actually that difficult. Everything is laid out pretty strictly, no loopholes or anything... but the rules are written in a way that doesn't step on anyone's personal freedoms.

Say you wake up one morning and decide right then and there that you're done with the 9-to-5. You're going solo. You already have a client lined up in your head, too. You head over, land the gig, knock the work out that very same day, and by evening, you've sent over an invoice under your own name. It’s all perfectly legal...

Regarding that first question... if you're looking at retail or moving physical inventory here in the States, it’s probably best for a foreign company to just go ahead and set up their own LLC...

If we're talking about B2B sales—you know, just one business dealing with another—it’s pretty straightforward. A company basically just needs to register with the Chamber of Commerce to say they're operating here in the US, and that's that. And if they're shipping goods from the United Kingdom into the States? They don't even have to worry about that part...
Henry Rivera7 Henry Rivera7 Newcomer
7 messages
joined Oct 2014
#7 ·
Great topic here🎉
Susan Jones4 Susan Jones4 Newcomer
2 messages
joined Sep 2015
#8 ·
I honestly can't wrap my head around what kind of actual advantages an e-commerce business gains by incorporating in the UK instead of right here at home.

If the employees are still physically working from their desks in America, shouldn't they be subject to all our local labor laws and regulations just like any other domestic company?

I’m particularly confused about how Prpica handled things; he went through the trouble of setting up his entity in the UK while remaining based entirely in America. If that's the case, wouldn't he automatically fall under the jurisdiction of our local inspectors anyway? I just don't quite see the logic behind it.
Jessica Murphy61 Jessica Murphy61 Member
28 messages
joined Mar 2016
#9 ·
Exactly, but you really have to wonder if it’s even possible to actually receive money from international sales here in the States.

Like, take my situation—I'm working on this one project and I'm thinking about launching it on Kickstarter to try and pull in maybe $1,000 just to see if people actually care about the idea.
But since Kickstarter doesn't operate directly here, they won't just send the funds to a local account. I guess you'd have to set up a business in the UK or maybe even in the US to get things moving.
coastalseal43 coastalseal43 Newcomer
1 message
joined Apr 2016
#10 ·
Anthony Myers8 said:I'm just reading some news about entrepreneurs fleeing the US to set up shop in the United Kingdom, and it makes me wonder—is that actually only doable if you're running an online business?? Like, could I really run a physical shop in Washington, D.C. using a company registered in London? I know it sounds stupid, but I’m genuinely curious who can actually have an overseas entity while operating right here? I don't quite get it... someone please enlighten me.

If you ask me, the government is totally to blame for allowing these kinds of loopholes to exist. Then again, they don't really give a damn about honest, hardworking young people (think Musk types), so they basically just let all that talent and potential pack up and leave the US. Honestly, this whole situation shouldn't come as any surprise.
Charles Stewart69 Charles Stewart69 Member
26 messages
joined Jun 2010
#11 ·
So, I figured I’d jump in on this super interesting thread,

Is it actually doable for me to take my small business—which currently runs out of a storefront here in the States—and basically flip it over to a Walmart-style offshore entity while keeping everything running smoothly on American soil? Like, if I did that, who would I even be paying sales tax to? And how would my crew handle things like workers' comp or social security, or even just basic local stuff like trash pickup and utility fees? Given how much lower the taxes are over in the USA, this could be a massive win for my bottom line, but honestly, it feels like a total nightmare to pull off for a settled little shop with six employees.🤔

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