Startup Ltd.: Tax Planning and Initial Incorporation Location
42 Pages Posted: 7 Jun 2013 Last revised: 12 Oct 2013
Date Written: October 10, 2013
This Article analyzes the incorporation decisions of relatively new, U.S.-based private business enterprises with global ambitions. Such startup firms generally organize as U.S. corporations. This Article theorizes this dominant structure and its exceptions, drawing from prior literature and illustrating with informal interview results. It identifies explanatory factors including limited tax benefits of non-U.S. incorporation, legal benefits of U.S. incorporation, startups’ liquidity and other resource constraints, and investor preferences.
Keywords: incorporation location, startup, tax haven
JEL Classification: H25, K33, K34
Suggested Citation: Suggested Citation