Legal Question in Business Law in Australia

Re: Business Incorporation - International

There are several considerations in selection of a domicile for a new corporation that will operate in multiple jurisdictions. These include convenience, secrecy, taxes, fairness and protectiveness of the corporate law and the legal system. Many of these factors are important to large and sophisticated enterprises but for new businesses starting on a shoestring, the list of truly important factors is much shorter.

My guess is that the best corporate domicile for you will be the one where most of the principals permanently reside, where the initial capital will be raised, and where the initial organizational activities will be conducted.

At some point the business will need to determine and follow the steps to become qualified to do business as a "foreign" corporation in those countries (and states) where it transacts significant business other than where it is incorporated. For example, if you incorporated in the Czech Rep. at some early stage you would have to register in California and start paying California franchise (and income?) taxes.

Re: Business Incorporation - International

Thanks for your question. You may want to initially incorporate in the area or country where most of the operations of the business, especially the financial transactions, are going to take place.

There are advantages and disadvantages to each type of business formation, in many areas, including in the areas of liability, taxation, ease of operation, insurance, complexity, etc.

Because of the high risk of the industry area you are operating in, I would probably recommend an incorporation. Where you would incorporate is another question that requires more facts. I also must strongly recommend that you get good insurance for your business.

As far as the most "cost effective way" to incorporate, you can do it yourself with a do-it yourself kit, or one of the internet incorporation services. However, I would recommend that you retain the services of an attorney -- not only to make sure it is done right, but also to advise you through the process and in the future, as the business grows or if the business suffers problems.

If you like, I have a branch office in Los Angeles, and I am happy to answer any questions you might have. Please feel free to call at 1-877-568-2977.

Re: Business Incorporation - International

You should initially incorporate where the main office is going to be. If it is CA you can incorporate for a few hundred dollars. Virtually any attorney can handle it.