Legal Question in International Law in Kentucky

My team and I are developing a new software, and are currently looking for investors for our start-up venture. We are US citizens, however, we want to relocate to New Zealand due to the growing IT sector that is emerging there. My question is should we go ahead and form a US company in order to have some kind of protection or should we wait until we get our 1st round of funding and form a NZ company since that is where we will end up. Of course some other concerns of ours is the tax implications for each scenerio? basically should we

1. form a US company, then move it to NZ? Is this possible?

2. should we just wait and start the company in NZ after we aquire the appropriate funding?

3. is there any other viable alternatives for a situation like this?

thanks!!


Asked on 3/18/11, 3:13 pm

1 Answer from Attorneys
Andrea Welker Welker Law Office

I can't advise you on New Zealand business law, but if you're going to conduct any business while you're in Kentucky, it would be best to go ahead and form your business accordingly under Kentucky law. Perhaps you develop software while you're here; you want to protect your intellectual property. Also, you would want to have contracts in place between you and your business partners, i.e. an operating agreement, so you agree what happens to profits/losses, who makes decisions, what happens if you dissolve, etc.

Whatever state or country in which you conduct business will have its own laws concerning businesses, and you need to register there accordingly and conduct business under that jurisdiction's laws. That also goes for local government too. You will want to consult an attorney in New Zealand, in the city where you live, so you can register your business (and pay all your associated filing fees and taxes).

Read more
Answered on 3/18/11, 3:54 pm


Related Questions & Answers

More International Law questions and answers in Kentucky