{"id":12428,"date":"2016-07-29T17:01:36","date_gmt":"2016-07-29T17:01:36","guid":{"rendered":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/e-commerce\/tech_helps_e-estonia_replace_delaware_as_corporate_capital.html"},"modified":"2022-10-14T18:31:17","modified_gmt":"2022-10-14T22:31:17","slug":"tech-helps-e-estonia-replace-delaware-as-corporate-capital","status":"publish","type":"post","link":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/financial\/tech-helps-e-estonia-replace-delaware-as-corporate-capital.html","title":{"rendered":"Tech helps e-Estonia Replace Delaware as Corporate Capital"},"content":{"rendered":"<p><a href=\"http:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/uploads\/e-Estonia.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/assets_c\/2016\/07\/e-Estonia-thumb-500x128-15292.png\" alt=\"e-Estonia.png\" width=\"500\" height=\"128\" \/><\/a><\/p>\n<p>Set your business up in Delaware is what you&rsquo;ll hear from an attorney if you decide to set up a US corporation. Why? Look at all these <a href=\"http:\/\/www.bizfilings.com\/learn\/incorporate-delaware-nevada.aspx\">benefits<\/a>:<\/p>\n<ul>\n<li>Delaware&rsquo;s business law is one of the most flexible in the country.<\/li>\n<li>The Delaware Court of Chancery focuses solely on business law and uses judges instead of juries.<\/li>\n<li>For corporations, there is no state corporate income tax for companies that are formed in Delaware but do not transact business there (but there is a franchise tax).<\/li>\n<li>Taxation requirements are often favorable to companies with complex capitalization structures and\/or a large number of authorized shares of stock.<\/li>\n<li>There is no personal income tax for non-residents.<\/li>\n<li>Shareholders, directors and officers of a corporation or members or managers of an LLC don&rsquo;t need to be Delaware residents.<\/li>\n<li>Stock shares owned by persons outside Delaware are not subject to Delaware taxes<\/li>\n<\/ul>\n<p>Is it such a surprise that if you have low taxes and simple regulations you&rsquo;ll grow your business base? Apparently, as most states aren&rsquo;t very competitive with these offerings.<\/p>\n<p>Delaware though has competition from the EU where regulations and taxes are typically so high that some businesses are fleeing or closing up shop.<\/p>\n<p>Estonia is one of the more tech-savvy EU countries and they did something very smart a few years back. As my colleague <a href=\"http:\/\/www.techzone360.com\/columnist.aspx?id=100047&#038;nm=Erik%20Linask\">Erik Linask<\/a> wrote in 2014 that e-Estonia allows you the a global citizen but <a href=\"http:\/\/www.techzone360.com\/topics\/techzone\/articles\/2014\/10\/24\/392157-e-estonia-cloud-computing-virtualization-open-doors-digital.htm\">do business<\/a> in Estonia and the EU.<\/p>\n<p>He went on to say:<\/p>\n<blockquote>\n<p>E-residency will not offer voting rights &ndash; at least not yet &ndash; though there has been discussion of it as potential future option. The idea is that, as more people and businesses become tax-paying e-citizens, they perhaps should have some say in regulation defining taxation and digital infrastructure. Indeed, this is more the slightly tricky, as there is reason to question whether e-residents are likely to take into consideration physical residents&rsquo; needs and issues when it comes to policymaking.<\/p>\n<\/blockquote>\n<p>When the Brexit happened, many people said the world would end. Forget the fact these people claimed this list would end the world as well:<\/p>\n<ul>\n<li>Y2K<\/li>\n<li>Anthrax<\/li>\n<li>West Nile<\/li>\n<li>Bird Flu<\/li>\n<\/ul>\n<p>I <a href=\"http:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/ip-communications\/bitcoin-blockchain-and-fintech-to-the-brexit-rescue.html\">dissented<\/a>, thinking tech would help save the day and keep people connected just as if the UK was still in the EU. Fintech was one of the areas of growth I saw being fueled by Brexit.<\/p>\n<p>I didn&rsquo;t consider e-Estonia but now the little country is starting to shine. MIT Technology Review just wrote a great piece on how well it&rsquo;s doing. Here is an excerpt:<\/p>\n<blockquote>\n<p>Cost was also a factor for Vojkan Tasic, chairman of a high-end car service company called Limos4, in his decision to pick Estonia as a new home for the company. Started in his home country of Serbia six years ago, Limos4 has been paying credit-card processing fees of 7 percent. Limos4 operates in 20 large European cities as well as Dubai and Istanbul, and counts Saudi Arabian and Swedish royalty and U.S. and European celebrities among its clients.<\/p>\n<p>After considering Delaware and Ireland, Tasic chose Estonia, where he can settle his credit-card transactions through PayPal subsidiary Braintree for 2.9 percent and where there is no tax on corporate profits so long as they remain invested in the business. Since getting his e-residency and moving the company to Estonia, profits are up 20 percent, Tasic says. Annual revenue is around $2 million.<\/p>\n<\/blockquote>\n<p>It&rsquo;s interesting that virtually everyone who believes in typical liberal policies such as gun control and higher minimum wage are against Brexit. Conservatives are typically pro-Brexit. In other words there seems to be an even split on globalization versus nationalism.<\/p>\n<p>That&rsquo;s the beauty of E-Estonia, it seems to be the perfect solution for both groups. You can become a connected citizen if you like, or not. It&rsquo;s your choice.&nbsp;<span data-mce-mark=\"1\">The government hopes to have 10 million e-residents by 2025. The number seems ambitious but since it really bridges a political divide, they may just get there.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Set your business up in Delaware is what you&rsquo;ll hear from an attorney if you decide to set up a US corporation. Why? Look at all these benefits: Delaware&rsquo;s business law is one of the most flexible in the country. The Delaware Court of Chancery focuses solely on business law and uses judges instead of<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[162,1682],"tags":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/12428"}],"collection":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/comments?post=12428"}],"version-history":[{"count":1,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/12428\/revisions"}],"predecessor-version":[{"id":18483,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/12428\/revisions\/18483"}],"wp:attachment":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media?parent=12428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/categories?post=12428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/tags?post=12428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}