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Can I avoid to incorporate in US if I get accepted in YC?

3 points by ccarnino ↗ HN
Hello! YC is getting more and more powerful in helping companies, so for my next venture I plan to apply. I don't plan although to stay in US long term.

So it doesn't really make sense to incorporate in US if then I will run the company from abroad its entire lifetime.

Is it possible to avoid incorporating in US if accepted in YC?

I usually incorporate as a UK's LTD, since I live in UK and it's a common choice for EU tech companies.

Thanks

7 comments

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ccarnino
I know that FAQs say I have to, but I was wondering if there was flexibility when it make sense otherwise.
ig1
You're worrying about the wrong thing, the overhead of incorporate in the US shouldn't have any influence on your decision whether you apply to YC or not (unless you're doing something where there's legal complications in the US such as gambling).
ccarnino
I understand that incorporating in US is very simple. I have done it in the past.

I just don't want to have and manage a company inside another country, while it would be much easier to have it in the place where I live.

brudgers
My take for what it's worth.

If the company is successful, the cost of paying else someone to manage the details of a Delaware corporation is almost certainly going to be much less than the opportunity cost incurred when a founder manages that level of detail regardless of where the company incorporates.

Or to put it another way, since using a UK LTD instead of a Delaware Corp. is unlikely to effect the odds of the company's success, there's not a clear business case for expending energy on it in the context of YC. That's not to discount personal values or world views only to recognize that those values and world views represent some misalignment between the founder's interests and YC's business model. YC, like any investor, invests on terms with which they are comfortable.

In the end, if the benefits of incorporating as an LTD outweigh those of YC's investment, then that's the way to go. If they don't, it isn't.

Good luck.

ccarnino
Your point is completely valid. Incorporating as UK company is not as helpful as being part of YC.

YC, rightfully, invest on terms that make them feel comfortable, since it's their money.

Nonetheless, this is something making me doubt if I will apply.

Thanks for your opinion. I appreciated it.

gull
> it doesn't really make sense to incorporate in US if then I will run the company from abroad its entire lifetime.

What made you think that?

> Is it possible to avoid incorporating in US if accepted in YC?

No, it's not possible. From http://www.ycombinator.com/apply/

"International founders, please note: if your company is a non-United States entity (corporation, limited liability company, etc.), your participation in YC is conditional on conversion of your foreign company into a United States corporation."

ccarnino
I have very low chances of getting a visa to live in usa, since I am a dropout without a college degree. Second, I am living in London, which I enjoy very much.

Thanks anyway to clarifying me that it's mandatory to be a US company. I understand why YC needs it.