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I am living in south Asian country and having a new web start up which most of my main customers are from USA and UK. At the moment my website received a lot of positive feedback. I haven't form any legal company yet and thinking to form a offshore LLC at Delaware, USA.

If i am working from my country and forming this Offshore LLC at Delaware, do you guys think it will work? Will investor feel confidence to invest on my project? How about the legal section? will it be difficult to handle?

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closed as not constructive by Jesper Mortensen, xiaohouzi79, TimJ, dnbrv, Zuly Gonzalez Jun 28 '12 at 16:23

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2 Answers

If by investors you mean venture capitalists, the best corporate vehicle is definitely a C corporation rather than a LLC. You lose the benefit of skipping corporate taxes, but most venture funds cannot invest in so-called UBIT entities like LLCs. So, if you are fairly sure you'll be looking for VC money in the short term, it makes sense to set up a C corp from the beginning rather than changing corporate structure later (it triggers tax liabilities and adds costs). I'd definitely consult a tax attorney before embarking the process.

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Investors invest in people and ideas. They need to see numbers and a plan. Where the company needs to be formed is something the investor will probably tell you.

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