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One solution is for them to be contractors. You can go through an intermediary such as Odesk, which takes 10% off the top, but is the easiest way. For someone on the board, that is trickier. If they're not being paid in equity alone, making them the head of the overseas office would be pretty easy in most countries. It means you'd be responsible for ...

I'd want to get paid out of money that I could get my hands on. Whatever cash flow is coming through the US subsidiary should be fair game. Typically I see companies without much money paying salary and just having it deferred (so it accrues and the cash payout is when the company has the cash), and then having a bonus based on sales, etc., but in this ...

It is the law of land that always applies (and takes precedence in case of a treaty with another country). Period. If you want to be governed by UK laws only, your company should be limited to UK only. If you are doing business in Canada and have presence there, Canadian laws and only Canadian laws will apply there. If you register a UK company that wholly ...

Many large companies format their innovation pipeline to allow things like this, but if the company doesn't already do it, I wouldn't hold your breath. Would this product be in competition with your employers brand? Do you use proprietary technology that your employer owns? Was this product developed on company time? If the answer to any of those ...

I have to wonder why you want to make life so complicated? It is trivial to create a UK Ltd company, but surely a Canadian subsidiary would be governed by Canadian law. You'd have to check with a local lawyer, but I doubt UK law overrides Canadian law in the circumstances you describe.

could the employees of the subsidiary work on products of the parent company? Yes. Think of it; plenty of multinational companies have development centers all over the world. Are special contracts needed? Yes, and this is much too situation-specific and complex for Answers.OnStartups. In general, you would need some kind of framework around a) ...

so will there be any unitary tax consequence and issues with having the owner be the parent company? Yes, there might be. I suggest getting a proper legal and tax advice from a competent person in that area. If there's no particular reason to incorporate in CA, I suggest it would probably be better for you to incorporate in another state.

There's no such thing "US Sales Taxation". You're probably thinking of VAT that you have in Europe, and there's no VAT in the US. There are sales taxes imposed by various states, counties and cities, each has its own criteria, but they're imposed on sales (usually tangibles) which occur within that jurisdiction (or shipped to it), if the seller is under the ...

I don't believe there are any legal problems with doing that, but if you rent your home, or you have a flat that you own leasehold, you should check the letting agreement/lease -- some of these (my own included) specifically ban you from using the address as the registered office of a company.

If you're going to be the US face of a foreign company, you should think through what risk that puts you in. Meaning, if there's a taxation issue, who is the IRS going to call? You or the overseas parent. From your post, it's hard to give any substantive advice on salary vs. profit sharing, etc., but I definitely would factor in the risk of being a non-US ...

Setting up a limited company in the UK is very easy -- the fastest way is to find an "off the shelf" company that's already been registered, purchase it outright, then change the name. Any reasonable accountant will be able to do this quickly and relatively cheaply. You'll need a "registered office address" which is a physical location (no PO Box numbers) ...

I had a contact who set up a Limited company in the UK- I don't think that it was more difficult than setting up a basic corporation in the US. It just required a Memorandum and Articles of Association and some other paperwork. ETA: I don't understand your follow-on question- a subsidiary IS a completely new company, owned by your existing company.

The tax rate and amount of administration in each country are important considerations. Ireland has proved very popular in recent years for these reasons. That said, their government budget is direly in the red at the moment and the EU loans did try to pressure the Irish to raise those rates. We're based in the UK, the current rates aren't competitive. That ...

The real advantage of separating them out is if you have partners for each of the sites. That way, you can compartmentalize the loss if one of the partnerships goes south. The disadvantages are the paperwork and overhead, as you mentioned. If you are really worried about liability, then you should separate them out. The good news is that you can always do ...

The alternative would be to hire them as a contractor, which reduces the paperwork to a monthly invoice, but has a big caveat: German employment laws require that they have multiple customers. It is acceptable in some professions such as IT to have a single customer that generates most of your income, as long as you are not "dependent" on that customer ...

To have a foreign subsidary for seperating out different legal environments. So say you will have a sales force in Spain. You may want to make an offer to those employees that is different then your main business and so would want to create a subsidary. I suggest writing up a short internal business plan on how this would work. Why would these companies ...