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

3 pointsby ccarninoover 9 years ago
Hello! YC is getting more and more powerful in helping companies, so for my next venture I plan to apply. I don&#x27;t plan although to stay in US long term.<p>So it doesn&#x27;t really make sense to incorporate in US if then I will run the company from abroad its entire lifetime.<p>Is it possible to avoid incorporating in US if accepted in YC?<p>I usually incorporate as a UK&#x27;s LTD, since I live in UK and it&#x27;s a common choice for EU tech companies.<p>Thanks

4 comments

brudgersover 9 years ago
My take for what it&#x27;s worth.<p>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.<p>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&#x27;s success, there&#x27;s not a clear <i>business</i> case for expending energy on it in the context of YC. That&#x27;s not to discount personal values or world views only to recognize that those values and world views represent some misalignment between the founder&#x27;s interests and YC&#x27;s business model. YC, like any investor, invests on terms with which they are comfortable.<p>In the end, if the benefits of incorporating as an LTD outweigh those of YC&#x27;s investment, then that&#x27;s the way to go. If they don&#x27;t, it isn&#x27;t.<p>Good luck.
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ig1over 9 years ago
You&#x27;re worrying about the wrong thing, the overhead of incorporate in the US shouldn&#x27;t have any influence on your decision whether you apply to YC or not (unless you&#x27;re doing something where there&#x27;s legal complications in the US such as gambling).
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gullover 9 years ago
&gt; it doesn&#x27;t really make sense to incorporate in US if then I will run the company from abroad its entire lifetime.<p>What made you think that?<p>&gt; Is it possible to avoid incorporating in US if accepted in YC?<p>No, it&#x27;s not possible. From <a href="http:&#x2F;&#x2F;www.ycombinator.com&#x2F;apply&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.ycombinator.com&#x2F;apply&#x2F;</a><p>&quot;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.&quot;
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ccarninoover 9 years ago
I know that FAQs say I have to, but I was wondering if there was flexibility when it make sense otherwise.