incorporation, paperworkI am setting up a startup physically located in China, no shareholders are American.
I need to have my IP in a Delaware-C-Corp, that’s a constraint from the investors.
That being said, I don’t know the US tax system very well and I am quite afraid of forgetting something here and there, then having to pay penalties.
Someone told me to register an independant Chinese company, do everything there and just give the US company an option to purchase the Chinese company for 1$.
Money transfers from the US company to the Chinese one would be done via invoices.
Is that legal ?
If not, is there another way to have a low paperwork structure ?
Again, I am not trying to avoid taxes ! I am trying to avoid paperwork, hassles and penalties.
What you need to do is engage a Registered Agent. This is a company that will do the paperwork in Delaware, and serve as an agent if anyone needs to serve you with legal paperwork, etc.
I don’t necessarily recommend this registered agent, but they have a quick rundown of what you need to do: https://www.delawareregisteredagent.com/how-to/non-us-delaware-llc-corporation
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