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International Internet based start-up

Asked by: Liam - 22 December, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Hi, we have an internet-based concept that we want to start-up in the US. All of the shareholders are South Africans. In the US we'd need offices and employees. We will sell ad space to US-based clients mostly. We need 6 highly qualified employees and 18 medium and lower skilled employees. This business will start in the US and grow internationally over the next 5 years. We are currently very pressed for time. Please help me with the following:
Where should we be located?
What business type will be best for us? A Joint Venture with an existing in the US; Register in South Africa and Plant a branch in the US; New Company in the US; Something else?

To sum it up, we want to take the option that is going to meet the sufficient standards of our business, be cost-effective and will take the least possible amount of time to set up.

Kind Regards,
Liam
Answered by: Robert Kowalski - 23 December, 2011
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Liam,

Your description of this future business is quite broad, so I will try to give you a general answer that would cover all corners.

Although depending on what your activity in South Africa would be (development, customer service, etc), since all the shareholders are located in South Africa you will most probably be required to register your company there (although the details of company registration in South Africa are beyond my knowledge).

Then, since your customer base is in the US you might benefit from also registering a company in the US as well. This also greatly depends on the extent and nature of you business.

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