Why Are We Building this Playbook?
The goal of this playbook is for venturing startups to learn more about potential structure and setup for their company.
Questions to Ask Yourself When Structuring a Start-Up
- Are you planning to take in revenue soon? If so, how soon?
- Where will you take in revenue?
- Do you plan on having investors? If so, are they Taiwanese or international?
- How many employees are you planning on hiring?
- How do you plan to fundraise?
- Do you provide a visa for yourself in Taiwan?
Why does it matter?
Jurisdiction is a crucial component for creating a company, as it determines the legal implications and the regulatory framework in which the company will operate, taxation, etc. Careful consideration of these factors ensure legal compliance, protects the interests of the company and its owners, as well optimizes business operations.
👇 Click below to see the differences between various countries
Common Business Structures
One or more persons can have ownership.
More than one person.
One or more than one person.
One or more than one, but limited to 100 people, and all need to be US citizens or residents.
One person who runs the company.
Corporate tax or personal tax and self-employment tax.
Personal tax and self-employment tax. Limited liability partners are excluded.
Corporate tax needs to be paid.
Personal tax applies to S-corporations.
Personal tax and self-employment tax.
Owners are not personally liable for the company's liability.
Partners have unlimited liability unless it is registered as a limited liability partnership.
In a C-corporation, owners are not personally liable.
Business owners are not personally liable for the company's liability.
Unlimited personal liability.
A representative office is a business structure that allows a company to establish a presence in a foreign country without engaging in commercial activities.
- Simple establishment
- No registered capital requirement
- Easy maintenance
- Limited business scope (must be within the parent; cannot import or export)
- Not a legal entity (all liabilities born by the parent company)
A subsidiary is a separate legal entity that is controlled by another company, known as the parent company.
- Tax advantages
- Loss management
- Easy to establish
- Synergize with other subsidiaries
- More legalities
- Complex financials
- Increased liability
The branch business structure involves establishing a branch office in a foreign country, which operates as an extension of the parent company.
- Parent organization maintains a greater level of control
- A branch office is governed by the laws of the parent company’s country
- Costs less to establish
- Offers the parent company greater tax benefits
- More difficult for the parent organization to explore new business opportunities
- The parent organization is liable for branch office debt or legal problems.
- Hiring for branch office.