Hi Geoff, This process is sometimes referred to as flipping-up your company to the US so that the US company becomes the parent (I know that you know this as we have talked about it). It is tricky to get right from a tax perspective so as not to create a CGT event in the process.
I have not flipped my company to the US. We have an AU parent which wholly owns a Delaware Inc subsidiary. Not the ideal structure for a US based startup... if I have to navigate a sale process or another capital raising, the American acquiror/investor is going to consider the Australian parent to be an unclean transaction. Not impossible to close a deal, but not ideal either. But a flipup has not been a process I have the cash or stomach for. I have heard of other startups that have spent up to half million dollars in legal fees to complete their flipup (platinum lawyers too I think). I know that Joe Ward who is also on this mailing list navigated a flip process with some definite challenges along the way but did it on a budget. It's definitely a whole separate email thread. Patrick. On 12 October 2011 16:43, Jeromy Evans <[email protected]> wrote: > > On Oct 12, 4:13 am, Geoff McQueen <[email protected]> > wrote: > > Another dimension to Patrick's comment: if you're planning on moving to > the > > US to raise venture money for your business, also be aware that... > > Geoff/Patrick/Others, when you took your businesses to the US did you > shutdown the Australian entity, take on international shareholders in > the Aus entity or setup in the US and maintain both entities? Is that > transition process described anywhere? > (sorry, this may deserve a new thread but the context in the previous > posts is important; setting up complex structures for Aus when it's > likely only a temporary investment vehicle anyway) > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. Vist http://siliconbeachaustralia.org for more > > Forum rules > 1) No lurkers! It is expected that you introduce yourself. > 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs > > > To post to this group, send email to > [email protected] > To unsubscribe from this group, send email to > [email protected] > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
