Bloomberg BNA Quotes Peter Barnes on Companies Incorporating Outside the U.S.
Bloomberg BNA spoke with Peter A. Barnes about the IRS and Treasury Department not asking before why companies don't incorporate outside the U.S. to begin with as part of the conversation in developing a strategy to keep U.S. companies from leaving our shores. For the complete article, please visit Bloomberg BNA's website (subscription required).
Excerpt taken from the article.
Despite the potential advantages, this strategy faces stiff resistance due to a number of practical reasons—and it is unclear whether it has grown into a significant trend among startups.
Peter Barnes, a senior lecturing fellow at Duke University School of Law and of counsel at Caplin & Drysdale, dismissed the buzz as “parlor talk.”
“There is a lot of chatter by tax professionals that this is a strategy that entrepreneurs should be taking, but very little real world evidence that it is actually occurring,” Barnes wrote to Bloomberg BNA. “Of course it makes sense for a person setting up a new company to adopt this structure. But it is very daunting for a non-lawyer to consider establishing a foreign company as the parent of a US company, incurring both initial costs and future operating expenses, when it is not clear the entrepreneur even has a profitable idea.”
- Of Counsel