I, a US Citizen, have the opportunity to become a Co-Founder / Shareholder in a small non-US Company (currently incorporated in the EU).
What I have seen so far suggests that there are a lot of complications, and onerous reporting for Americans who are shareholders in foreign corporations (e.g. Form 5471). At the same time, it would not be an issue for my foreign partners to be shareholders in an American corporation (and there would also be some business advantages to being US-based).
I know that many companies (especially startups) in the EU perform a Delaware flip to create a US holding company for the EU operating company. However, this is fairly complicated and costly.
It seems to me, that the easiest solution would be to simply incorporate a company in the US with my foreign partners and then start moving the business (essentially clients, as the business is basically software / tech services) from the EU company to the US company.
Am I missing something? Is there a better solution?
Edit: Re-incorporating in the US does not seem to be an issue based on conversations I've had with lawyers / CPAs and will be what I do in this case.