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Old 08-05-2009, 09:42 AM
SoftwareGuy
 
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Tax implications for purchasing a corporation based in Finland

A few investors and I would like to purchase a company software company in Finland. There is no requirement for a physical presence in Finland since there are no employees or other physical assets. The company consists of Intellectual Property, digital media, source code and customer information. The company would have a steady revenue stream with no additional work, but we plan to invest additional development and marketing resources to increase this and keep it from dwindling. All the investors have full time jobs elsewhere though, so this is a secondary pursuit -- possibly passive for some of the investors.

Initially I thought it would be best to form an LLC locally and then purchase all the assets of the company from Finland. For tax reasons in Finland, the owners of the company we want to purchase have asked us to purchase the company outright instead. I read a little on CDCs and PFICs and I'm still somewhat confused. Can I just transfer the company to the U.S. and treat it as a U.S. company somehow? Is it better not to?



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