How important is an EU company for EU customers

[indexomega]

I've a software that I'm escalating to a SaaS platform. My clients will be mostly companies located in the European Union, with some clients in the UK/US/Brasil.

My question is more about, how much do EU companies prefer to deal with EU-based companies? I understand there're some concerns with GDPR and, from what I heard from people, they prefer to deal with EU regulated online business.

I'm considering opening a company in Estonia, The Netherlands, UK or USA (LLC).
For tax purposes, UK and USA work better for me; but I'd like how much I could benefit by having it incorporated in the EU. Will I be able to attract more EU-based customers? Or incorporating in the UK would be good enough?

Thanks!

 

[Sols]

It depends on who your customers are and what industry you're in. Some care about‌ GDPR, some don't. Those who do might insist on signing a DPA (Data Processing Agreement)‍ in addition to the regular agreement, which effectively binds you to be GDPR compliant. But⁠ it's possible some will simply refuse working with a company isn't directly subject to GDPR.⁤

In terms of tax, the company is going to be taxed where you live and⁣ (if there is an applicable corporate tax) where the company is incorporated, unless you live⁢ in a tax haven.

 

[Marzio]

I buy from whichever gives me what i need independently of where it is located‌ but a US LLC is your best bet since all biggest SaaS companies are in‍ US.

 

[Sols]

That's because nearly all of them are in the⁠ US, and most of those are C Corps not LLCs. If you aren't in the⁤ US, running an LLC isn't necessarily the best choice.

Even so, many of the biggest⁣ US-based SaaS vendors have EU subsidiaries, GDPR-compliant DPAs, and/or offer data centers in the EU.⁢

 

[uplana]

It is not important but if you go for a EU company you want to‌ look into Cyprus and find some sort of good accounting firm to help you there!‍

 

[cangarooo]

My customers' feedback is always the same: they dont want to have nothing to do‌ with companies based in Fiscal Heavens or strange jurisdictions.
Yes, it's a broad definition but‍ if base your company in a country as UK or US, no customer will ever⁠ complain about that.
More difficult is to justify, as example, why you are resident in⁤ one country and decide to incorporate in another.
This is usually a second step in⁣ the discussion with your prospects.

 

[startfleetio]

As long as your SaaS software adheres to GDPR and your company does not come‌ from a tax haven country, it won't be a problem for your European clients.

 

[indexomega]

Thanks everyone for the insights!
Yes, I think I can add a USA LLC and‌ the UK to my pool of possible incorporation.