Legal Structure

Why Choosing the Right Legal Structure Matters

Choosing the right legal structure is crucial for any business, but for high-risk industries, it’s even more critical. Companies in these sectors must carefully select both their legal structure and jurisdiction to ensure smooth operations and proper fund repatriation. 

Industries such as adult, gaming, gambling, and crypto face heightened scrutiny from tax authorities, banks, and payment providers due to their business models. It’s essential to address the associated risks and mitigating factors early, ideally before launching operations or expanding into a new region.

When setting up a new legal structure for a high-risk business, consider the following carefully:

• Liability: Ensure appropriate protections and policies are drafted;
• Regulation: Assess which of your business activities are subject to regulation;
• Tax: Understand corporate income tax, VAT/sales tax on operations, and obligations regarding OSS and dividend taxation on fund repatriation;
• Ownership structure: Define how shareholders can participate safely and transparently;
• Directorship: Determine who will manage the company and clarify their responsibilities;
• Payments and banking: Ensure the structure is compatible with banking and payment institution requirements.

FirmEU has a dedicated team of legal and tax professionals specializing in high-risk industries. We provide expert advice on the optimal corporate structure, considering all relevant factors. Once the structure is determined, FirmEU ensures its seamless implementation, guaranteeing compliance from both a commercial and tax perspective.

Whether you're launching new operations, expanding your U.S. business into the EU, or looking to lower payment fees and/or improve approval rates through a revised legal structure, FirmEU has the expertise to guide you every step of the way!