B2B company in the US rarely sell to consumers either and their return policy is very different. Not necessary "no return", but only if damaged, not per spec etc. Since we don't have consumer protection laws here I guess it's based on different company structure and expected revenue. In your case it may also be VAT implications (similar problem here with sales tax).
That's why they are dying (those who tell you to take a hike). Why would I buy from a small business without a possibility to return if I can buy from Amazon with guaranteed 30 days? It's your choice. Honestly, I bought enough stuff from small to medium companies and most of them allow returns. If not, it's my choice not to buy. Not everything should be a law, and laws are not free, somebody has to pay (just like for 30 day return). Guess who pays? Well, it's ... you.
> Why would I buy from a small business without a possibility to return if I can buy from Amazon with guaranteed 30 days?
Perhaps because you don't want all retail to be Amazon?
> laws are not free, somebody has to pay
Isn't that a bit hyperbole? That law is written once, and delivers its effects afterwards. In contrast, millions of buyers have to investigate return policies every day without such a law. Is that really a better use of time?
It's not a hyperbole. Generous return terms means you are paying more for goods, everybody does. Where do you think goods returned to Amazon go to die? They are sold at discount, and Amazon is not dumb, they are not working at a loss, so you pay more for new goods. The less risk, the higher the price. If you have a law, that means no matter where you buy, you pay a premium as it's already included. I would prefer to have a choice.
And you don't have to buy on Amazon, most companies in the US accept returns in this way or another. Some ask you to pay a small premium for returns, it's up to you to pay it or not. Those who don't accept back damaged goods (no matter what policy is) usually got chargebacks which are commonly approved by the banks, and it's pretty expensive for sellers. So there are many ways to regulate returns, law is not the only one.
Don't buy if you don't like company policy, no need to have a law. There is plenty of choice in the US. Some companies even offer 90 days (again, no laws required).
I'd find it tiresome real quick to always have to research before purchasing anything if the vendor will treat me with respect. Having a baseline of what you can expect from any business relation guaranteed by law is pretty great, really.
Really? There are tons of ways to cheat and game any system, including consumer protection. No laws can close this completely. Darwin award is still a thing and will always be.
It depends on the means of production (Marx had the point). One thing is if you want to open a factory, then those regulations and limitations may protect the market, consumers and reduce fraud. If you want to start a software company and sell a smartphone app, that's a very different story. I assume Germany is still in 19th century in this regard, favoring big businesses who don't mind to wait 152 days or more and pay 10K. Modern economy, or at least a big part of it, is more about agility though, for good or for bad.
It's funny, so it's not even an authorized capital? That one can usually be spent. So these 25K is simply put in the bank as a guarantee? For what exactly? Like if somebody wants go give me a loan they will look at this number and limit a loan to 25K so they are "guaranteed"? It's a great idea, put money in the bank, take 25K loan and ... what would my net assets be? What am I missing?
So the only companies in Germany that are accepted are those that have positive net assets (equity), otherwise it doesn't work. Let's say I took a 100K loan, 25K won't solve any problem here. Can't take 100K loan with 25K net assets? That means what I said, you are never underwater, and it will put most startups in the US out of business.
If you register your company in WY but will be doing business in e.g. MA, you will have to pay registration fee in both jurisdictions. Doesn't sound like a saving to me.
If you mean why not register in your state, then Delaware has some tax benefits I believe. Not sure they will apply in MA though, maybe somewhere else?
Since my business is in MA it doesn't matter where my LLC is, I would have had to pay registration fee for "Foreign LLC" in MA to stay legal. That is in addition to fees I would have paid to DE. Not sure if MA is so unique, but I don't think it is.
Situations have changed in tech so I'll probably keep my LLC for a while but when things come up for renewal probably no reason to. Associated with another company and not beating bushes for big time-consuming contracts.
Haven't heard anything about LLC capitalization in this context. Liability shield can be pierced, but only if LLC is misused (i.e. "when the company is treated as a personal "alter ego" and used to commit fraud, injustice, or illegal acts"). Lack of capitalization is not one of the reasons as long as you treat it as a company, not your wallet.
No there’s lots of reasons it can’t be pierced. It doesn’t shield you from liability that results from your own negligence, and for owner operator businesses that’s a large attack surface.