Michele Hansen  0:01 
Can I ask you an honest question?

Colleen Schnettler  0:03 
Of course, I love honest questions.

Michele Hansen  0:05 
Did you actually get any work done this week?

Colleen Schnettler  0:09 
Oh, my goodness. So it has been very challenging. For me to focus this week, I've really struggled with it. How about you?

Michele Hansen  0:19 
Between, you know, all of the checking Twitter and phone banking and everything else that has consumed this week. I have gotten some things done, though. Weirdly enough, things that require deep thinking and are complicated and less so tasks, which is really surprising because for me, as an ADD person, I tend to find that it's easier for me to churn out tasks when I'm having trouble focusing rather than thinking through something complicated, but instead, my brain is doing the opposite. And everything is just crazy this week.

Colleen Schnettler  1:01 
Yeah, I have found that I did better this week, like a deep work as well. I mean, I ended up working almost every night this week. And it was partially because I felt like it, but I think a lot of that too, was just like to give me something to focus on, so I didn't have to worry about everything else going on.

Michele Hansen  1:21 
I admit I've been spending more time on hobbies this week too. On Tuesday afternoon, I ended up spending a couple of hours sewing masks with my daughter because I just I couldn't be anywhere near a computer. Like I knew that if I was at my computer, ostensively replying to emails and everything else I would be looking at the news constantly.

But so that thinking I did do, is was working through this big, complicated thing that we're dealing with right now that some listeners have asked us about, which is this whole moving to Denmark thing.

Colleen Schnettler  1:56 
That's big. Yeah, it's a big deal.

Michele Hansen  1:58 
Yes. And a big deal of that is how it relates to the business, both how it relates to our US business, and then setting up a business here. So one of the big things to figure out is like, obviously, our business address needs to change, right. So before it was our house, it can't be our house anymore. So one of the tools we're going to use, which seems like a lot of people who are running remote companies who are US citizens, but outside the country, or even non US citizens running from outside the country, a tool called Earth Class Mail, which I hadn't heard of until six months ago and has been so awesome. And you basically just get a mailbox, you can send things to. Some of them are PO boxes, some of them look more like a real address, you know, like a suite number instead. But the big thing we're trying to figure out, which relates to the mail, too, is our incorporation in the US and whether we have to change that.

Colleen Schnettler  3:00 
Yeah, this seems like a really complicated topic. So your mail, your Earth Mail, is that a PO box in Denmark that you physically access? Or is it just like a fake address to use on business documents?

Michele Hansen  3:12 
So it's a virtual address that we use to receive mail both personally and business in the US. So we're having...

Colleen Schnettler  3:20 
But where does the actual mail go? Where does the physical mail do it?

Michele Hansen  3:24 
So it goes to a PO box in DC, and then it actually gets shipped to Earth Class Mail's facility in Beaverton, Oregon, and then they scan it. So we basically get all of our mail as email. So whenever someone sends us a letter, or even like, we can even deposit checks like that, like it'll scan the contents of an envelope and tell us when there's a check in it. And then we can deposit it. And it you know, I mean, it takes like a week or two, but it's like, other than that, what would we do? So currently, that's going to DC, but our business is registered in Virginia. And so what I've been trying to figure out is do we need to stay incorporated in Virginia? Or do we need to go through the process of dissolving our Virginia Corporation and then reincorporating in another state that is more friendly for remote businesses?

Colleen Schnettler  4:19 
Okay, first question, do you have to be incorporated in the United States at all?

Michele Hansen  4:24 
Yeah, I think for a lot of the services we use, like in our insurance and everything else, like it makes sense to probably -- what we're going to do is have a US company, and then just have a Danish subsidiary, but basically only for payroll purposes. That is at least according to our Danish accountants, though, our conversations with them have been somewhat delayed because our accountant and her entire family got COVID.

Colleen Schnettler  4:45 
Oh!

Michele Hansen  4:46 
She's doing better now. Thank God. Yeah, it's been. Yeah. Yeah. We didn't hear from her for a couple of weeks. And we're like, why? And then, oh, my gosh, and we felt like absolutely terrible for wondering why she hadn't followed up with us.

Colleen Schnettler  5:00 
So my first question not knowing a lot about taxes or business and corporations, why wouldn't you incorporate in a state like Florida that doesn't have state taxes? So that's income tax, isn't it?

Michele Hansen  5:10 
Yeah. So that's, that's personal income tax. I mean, so so this, this decision matters. What you decide to do is different based on your situation, because we're in Denmark, and we're going to be end up paying so much in taxes here that we're not going to have any US tax liability, it doesn't really matter a lot, we still have to file taxes, but you know, that the tax rate here is, you know, starts at 42%, basically. So, um, so actually was the way I looked into this, right. So, so in Virginia...Virginia has two really annoying taxes for businesses. So the first one is the business tangible property tax, where they will tax every piece of equipment that you use for the business. For us, that meant desk chairs, and desks and computers and everything else, and you have to pay sales tax on those every year. However, we won't have any physical presence in Virginia. So that won't be a problem. The other one we've been trying to figure out is, do we have to pay the what is called the B Paul tax or the business professional, an occupational licensing tax, which was instituted to pay for the war of 1812. And is still here?

Colleen Schnettler
Wow.

Michele Hansen
Yes, yeah. It's actually it's really funny. Like, looking into the into all of the rules for that tax. It lists out all the possible Aki occupations. And town crier is listed as one of the possible occupations. Wow, he just says a lot. And the most grating thing about that tax is that it's a gross receipts tax, which means it's based on total revenue, so you don't get to deduct your expenses from it. Now, of course, the tax rate is very low as because it's such a broad tax. But this is also why economists hate this tax. Because it's so broad and was supposed to be for a war 200 years ago, and it's just stuck around magically. Trying to figure out if we would still be liable for this, if we're incorporated in Virginia. Seems like maybe not. But just in case, I've been kind of running down some rabbit holes of, to your question, should we change our state of incorporation, which is a process.

And so I consulted a couple of different places for this. And one that I found kind of helpful, is the service called