Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
The Digital Nomad Dilemma
As a digital nomad, you face a unique challenge: you move around, but clients, banks, and governments want to know where your business "lives."
Common Problems
- ⚠ No permanent address for banking
- ⚠ Unclear tax residency
- ⚠ Payment processors want "real" business
- ⚠ Clients want professional invoices
- ⚠ Home country structure doesn't fit lifestyle
What You Need
- ✓ Business bank account
- ✓ Payment processing (Stripe)
- ✓ Professional invoicing
- ✓ Clear legal structure
- ✓ Location-independent management
Decision Framework
Question 1: Where are your clients?
Mostly EU/Global
→ Estonian company makes sense. EU presence, global reach.
Mostly US
→ Consider US LLC or use Estonian company (Stripe works globally).
Question 2: What's your annual revenue?
Under €20k
→ Xolo Go (invoice through existing company, no entity needed)
€20k-100k
→ Xolo Leap (own Estonian company, full control)
Over €100k
→ Own company essential. Consider tax optimization.
Question 3: Do you need Stripe/payment processing?
Yes (SaaS, products, subscriptions)
→ Need real company. Estonian OÜ = Stripe-ready immediately.
No (consulting, fixed contracts)
→ Bank transfers work. Xolo Go may be enough.
Question 4: What's your tax residence status?
Clear tax residence somewhere
→ Estonian company + declare dividends in your residence country.
Perpetual traveler / unclear
→ Estonian company gives stable base. Consult tax advisor on personal situation.
Entity Comparison
| Factor | Estonian OÜ | US LLC | UK Ltd |
|---|---|---|---|
| Remote management | ✓ 100% | ✓ 100% | ⚠ Mostly |
| Stripe access | ✓ Full | ✓ Full | ✓ Full |
| EU banking | ✓ Easy | ✗ Hard | ⚠ Possible |
| US banking | ⚠ Via Mercury | ✓ Easy | ⚠ Via Mercury |
| Corporate tax | 0% retained* | Pass-through | 19-25% |
| Annual maintenance | €1,200-2,400 | $500-1,500 | £1,000-2,000 |
| Best for | EU clients, Stripe, low maintenance | US clients, US investors | UK clients, UK ties |
* Estonian 0% applies to retained earnings. Distributions taxed at 20-25%.
Recommendations by Scenario
Freelance Developer/Designer
€30-100k revenue, clients worldwide, need simple invoicing
→ Estonian OÜ via Xolo Leap. Professional structure, easy accounting, Stripe-ready.
SaaS Founder
Building product, need payment processing, may raise funding later
→ Estonian OÜ to start. Can add US holding later if US VCs require it.
Content Creator/Coach
Selling courses, coaching, digital products to global audience
→ Estonian OÜ or Xolo Go if just starting. Handle VAT properly with OSS.
US-Focused Business
Mostly US clients, potential US investors, US market focus
→ US LLC (Wyoming or Delaware). But you can still use Estonian company for EU operations.
Quick Decision Tree
Start here ↓
Do you need Stripe or similar payment processing?
↓ (if Yes)
Are your main clients in the US with potential US investors?
↓ (if Estonian)
Xolo Leap: Estonian OÜ
Company formation + accounting + compliance = sorted
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
