Blog

Home » What is Involved in Setting Up a Subsidiary in the United States?

What is Involved in Setting Up a Subsidiary in the United States?

What’s involved in setting up a subsidiary?

Companies with operations abroad often want to set up subsidiaries in the United States. These companies may elect to do this for several reasons. Perhaps the company seeks a tax benefit for the parent company. Perhaps the company sees a new potential revenue stream.

Whatever the reason may be, setting up a subsidiary in the United States can have a slew of benefits. But how do you set one up?

Each situation is different, and the first thing that needs to be looked at is what country is the parent company located in. Each country has its own unique legal relationship with the United States. A company will need to look at the U.S. tax treaty with that country, which will then determine how they can set up their subsidiary.

The next step is to find an experienced tax attorney to navigate you through the process. A lot of moving parts need to be considered when setting up a subsidiary in the United States. An experienced U.S. tax attorney can ensure that everything is above board and in order. They can guide matters such as transfers between entities like loans and dividends. Your tax attorney can look to the treaty and figure out what can and cannot be done as you set up your U.S. subsidiary. The other aspect that needs to be considered is what state you plan to conduct business in. The laws of New York differ from the laws in California, and an experienced tax attorney can help guide you through the state law aspect of your subsidiary.

Setting up a subsidiary in the United States can get tricky for foreign companies. However, by understanding the treaty between the parent company’s home country and consulting with an experienced tax attorney based in the United States, the process will become much easier.

Contact Brinen & Associates

PRACTICE AREAS

RECENT POSTS

When Filing a Lawsuit What Court Should I Be In?

To file a lawsuit, you have two options. You can sue on the state level or you can sue in the federal court system. How do you know where your case belongs? And what are the advantages of each option? A person bringing a lawsuit only two ways to hear a case in federal...

read more

I Got a Summons and Complaint in the Mail? What Do I Do?

Receiving a summons and complaint in the mail may seem terrifying at first. For many people, their first instinct might be to just throw it in the trash and hope that their problem goes away. Hoping is not a plan, and is the last thing they should do. If you receive a...

read more

What is a 30(b)(6) Deposition?

Under the Federal Rule of Civil Procedure 30(b)(6), a party may depose – or ask questions of - public or private corporations, partnerships, associations, or other entities. To do this, the party needs to subpoena the public or private corporations, partnerships,...

read more

What To Do If You Haven’t Filed a Tax Return In Years

It may come as a surprise, but each year there are many, many Americans who simply do not file a tax return. Each person who does not file their tax return has many reasons this happens. For some, it could be because of physical or mental health issues that prevented...

read more

How to Handle a Subpoena From the SEC

Receiving a subpoena from the Securities and Exchange Commission (SEC) may seem daunting at first. If you do receive one, the first thing you should do is take a deep breath and not panic. You should assess your situation, and ultimately—and calmly—proceed with the...

read more