How much does it cost to set up a subsidiary?

Setting up a subsidiary company in the USA as an international business is expensive.
At Foothold America, we know that an Austrian pharmaceutical company recently spent more than $50,000 forming a US entity. That’s not an unusually high figure, and in fact, European companies can expect to pay even more than this on average.

International businesses considering setting up a subsidiary in the USA can expect to pay upwards of at least $50,000. At Foothold America, we know that an Austrian pharmaceutical company recently spent more than this amount forming a US entity to do business in America. The reason it costs so much to form a subsidiary in the USA is due to:

  • legal fees and expert advise and assistance from lawyers
  • administrative fees for incorporating along the way – these fees vary from state to state.

Don’t forget that filing taxes will cost money too: an annual filing for a new company usually costs at least $5,000. Of course, if you don’t want to incur these large, upfront costs, you could establish a US presence using the services of Foothold America.

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