Which states should I set up my subsidiary in?
Deciding which state to set up your subsidiary in is an important consideration. Many international companies incorporate in Delaware before registering in other states so that they can do business across the US. Corporate tax is relatively low in Delaware, and there’s a great deal of professional and legal expertise available for international businesses here too.
In the US, companies are organised at a state level, rather than at the federal level. This means that you’ll need to decide which state you want to set up your subsidiary in.
You can incorporate your subsidiary into any of the USA’s 50 states, but many international businesses choose to set up in Delaware. This is because Delaware is known for having a relatively low rate of corporate tax, as well as easily navigable tax laws and corporate structure rules.
However, consider all 50 states when you’re making up your mind, factoring in the resources your business needs, infrastructure, transport, insurance and other important considerations. Your lawyer may be able to help you, but bear in mind that your US lawyer is likely to be an expert only in the laws relating to the state they operate in – not all of America.
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