Establishing a US presence
Get answers to your questions and take the first step toward US business expansion.
What is a US subsidiary, and do I need one to operate my business in the USA?
If you plan to operate your business in the USA and be the Employer of Record (also known as the Direct employer) for your US employees, you will need to form a subsidiary company. A subsidiary is a distinct legal entity that is more than 50% controlled by a parent company. Because a subsidiary is a separate legal entity, the liabilities, taxation, and regulations are also treated distinctly, limiting exposure to your parent company. There are a number of different types of subsidiaries you can establish in the US, such as LLC (Limited Liability Company), C Corporations, Non-profit (also known as 501(c)(3)) or LLP (Limited Liability Partnerships).
Whether a business needs to establish a US subsidiary to operate in the US will depend on their business objectives, legal considerations, and the type of business activity. The primary benefit of forming a subsidiary is creating a legal separation between the parent company and the subsidiary, which can offer liability protections and tax benefits.2 If a foreign company decides to operate in the US without a subsidiary, they can choose to work as a branch office or a representative office. However, unlike a subsidiary, these do not offer the legal protection created by a separate legal entity.
Ultimately, the decision on whether to establish a US subsidiary or not should be made on a case-by-case basis, taking into account legal, financial, and business considerations.4 If you are considering establishing a US subsidiary, it is important to seek professional advice and assistance to ensure that the process is carried out correctly and with compliance with US regulations and laws.
Find out more about our Entity Setup Service and how we can help you establish your US subsidiary.
How to establish your business presence in the USA?
The US continues to be fertile for business innovation and growth, inviting businesses from around the world to make their mark in the 50 states. But how do you get started? Explore the Q&A’s below to find out more about what it takes to establish your business presence in the USA, how to set up a US entity, how long it takes & more. If you have any other questions for us about entering, growing or scaling in the USA, please feel free to get in contact with us here.
Only the best for you and your team
At Foothold America, we offer top-notch service for you and your team. Our core services include:
Our Employee Management Service offers a turn-key, cost-effective solution for your company to have a legitimate US presence with US employees anywhere in the country in as little as one week without the cost and complexity of setting up a US entity.
People Partnership Service (PPS)
We’ve created our People Partnership Service (PPS) to help you navigate the process of setting up your US entity, becoming the Employer of Record (the direct employer), onboarding US employees, and managing the complex operational and HR processes of doing business in America.
Exclusive Talent Acquisition (ETA)
Businesses around the world partner with Foothold America and save thousands of dollars on their US hiring costs. With our ETA service, you can find and hire the best employees compliantly and competitively. We make it easy and affordable for you to hire the right candidate at the right time and at the right cost.
Establishing a legal entity in the US brings enormous potential for growth—and a unique set of challenges and complications. Partnering with Foothold America for your US entity setup ensures smooth and compliant registration in your chosen state – all whilst cutting through layers of bureaucracy and giving your company the freedom to concentrate on its larger business objectives.
GET IN TOUCH
Request a quote, talk with our US expansion experts or ask any questions. We will get back to you via email in less than 24 hours.