I want to form a company in the U.S. that is seperate from its German parent company can it still be a subsidiary.

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I want to form a company in the U.S. that is seperate from its German parent company can it still be a subsidiary.

I am looking to creat an LLC in the US but for all legal and tax purposes I want it to be completely seperate from its German parent company but the US LLC will be owned technically by the German parent and the directors are the directors of the German parent. The directors are also non-citizens. What is the most advantagous way of going about this process? What are my options, is an LLC the best way or is C-corp? Can the German parent get taxed as well in the U.S.?

Asked on June 30, 2009 under Business Law, New York

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You're going to need to take the time and spend the money to work this through with the right professional help, probably a law firm that has people who do international trade and tax law, and the German parent company's legal staff will be making itself heard as well.  There are a number of factors that go into a choice of business entity, such as what line of business you will be in, income and investment strategy, and more, in addition to the things you've already identified.  You might, in fact, end up needing to form a full-fledged corporation.  One place you can look for qualified attorneys is our website, http://attorneypages.com


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