US Subsidiaries and Branch Offices

US SubsidiaryBoth branch offices and subsidiaries are separate locations where business is conducted from the main office of the corporation. The major difference between these is that a subsidiary is a separate legal entity, while a branch office is the same entity as the parent, or larger, corporation.

Although branch offices are sometimes a good idea for domestic companies, it is usually a better idea for foreign corporations to setup US subsidiaries to conduct business in the US for both tax purposes and liability issues.

Subsidiaries can be formed by purchasing a controlling interest in an existing company or by creating the company itself. The most common forms of subsidiaries are corporations or LLCs. The parent company has a duty to the subsidiary to promote the subsidiary’s corporate interest, act in its best interest, and to maintain a separate corporate identity. If the parent company fails to meet these requirements, the courts will view the two entities as one for liability purposes.

**Remember, if you are not currently conducting business in Florida and you want to setup a branch office or subsidiary, you must register to do business in Florida.**

If you are interested in setting up US subsidiaries or registering to do business in Florida, contact Boyer Law Firm’s business law attorneys today.

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