Set up a Subsidiary in USA

Updated on Wednesday 02nd June 2021

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Foreign investors in USA can set up subsidiaries under limited liability companies which are also known as U.S. subsidiaries. The incorporation process of a subsidiary has a few formalities and can be entirely explained by our team of company formation representatives in USA. You can also analyze the registration procedure of a company in different states with the help of our general guides to company incorporation.

Requirements for opening a subsidiary in USA in 2021

Subsidiaries formed under the rules and regulations of an LLC in USA are subject to fast incorporation and must respect the following conditions:
  • prepare the Articles of Association with information about the owners, the board of managers, the activities, the registered agent, the business address;
  • create the operating agreement, an internal document which shows the responsibilities of the owners;
  • apply for EIN (Employer Identification Number) in order to pay the taxes in the chosen US state;
  • open a bank account for your financial operations (the company's documents will be needed).
If you want to start a business in USA in 2021 and particularly a subsidiary, it is suggested to talk to one of our company formation agents in USA and ask for support in this sense. We also mention that our team can act on behalf of your subsidiary as a representative agent.

Why should I choose Delaware for opening a subsidiary?

Companies from abroad can set up Delaware corporations and perform the activities as subsidiaries. This state is preferred for business due to an excellent tax regime which aims a better environment for foreigners willing to expand their activities on the American market. Such a corporation is not subject to annual stockholders meetings, transaction approvals made by the board of directors like in the case of an LLC, reasons why setting up a subsidiary in this particular state is easy. We invite you to find out all the details about opening a subsidiary in 2021 from our agents.

Do I need a physical address for my subsidiary in Delaware?

It is good to know that a subsidiary in Delaware does not need to have a physical business address or a bank account, as it can perform financial operations from overseas.

A subsidiary in USA is subject to payroll, bookkeeping, and other accounting matters and can act independently from the parent company. If you want to open a company in USA in 2021, we suggest you contact our team of company incorporation specialists in USA for complete information and assistance.