The subsidiary in the US. For companies with real US business.

Customers in the US, a supplier in Texas, a project in Florida: anyone doing business there will sooner or later need a company of their own in the US. We form your US subsidiary, obtain the tax numbers, prepare the account application and keep the compliance calendar — coordinated with your tax adviser at home.

In brief

Your company sets up a US subsidiary when it sells, buys, signs contracts or has staff working in the US. The shareholder is usually the GmbH, AG or holding company in the home country. FIAON Global handles the formation, EIN, registered agent, address and the preparation of the account application; our partner tax adviser reviews the tax coordination between the two countries before formation.

When a US subsidiary makes sense

A company of your own in the US is worthwhile when real business develops there — not as a formality. Typical reasons are: If there is no such reason, we tell you so in the first call.

  • US customers require a contracting party based in the US
  • Purchasing, warehousing or manufacturing in the US
  • Projects on site, for example in construction or plant engineering
  • Employees or sales partners in the US
  • You want to keep liability for the US business separate from the parent company

LLC or corporation for the subsidiary

  • LLC — Lean and flexible: An operating agreement instead of fixed corporate bodies, no minimum capital rules. Often the simpler form for entering the US market.
  • Corporation — When shares are to change hands: The usual form when US investors, joint venture partners or employees are to take a stake.

How your US subsidiary is set up

  • 1. Coordination: Kick-off call with you, review by our partner tax adviser, together with your own tax adviser if you wish.
  • 2. Resolution and documents: Commercial register extract of the parent company, passports of the managing directors, name and description of the subsidiary’s business activities.
  • 3. Formation and EIN: Filing with the state by our team on the ground, operating agreement or bylaws by our partner lawyer, EIN from the IRS.
  • 4. Account and obligations: Account application fully prepared, compliance calendar for US filings and state fees.

What you need to know

  • If the US subsidiary is in fact managed from Germany, Austria or Switzerland, it may be taxable there. Who manages the subsidiary, and from where, is therefore part of the review before formation.
  • A shareholding in a foreign company must be reported to the tax office — in Germany under section 138 of the German Fiscal Code (AO). If a Florida LLC is owned by a GmbH or AG, that company also files its own tax return in Florida (Form F-1120).
  • Transfer prices between parent and subsidiary, payroll in the US and visas are not part of the packages; we can name partners for these.

The right package

For the subsidiary with an account and the card ladder: Global Banking.

Frequently asked questions

Can my GmbH own a US LLC or corporation?

Yes. A GmbH, AG or holding company can be the shareholder of an LLC or corporation just as a natural person can. In that case we need the commercial register extract of the parent company.

Is a US subsidiary taxed in the US?

That depends on the legal form, the activity and the place of management. Our partner tax adviser reviews this before formation; your tax adviser handles the ongoing tax return.

Does FIAON also handle visas for employees?

No. Visas, payroll and transfer prices are not part of the packages. On request, we can name partners for these.

How long does it take to set up a US subsidiary?

The company is usually in place after a few weeks, once the documents are complete. The IRS issues the EIN on its own timeline.