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Yet Another European business / US Branch question

Asked by: Milo42 - 7 June, 2013 I am a US resident. A European (Italian) consulting company, that is interested in my services, wants to expand with a branch office in the US. They also want me to participate as a partner in the US branch. The US branch would not be able to directly generate revenue for one-two years, but basically act as a support to the other business' core activities. For this reason, I, and other US employees that I envision hiring, should be supported with a stipend. The funds for this stipend come from the revenue generated are all billed in Europe.
Given all these caveats, what is the best approach to form a US branch?
Answered by: Ray Albert - 9 June, 2013 Dear Milo,

A U.S. entity may be owned partially or wholly by international persons or companies. For example, you may list a company in Italy and yourself as owners of a U.S. company. This is true for both LLC and Corporation.

Please keep in mind, while you may register the company in any state, if you plan on having salaried employees, the company would need to be registered in the state(s) where the employees physically live/work.

In situations such as yours, it is always strongly suggested to discuss your business plans with a CPA before deciding on the state of registration and entity type.


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