QUESTION
Do I have to register a legal entity if I am setting up a branch office in the US for a foreign company?
Asked on Sep 07th, 2012 on Taxation - Oregon
More details to this question:
I am a US citizen, and will be responsible to set up a branch office in US for a foreign company. The office only acts as a sales office, and the contract will be signed between US clients and my company headquater in foreign country.
3 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would suggest that a US entity be formed and you consult with an attorney regarding all of the tax and regulatory issues which you plans will create.
Answered on Sep 16th, 2012 at 12:40 PM
Peter James DeRose
Short answer, YES. The foreign corporation will be responsible to pay tax on its net income generated from your US office. The presence here dictates that they will be taxed just like a US corporation on "income derived from whatever source." You will need lots of legal help in registering the corporation and insuring that the entity is a recognized and insulated business entity such as a corporation, LLC or however you decide upon doing business. It may be wiser to form a US corporation and have a partnership with the foreign corporation-takes some thought to figure out what is best from a tax and non-tax standpoint. Hire experienced counsel.
Answered on Sep 16th, 2012 at 12:34 PM
Tax Attorney serving Portland, OR
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Bullivant Houser Bailey PC
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No, but it can be a good idea.
Answered on Sep 14th, 2012 at 6:22 PM