Benefits of Having a US Subsidiary for your Company

At Atom Law Group, we are here to help your business transition to the American market. There are several benefits to having a US subsidiary for foreign companies, including:

  • Your brand has now become an American brand.

    You can still continue to manufacture in Turkey but start to brand yourself as an American brand if you would like. Consider that nearly all American companies manufacture their products in different countries but continue to brand themselves as American. An American brand has immense recognition worldwide. If you would like, you can become one simply by starting a subsidiary in the United States  

  • Legal protection

    A US subsidiary provides legal protection for the parent Turkish company, as it can limit the Turkish parent company's liability for the actions of the subsidiary.

  • Access to the large and wealthy US market:

    The US has the largest economy in the world, providing a significant opportunity for Turkish companies to increase their sales and revenue. Having a US subsidiary provides increased access to the US market, as it can help a Turkish company to better understand the market and establish relationships with local customers and suppliers. In other words, you are now an American company, no longer a foreign company in the US.

  • Protection of trademarks and intellectual property:

    The US has strong laws in place to protect intellectual property, which provide additional security for Turkish companies operating in the USA.

  • Ability to participate in government procurement:

    Having a US subsidiary can make it easier for Turkish companies to bid on and participate in American government procurement opportunities.

  • Potential to access US-based talent and resources:

    Having a US subsidiary provides access to a skilled workforce, technology, and other resources that may not be available in Turkey.

  • Improved supply chain and logistics:

    Establishing a US subsidiary helps Turkish companies improve their supply chain and logistics by being closer to suppliers and customers.

    Better access to financing and investors: Having a US subsidiary provides access to the US financial markets, making it easier for Turkish companies to raise capital and access investment opportunities.

  • Tax benefits:

    Having a US subsidiary provides tax benefits, such as the ability to take advantage of lower corporate tax rates or the ability to use the subsidiary as a conduit for investments in the US.

  • Flexibility

    Having a US subsidiary provides a Turkish company with more flexibility in terms of its operations and business strategy, as it can allow the company to adapt to local market conditions and respond more quickly to changes in the market.

  • Local management:

    Having a US subsidiary provides a Turkish company with local management, which can help it better understand the needs of the market and make more effective business decisions.

State Selection In Forming An American Subsidiary for Your Company

When incorporating a business, you should consider the following factors when choosing a state:

  • Taxation: Different states have different tax laws and rates, so you should consider which state has the most favorable tax laws for your business.
  • Business laws and regulations: Each state has its own set of laws and regulations governing businesses, so you should research the laws in each state to see which one is most favorable for your business.
  • Access to resources: Consider whether the state you're considering has access to the resources your business needs to operate, such as a skilled workforce or necessary raw materials.
  • Cost of living: The cost of living in different states can vary greatly, so you should consider whether you will be able to attract and retain employees in the state you're considering.
  • Personal preference: Lastly, you should consider your own personal preferences, such as which state you would like to live and work in and whether you have any existing business connections in the state.
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