Selecting a department or subsidiary to broaden abroad

Law360 (April 1, 2021, 12:39 p.m. EDT) – Whenever you are expanding your business operations to a new jurisdiction, be it organically or through an acquisition, you must first decide whether to operate through a branch or a subsidiary. It is often a threshold decision that takes various factors into account, including the legal characteristics and tax consequences of each alternative.

Each jurisdiction has its own set of rules and options. Therefore, it is vital for US-based multinational corporations to have a good grasp of relevant local laws and how they interact with US tax law before venturing into a foreign market.

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