Start and Scale Your Business in the United States

The most common choice for foreign companies entering the United States is a Delaware C-Corporation. Delaware is used by 66.7% of Fortune 500 companies and provides the most developed corporate governance framework in the US. An LLC is appropriate for smaller operations, joint ventures, or real estate holdings — particularly where pass-through tax treatment is preferred. A Branch Office avoids the cost of a separate legal entity but exposes the parent company directly to US legal liability. The right choice depends on the parent company's country of origin, applicable tax treaty, planned US activities, and funding structure. VJM Global provides entity selection advisory as part of the US entry engagement. All timelines are indicative and subject to state processing times.

A Delaware C-Corporation or LLC can be formed in 1–2 business days with expedited filing. After entity formation, key steps are: - EIN registration with the IRS — 4–6 weeks by fax for foreign applicants - State foreign entity registration in the operating state — 1–4 weeks - BOI filing with FinCEN (mandatory for foreign-owned entities) — within 30 days of formation - US bank account opening — 2–6 weeks depending on bank End-to-end, a foreign company can be fully operational in the US within 6–10 weeks. All timelines are indicative.

A US subsidiary of a foreign company has these core annual obligations: - Form 1120 — US Corporate Income Tax Return - State income tax returns — in each state with nexus - Form 5472 — Information Return for 25%+ Foreign-Owned US Corporations ($25,000 penalty per failure) - Payroll tax filings — Forms 941, 940, W-2, 1099 - Transfer pricing documentation — under IRC §482 if related-party transactions exist - State sales tax returns — in states with economic or physical nexus VJM Global manages all of the above as an ongoing managed compliance engagement. Consult a qualified US tax professional before acting on any tax-related information.

Possibly. A foreign company selling into the US without a physical office may still have US tax obligations depending on whether it has a Permanent Establishment (PE) under the applicable tax treaty, or whether it has income effectively connected with a US trade or business. For sales tax, the South Dakota v. Wayfair ruling (2018) established economic nexus — companies crossing state-specific revenue or transaction thresholds must register and file in those states regardless of physical presence. 45 states and DC have sales tax; 5 states (Oregon, Montana, New Hampshire, Delaware, Alaska) do not. VJM Global conducts nexus studies and advises on treaty positions for foreign companies with US customers.

Transfer pricing refers to the pricing of transactions between related parties — for example, between a US subsidiary and its UK, Indian, UAE, or European parent. Under IRC §482, all such transactions must be priced at arm's length. Documentation must be in place before the US tax return is filed. If the IRS makes a transfer pricing adjustment and no contemporaneous documentation exists, the accuracy-related penalty is 20–40% of the underpayment (Treasury Regulations §1.6662-6). VJM Global prepares transfer pricing benchmarking studies and documentation for US subsidiaries of foreign groups — covering management fees, intercompany loans, IP licences, and goods supply arrangements.

VJM Global supports companies from the UK, UAE, Europe, India, Asia, and 75+ other countries to establish and operate in the United States. The engagement typically covers: - Entity selection and formation (C-Corp, LLC, Branch, or professional entity) - EIN registration and state-level registrations - BOI filing with FinCEN (mandatory within 30 days for foreign-owned entities) - Registered agent services across all states - US GAAP or IFRS-compliant bookkeeping and management accounts - Federal and state tax return preparation - Transfer pricing documentation (IRC §482) - Payroll processing and compliance - Multi-state sales tax nexus management All from a single point of contact — no need to coordinate between a home-country adviser and a separate US firm.

The Beneficial Ownership Information (BOI) report is a mandatory filing under the Corporate Transparency Act (CTA) 2021, administered by FinCEN. Under the FinCEN Interim Final Rule (March 26, 2025), domestic US companies are now exempt from BOI reporting. However, foreign companies registering a US subsidiary must still file within 30 days of formation or registration. Non-compliance penalties are up to $591 per day for ongoing failures. VJM Global handles BOI filing as part of the US entity setup engagement.

Yes. VJM Global provides end-to-end multi-state sales tax compliance including: - Economic nexus study across all 50 states - Voluntary Disclosure Agreement (VDA) filing to limit historical liability - State registration in all applicable jurisdictions - Ongoing monthly and quarterly return filing from a single compliance calendar Five states (Oregon, Montana, New Hampshire, Delaware, Alaska) levy no state sales tax. Of the remaining 45 states and DC, businesses may have nexus in anywhere from a handful to all 46 jurisdictions depending on revenue and transaction volumes.

A Branch is an extension of the foreign parent — not a separate legal entity. Branch profits are taxed at 21% federal rate plus a 30% branch profits tax (reduced under applicable treaties). The parent company bears direct legal exposure for branch liabilities. A US Subsidiary (C-Corp or LLC) is a separate legal entity incorporated in the US. It provides liability protection, is eligible for treaty-rate dividend withholding, and is required for companies seeking US investment. It files Form 1120 annually and must comply with IRC §482 transfer pricing rules. The optimal choice depends on the parent's treaty position, planned activities, and long-term US strategy. VJM Global provides entity selection advisory as part of the engagement.

VJM Global's US entry process is designed to get foreign companies fully operational within 8 weeks: - Week 1–2: Entity selection, Delaware incorporation, registered agent - Week 2–4: EIN application, state foreign entity registrations - Week 3–4: BOI filing with FinCEN - Week 4–6: US bank account opening facilitation - Week 5–8: Intercompany agreements, transfer pricing documentation, payroll setup All timelines are indicative and subject to IRS, FinCEN, state agency, and bank processing times.