As global trade rules evolve, more overseas companies are creating U.S.-based entities to bypass tariffs and secure direct access to the American market. Beyond cost savings, this move builds credibility with U.S. customers, strengthens supply chains, and positions companies for long-term growth.
The Benefits
- Avoid tariffs by producing or distributing within the U.S.
- Be closer to customers for faster delivery and better service.
- Build trust with American partners who prefer dealing with U.S. entities.
- Strengthen resilience by reducing reliance on overseas supply chains.
How to Set Up a U.S. Entity: 5 Key Steps
- Pick a Structure – Most overseas firms choose a subsidiary C-Corp (often in Delaware) for credibility and protection. An LLC is another flexible option.
- Register & Get an EIN – File with the state, appoint a registered agent, and obtain a tax ID from the IRS.
- Set Up Banking & Taxes – Open a U.S. bank account, adopt accounting standards, and prepare for federal and state tax obligations.
- Hire & Operate Locally – Comply with U.S. labor laws, explore visas if moving international staff, and secure office, warehouse, or manufacturing space.
- Protect & Comply – Register trademarks, safeguard IP, and stay on top of annual filings and tax requirements.
The Bottom Line
Setting up a U.S. entity is more than just a tariff workaround—it’s a growth strategy. By going local, overseas companies can reduce costs, improve market access, and build a stronger, more resilient presence in the world’s largest economy.
