Historically, international business owners give similar reasons for incorporating a wholly owned subsidiary in the United States. Most of our clients desire to take advantage of the vast market in the United States — the world's largest importer of goods and services. According to the U.S. Bureau of the Census, the resident population of the United States projected to November 11, 2007 is 303,342,048. In order to effectively take advantage of this vast market, it is desirable to create a "business presence" in the United States. Consumers in the United States are not fearful of products and services generated in the international market. They are, however, concerned about product delivery, warranty issues, service and technical support. For these reasons the creation of a "business presence" in the United States is clearly advantageous to the international business.

In addition to a desire to sell products and/or services in the vast United States marketplace, international businessmen and women desire to take advantage of favorable corporate tax rates in the United States, less sales competition, lower labor costs and the strong American dollar. Most of our clients do not desire to move to the United States on a full-time basis. The intended goal is to maximize product and/or service sales in a vast market with the income eventually returning to Canada at reduced tax rates.

 

© 2008 Gene R. Moses P.S.