I currently have an online based company LLC in the state of California. I sell products that customers place orders and I can ship world-wide. I do all my manufacturing in Spain then import into the US.
My main question is if there are physical retails stores in Spain or Europe that want to sell my product do I need to create a subsidiary in Spain to be able to sell directly to them? The idea being my product would go directly from factory in Spain to retail store without ever having to be imported into the US.
When would someone want to or need to create a foreign subsidiary outside of the US based parent company?
Thanks!
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To have a foreign subsidary for seperating out different legal environments. So say you will have a sales force in Spain. You may want to make an offer to those employees that is different then your main business and so would want to create a subsidary. I suggest writing up a short internal business plan on how this would work. Why would these companies buy from you if they are getting it from factories in the other country? How would you collect taxes for spain? Look for what characteristics are in Spain that are different in the US and if it will require another legal entity to solve. Get an attorney involved after you've created a list of questions and a preliminary business plan that you would be working form to find out what are the wholes. Luck |
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