Legal & Tax Aspects

Summary of the legal and tax questions many international companies should consider when doing business in PA

How long will it take me to set up a subsidiary in Pennsylvania? And how much will it cost me?

Assuming you have the necessary information at the ready, you can create a subsidiary in as little as a day. “Necessary information” includes information such as the company name, address, contact persons, intended capitalization, and similar items. Once the company is formed, you will likely be required to draft organizational resolutions and other “housekeeping” items may be required – such as establishing a bank account, adopting bylaws, and arranging financing. Legal fees associated with incorporating or otherwise establishing a subsidiary typically range from $750.00 (U.S.) to $1,500.00 (U.S.), depending on the nature and complexity of the subsidiary relationship. Pennsylvania charges a fee of $125 to file the documents needed to register your company.

Is it better to set up a Corporation or an LLC?
Why it’s just as easy to incorporate in Pennsylvania as it is in Delaware.
How do I protect my U.S. subsidiary, as well as its parent, from litigation by business partners or clients?
Do I have to pay taxes in Pennsylvania, even if I do not make any profit the first year or the first few years in which I do business in the state?
Pennsylvania’s corporate net income tax rate is higher than in many other states. Does this mean my company will be better off locating somewhere else?