Set up a company in the United States | Save tax legally | W-V Law Firm LLP
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Setting up a company in the United States?

Learn how to do it legally and compliantly:
21% federal corporation tax
International credibility
High legal certainty
Access to US banks
You can reduce your tax burden legally. We will be happy to advise you in detail and offer you a free initial consultation.
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Pros and cons of setting up a company abroad

If you relocate your residence:
  • An exit tax in your previous country of residence may apply to unrealised gains

  • Timing and structuring your assets should be done early

  • Establishing US tax residence can trigger more extensive reporting and tax obligations compared with most EU systems

Without emigrating:
  • A US company does not automatically reduce the tax burden in the EU

  • CFC rules, the place of effective management and substance requirements in your home country remain relevant

  • Double tax treaties, robust documentation and genuine operational substance matter more than a purely formal incorporation

What makes the United States attractive as a business location?

The United States is a federal republic in North America with around 341.8 million inhabitants and the US dollar as its currency.

Foreign ownership is generally permitted, and in many states incorporation is possible quickly. The US is regarded as a top-tier location for holding and operating structures, particularly where credibility, investor access and predictable courts are decisive.

Tax rates:

  • Federal corporation tax: a flat 21%.
  • State-level corporation tax: varies by state, in some cases 0%, in others higher rates.
  • Withholding tax on dividends to shareholders not resident in the US: generally 30%, often reducible under an applicable double tax treaty.
  • Sales tax: no nationwide VAT system. Instead, state and local sales tax rules apply.

For high-net-worth individuals and internationally active corporate groups, a US structure can offer significant strategic advantages. It provides direct access to deep capital markets and is often the preferred structure for venture capital investment, major US customers and structured M&A transactions.

The flexibility of US entity types such as LLCs, C corporations or limited partnerships allows clear ring-fencing of risk, consolidated holding structures and bespoke governance models. Where a double tax treaty applies, withholding taxes may be reduced and permanent establishment risks can be delineated more clearly. In addition, an onshore US company typically enjoys higher reputational acceptance and often encounters fewer banking reservations than classic offshore structures.

At the same time, there are material risks that require careful planning. A common issue is the so-called double layer of taxation: profits of a C corporation are taxed first at company level, and dividends may then be subject to US withholding tax.

Business activities in multiple states can create additional administrative and tax complexity, particularly around sales tax, payroll and registration obligations. From a European perspective, anti-avoidance rules such as CFC provisions or reviews of the place of effective management may result in profits being taxed in the home state if there is insufficient substance.

In addition, for persons not resident in the US, US estate tax exposure may arise once US assets exceed a value of USD 60,000, unless an applicable double tax treaty provides protection.

Beneficial ownership reporting obligations under the Corporate Transparency Act have been amended. Since 26 March 2025, companies incorporated in the US are exempt from BOI reporting. However, certain foreign companies registered in the US may still be required to file.

Contact us for an individual review of your structure and possible alternatives.


FAQs

Is it easy to obtain a VAT number?

There is no nationwide VAT system in the United States.

Is it easy to obtain an EIN?

The US tax authority can issue an EIN immediately online for eligible applicants.

Is remote incorporation possible?

Yes. Incorporation and most administrative steps can be handled remotely. In practice, opening a bank account is usually the most time-consuming step.

Which locations worldwide are best suited to paying as little tax as possible?
Tax Burden Banking Reputation Bureaucracy Legal Security Costs
USA 21-0%
from EUR 1,900
Singapore 0%
from EUR 2,950
Hong Kong 0%
from EUR 1,900
Cyprus 15%
from EUR 1,900
Malta 5%
from EUR 2,500
Ireland 12,5%
from EUR 1,950
Trust 0%
from EUR 4,900
England 25-19%
from EUR 1,000

Tax compliance in your country of residence

Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income, in some cases even if profits are not distributed.

Depending on your personal circumstances, a suitable holding structure may be necessary to comply with tax rules and avoid unnecessary tax risks.

To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.

Our advisers will be happy to review your case and advise you accordingly.

1.
Analyse your needs
We assess your situation to define goals, risk tolerance, tax exposure and asset-protection priorities.
2.
Carry out a location analysis
We compare potential jurisdictions based on tax law, banking access, compliance requirements and your country of residence.
3.
Incorporate the company and, if needed, set up a foundation
Open bank and brokerage accounts and, where required, implement the asset-management structure

Our advantages

Tax optimisation
Tax optimisation
Reduce your tax burden legally by 50–85% domestically and internationally.
Sustainable asset protection
Sustainable asset protection
Protect your wealth over the long term from economic and legal risks.
Cross-border business models
Cross-border business models
Develop international corporate structures for greater economic freedom.
Corporate structuring & company formation
Corporate structuring & company formation
Optimise your corporate and shareholding structures for growth and tax savings.
Foundations & wealth management
Foundations & wealth management
Use tailored foundation structures for future generations.
Emigration & exit taxation
Emigration & exit taxation
We support your change of residence and help you avoid exit taxation.
Personal advice & implementation
Personal advice & implementation
Individual solutions with personal support from analysis through to implementation.
Exclusive expert network
Exclusive expert network
Access to experienced tax advisers, solicitors and international business experts.

How our clients have successfully reduced their tax burden with our strategies

Comprehensive personal advice with a great result!
Conversation in Nice with our long-standing client Marco about our collaboration to date.
Marco V.
Marco V.
Conversation with Andreas Schneider
Andreas relocated to Switzerland many years ago and shares his experiences of Switzerland and of us as his trusted partner throughout the journey.
Andreas S.

W-V Law Firm LLP

Your partner for corporate law, foundations, banking and expansion
Successfully established in the market since 2013.
Advised and supported more than 2,000 clients
Advised and supported more than 2,000 clients
Leading law firm in the European region
Leading law firm in the European region
Always solution-focused and personally available
Always solution-focused and personally available