Creating an US LLC subsidiary

[gnud]

Hello,

I own an LTD and would like to create an LLC subsidiary in America. What are the formalities that I need to undertake on the LTD side for this? Do I need to register or declare it somehow? Or is simply creating the LLC and indicating the LTD as the beneficiary on the IRS forms enough?

The LLC won't be managed from the UK, so there's no need to declare it separately to the HMRC.
All information about subsidiaries that I've found so far is about UK to UK companies.

 

[Scalloway]

If you put company money into the US company it will be be an asset in the compnay Balance Sheet.

Have you asked your company's accountant about this?

 

[gnud]

Thank you.
I will not put any money in the LLC, the LLC will be earning money from clients in the US. In fact the money will flow from the LLC to the LTD.
No, I haven't asked yet.

 

[Scalloway]

Surely setting up a US LLC will cost something? eg fees. Who will pay for this? If your ltd is going to benefit it should be paying and this will be reflected in the ltd's accounts.

 

[gnud]

In fact the LLC already exists, I paid for it myself, then I created the LTD because I realized it'd make my life easier in many ways if the LLC is owned by an LTD. So now I need to formalize it, and make the LLC a subsidiary of the LTD.

One of the reasons for this arrangement is for example that if I want to create a branch office in a country where I live, I need to submit board meeting minutes, a record from a public register, etc., the LLC has none of these. At the same time I want to be able to use American service providers available only to US entities, so I need to keep the LLC.

 

[Scalloway]

You need to register the Ltd as owner of the LLC. that will be done under US law so I can't help there. You should create a file of all the documents regarding the setup of the company for your ltd's files. The ltd will need to reimburse you the cost of investing.

 

[gnud]

Thank you!

 

[Frank the Insurance guy]

You need to engage with a US adviser - there are many legal requirements which differ from state to state, so best to get a local adviser in the state you have set up the LLC.