Ten Key Legal Issues to Consider When Moving Stateside

Morrison & Foerster LLP
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Stateside -

Even before the uncertainties following the Brexit referendum result, a move to the U.S. was an attractive proposition for high growth UK businesses. Common language, similar culture, access to capital and a familiar business approach are appealing to those seeking growth. However, the regulatory and legal complexities in the U.S. market can pose significant challenges for new entrants.

Corporate Structure -

The best corporate structure for your U.S. operations will depend on your business strategy and tax considerations. If you plan to raise venture capital in the U.S. you might consider reorganising as a Delaware corporation. A ‘flip transaction’ (i.e. making your existing UK company a subsidiary of a new U.S. company) is one way of achieving this. Or, if you plan to launch operations in the U.S., you may choose to form a U.S. subsidiary. Reorganising in the U.S. or establishing operations can be complicated and, at the very least, you will need to appoint directors, develop a tax strategy and meet all U.S. corporate duties.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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