U.S. Subsidiary Case Study

Situation:
Canada Ltd. has sold products in the US market for many years. Canada Ltd.’s sale orders have been taken in Canada and accepted in Canada. The company’s products have been shipped from Canada to the end user in the US. Canada Ltd. has been in operation for 3 years, has Canadian employees and profitable financial statements. Canada Ltd. desires to take the next step, open its own warehouse in the US and hire US workers. Canada Ltd. desires to manage its US operation by transferring a key supervisor to the US. The supervisor is denied access to the US due to his lack of immigration status.

Solution:
Canada Ltd. forms a US Corporation. The US Corporation becomes a wholly owned subsidiary of Canada Ltd. Canada Ltd’s supervisor applies for an L Visa to enter the US.