Key Considerations for Foreign Businesses Expanding into the United States:
Mitch Shelowitz Offers Critical Advice in Association of Corporate Counsel- IR Global Magazine
When forming a US subsidiary, the goal should be to create a separate, independent business entity. We typically recommend composing the board of directors of the subsidiary with a combination of officers or directors of the foreign parent, and at least one local US officer. At the same time, we generally recommend that the officers of the subsidiary such as the CEO, CFO, COO, VP sales and other individuals engaged in the day-to-day operations of the business be US-based employees of the subsidiary.
Critically, when initiating business operations in the US, the parent should not engage an individual as a consultant or employee, since this person will be creating minimum contacts on behalf of the foreign parent in the US.