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What is the difference between a branch and a subsidiary?

Incorporation & entity structure

A subsidiary is a separate legal entity owned by the parent, with its own liability and its own tax filings. A branch is the same legal entity operating in another country, so the parent carries the liability directly.

Most companies choose a subsidiary, because a branch exposes the parent to local claims and local tax on its own profits.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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