For decades, the United States has been one of the most important export and investment markets for German, Austrian, and Swiss companies. Especially for small and medium-sized enterprises, the US market offers attractive growth opportunities, a high degree of innovation, and access to one of the largest domestic markets in the world.

At the same time, market entry into the USA differs in many respects from expansion within Europe. In addition to differing legal frameworks, tax issues, cultural differences, specific labor law regulations, and regional differences between individual states play a decisive role.

For many years, Urban Thier & Federer has been assisting companies from Germany, Austria, and Switzerland in successfully establishing their business operations in the United States. Our goal is to enable our clients to enter the US market in a legally compliant and economically sensible manner and to support their long-term growth.

A successful market entry begins long before the actual company founding. Numerous strategic decisions must be made as early as the planning phase, which can significantly influence later economic success.

We advise our clients on, among other things:

• the selection of the appropriate legal form and business structure
• the establishment of subsidiaries or branches
• corporate and tax law issues
• the establishment of sales and marketing structures
• international contractual relations
• Import and export questions
• Developing long-term business strategies for the US market

In doing so, we always consider both the legal requirements in the United States and the impact on the corporate structure in Europe.

In our experience, international expansion rarely fails because of individual legal issues. Rather, organizational and practical challenges are often the deciding factors.

This is why we also support our clients with numerous economic issues that are typically associated with founding a business and market entry. Together with a long-standing network of specialized partners, we assist companies, for example, with organizing logistical processes, relocating business functions, and with the relocation of executives and employees.

We also provide consulting services for the development of sales structures and assist companies in establishing new business relationships in the United States.

In addition to the legal frameworks, business cultures in Germany and the United States also differ, in some cases significantly.

While German companies often plan for the long term and place great value on detailed contract design, American business partners are frequently more focused on quick decisions and pragmatic solutions. These differences directly impact contract negotiations, corporate management, and cooperation with customers, suppliers, or investors.

We support our clients with many years of experience in recognizing cultural differences early and avoiding misunderstandings in advance.

An important component of many business startups and US expansions is the deployment of your own employees on site.

We advise companies on the legal framework for sending executives and employees to the United States, and we assist them with related corporate, labor, and immigration law matters.

Furthermore, we support our clients in selecting suitable locations as well as in renting or purchasing office, commercial, or industrial properties. The choice of the right location can have a significant impact on personnel recruitment, logistics, tax burden, and funding opportunities.

Many companies are surprised that numerous U.S. states actively court international investment.

Depending on the location and investment project, different funding programs or economic incentives may be considered. These can include, for example, investment grants, funding programs for job creation, training subsidies, or tax incentives.

Since these programs are mostly regulated at the individual state level, the requirements and funding opportunities vary significantly.

We support our clients in identifying suitable programs and, to the extent legally and practically possible, handle communication and negotiations with the responsible economic development agencies, authorities, and other public bodies.

Not every company already needs a fully equipped branch with its own employees and long-term lease agreements at the beginning.

Medium-sized businesses, in particular, often initially desire a legal presence in the United States of America to acquire initial customers and test the market without having to make significant investments right away.

In many cases, such market entry can be realized with a cost-effective structure. This includes, for example, establishing a US company, a business address, telephone and mail service, as well as the option to use meeting or conference rooms as needed.

Such a solution allows companies to already have a presence in the American market and build initial business relationships before making more extensive investments.

Even with a phased market entry, Corporate and tax law issues to be considered early on.

We advise our clients in particular on:

• the appropriate corporate structure
• the tax implications in the US and Europe
• of the design of initial contracts with U.S. customers
• avoidance of unnecessary liability risks
• for the preparation of a later expansion of business activities

Careful planning at the outset often lays the foundation for sustainable growth and avoids costly restructuring later on.

For many years, Urban Thier & Federer has been assisting small and medium-sized businesses in particular with their expansion into the United States. From the initial market analysis through company formation to the long-term expansion of business operations, we support our clients with integrated legal and strategic advice as well as an experienced international network.