Nonresident business enterprises coming into the United States are subject to tax ramifications wholly distinct from how United States taxpayers are taxed. Evaluation of how to structure American activities is critical – i.e., whether to form a separately taxable United States subsidiary or conduct direct United States activities.

United States businesses with multinational activities can sometimes achieve American tax deferral by separately incorporating outside the United States; however, American tax deferral in curtailed by anti-deferral regimes (and often hinges on the rates of foreign taxes incurred from offshore activities). Conducting multinational activities through an American corporate entity can often be the best route within the context of the foreign derived intangible income deduction.