Hastings International and Comparative Law Review


This Article presents a discussion of various structural tax issues that a Japanese company should consider when acquiring or starting a business in the United States. Its purpose is to offer tax planning ideas which will allow Japanese investors to minimize United States and Japanese taxes without unduly altering nontax considerations. The Article begins by examining the tax implications of operating through a United States subsidiary versus a branch. It then discusses the purchase of a United States business, focusing on the pros and cons of both stock and asset acquisitions. In conclusion, it considers the following areas: structuring the ownership of United States subsidiaries, financing a United States business or acquisition, and structuring joint ventures with United States companies.