August 22, 2025

This memorandum evaluates three potential locations within the U.S. - Delaware, New York City, and Los Angeles - for the establishment of a new C corporation subsidiary by a Korean parent company. The objective is to furnish the parent company's executives with comprehensive information to facilitate an informed decision aligned with their long-term strategic objectives in the American market.

The central decision involves choosing between incorporation in a state renowned for its sophisticated corporate laws (Delaware) or directly within a jurisdiction slated for physical operations (NYC or LA). This presents a strategic trade-off: prioritizing robust corporate governance and legal predictability versus streamlining administrative processes and tax compliance.

Disclaimer: The content of the memorandum is provided for general informational purposes only and is not intended to constitute legal, tax, accounting or other professional advice. You should not act or rely on any information herein without seeking the guidance of a qualified professional who is fully aware of your individual circumstances. Confida Tax LLC does not assume any responsibility for errors or omissions or for outcomes related to the use of this information.