In the era of globalization, it is difficult to avoid getting involved in international legal matters. People are constantly traveling internationally; they get married to a foreign national and would like to live, study or work in the same country as their fiancé or husband.

Many German companies create either a company themselves or create a Joint Venture with an existing company in the USA. Due to the difference in culture, the law and the way of doing business, many newly created companies or joint ventures fail often after a few years or even months.

Another issue is that the German usually is stuck with the loses because the Americans prefer to create a Limited Liability Company (LLC). An LLC pursuant to USA law will be recognized by the German tax authorities only under strict conditions as "Kapitalgesellschaft". Consequently, the losses will not be transferred to Germany.

It is therefore important for a company expanding into the United States to consult, inform and analyze the pitfalls, risks and opportunities BEFORE setting up a company or joint venture.