A hybrid Delaware-Latam legal structure can be an effective way for startups to synchronize the structure of their Latam company with their US company. Startups born in Latin America often start incorporating using a local company in their country of origin. However, incorporating in the US can provide significant benefits, such as improved access to funding, increased credibility, and more favorable tax treatment.
By making the Latam company a wholly-owned subsidiary of the Delaware company, startups can take advantage of the benefits of incorporating in the US while still maintaining a presence in their country of origin. This hybrid structure allows startups to operate in both markets, taking advantage of the benefits of each. Additionally, this structure can help mitigate risks associated with doing business in a foreign country, such as regulatory and legal challenges.
