The quick answer is that the foreign company should start a U.S. based C corporation.
(Here we are taking in consideration a Turkish Company entering the US market)
(From Legal and Tax perspective, as advised by our CPAs, Financial Advisors and Legal experts)
Foreign companies doing business in the U.S. will either set up as a branch/flow-through or a corporate subsidiary.
  • Branch/Flow-Through 
    • Subject to tax on Effectively Connected Income (ECI) at corporate rate – 21% currently
      • because ECI isn’t defined, it can attach to both
        • income derived from U.S. based activities
        • income derived from non U.S. based activities
    • Subject to Branch Profits Tax on net income basis – 15% currently
      • Will go up to 30% if US-Turkey Tax Treaty is ever abandoned
  • Corporate Subsidiary
    • Subject to U.S. Based Corporate tax – 21% currently
    • Subject to tax on Dividends if/when paid – 10%
    • Subject to tax on Royalties paid to For Turkish Parent – 10%
      • If applicable
From a general tax perspective, a corporate subsidiary will result in 
  1. 5% tax savings on profits generally; and
  2. Paying additional taxes only when the company issues dividend payments
    • Under a branch/flow-through model, 36%+ is paid on the net income regardless of any dividend payouts
  3. Only paying taxes on revenue generated from U.S. based activities
    • rather than operating under the ambiguity of ECI, which has often led to companies being taxed on revenue generated from foreign activities
  4. Better shielding the Turkish-parent from unpredictable U.S.-Turkey trade relations
    • the current relationship between the U.S. and Turkey is strained and has only gotten worse over the past 12 months. As such, operating as a branch/flow-through will subject to Turkish parent to unnecessary international relations risks that could jeopardize the success of the U.S. expansion
We tried to be as succinct as possible, but these are the high-level considerations.
There are other consideration that will also impact the decision making process.
We are always free to discuss in more detail with our clients.