Your Delaware holding company is only half the equation. The Mexican subsidiary matters just as much.

Many founders assume that once they’ve incorporated a Delaware C Corporation, choosing the Mexican operating entity is a simple administrative step. In practice, that decision can affect corporate governance, tax planning, financing, and even how easily your company scales.

Not every Mexican entity is designed for the same purpose. While a S.A.P.I. is often associated with venture-backed companies, it is not necessarily the best choice for a Mexican operating subsidiary beneath a Delaware parent. Likewise, a SAS may not even be available if your Delaware company will own the Mexican entity.

The right structure depends on how your business is organized—not on what is most commonly used.

Take a look at the guide below for a practical overview of the corporate structures most commonly used by startups expanding into Mexico.

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