The first question many Turkish manufacturers ask about the United States is whether to set up a company. A more useful starting point is the commercial model: who will buy the product, how it will reach them and what resources the business needs. Entity, tax and immigration decisions should support that plan.

Distribution and direct sales are commercial models. An E-2 visa is an immigration route that may support hands-on management; it is not a substitute for either model. These options can work together as a business develops.

1. Selling through a distributor or dealer network

A U.S. distributor can provide local customer access without requiring the manufacturer to build its own full sales operation at the outset. The initial capital commitment may be lower, although product compliance, customs, insurance and contractual obligations still need attention.

The trade-off is reduced margin and less control over customer relationships. Exclusivity should be assessed carefully: territory, duration, minimum purchase targets, reporting, termination rights and access to customer information all matter. A distribution agreement that looks attractive on day one may restrict future growth if performance expectations are unclear.

This route can suit a business testing demand or entering a market where a capable local partner already has the required channel. The agreement should support learning and measurable progress.

2. Establishing your own U.S. entity

An entity can support direct sales, local contracts and a growing operation. Ownership alone does not require relocation and does not confer permission to work in the U.S. The practical model also needs banking, a registered agent, appropriate registrations and dependable accounting arrangements.

Delaware or the operating state? Delaware can be suitable for some investment and governance structures. A business operating in another state may also need to register there and meet its obligations. Compare total administration and cost rather than choosing a state by reputation alone.

LLC or C corporation? An LLC is a legal form, not a single tax treatment. Under IRS rules, its federal classification depends on ownership and elections: it may be treated as disregarded, a partnership or a corporation. Foreign ownership can create additional reporting requirements. A C corporation generally pays entity-level tax, while distributions may raise withholding questions. Treaty relief depends on eligibility and the facts.

Related-party pricing. Sales between a Turkish producer and its U.S. affiliate require a supportable transfer-pricing approach. Review functions, assets, risks and documentation with qualified tax advisers in both countries.

This model becomes more attractive when recurring demand, margin potential and the need for direct control justify the ongoing cost.

3. Considering an E-2 investor visa

Türkiye is an E-2 treaty country. Eligible Turkish nationals may seek this temporary visa to develop and direct a qualifying U.S. enterprise. Merely registering a company is insufficient.

The investment must be substantial in relation to the business, committed and at risk. The enterprise must be real and operating, meet nationality requirements and satisfy the non-marginality test. There is no universal dollar threshold that guarantees eligibility. Investment commitments and the application sequence should be planned with immigration counsel before funds are deployed.

E-2 does not itself grant permanent residence. Continued eligibility, rather than the mere existence of a company, matters for renewal. This route may be relevant when the commercial plan requires the investor’s active presence in the U.S.

Separate the three decisions before comparing options

A distributor agreement answers a commercial question. Incorporation establishes a legal vehicle. Immigration status addresses whether a particular person may undertake specific activities in the United States. Treating these as interchangeable can lead to spending on the wrong solution. The three decisions should be coordinated, but each requires its own evidence and professional review.

Compare channel economics on the same basis

Consider an illustrative product sold to an end customer for USD 100. A distributor may buy it from the manufacturer for USD 65, with the manufacturer incurring USD 45 of product and delivery costs. The manufacturer's contribution is USD 20 before other overhead. Direct sales at USD 100 may leave USD 35 after the same USD 45 cost and USD 20 of local selling and fulfillment costs. Neither result alone determines the better model.

If direct operations also require USD 150,000 of additional annual fixed costs, the extra USD 15 contribution per unit would need 10,000 units to cover those incremental costs, assuming identical volumes and no other differences. Customer acquisition, returns, credit risk, inventory and management capacity can change the result. These numbers are hypothetical; the purpose is to compare a margin benefit with the resources needed to earn it.

Design a pilot that creates useful evidence

A pilot should answer specific questions: who buys, at what realized margin, how often they reorder and what service they expect. Agree reporting access with a distributor so that management can distinguish sales into the channel from sales to end customers. Clarify ownership of customer relationships and what happens to inventory, exclusivity and leads if the arrangement ends.

For direct operations, track the sales funnel through actual orders and collections. A large list of contacts is not proof of demand. Compare the cost and time to win an account with its repeat business and contribution. Use the findings to decide when staffing, premises or inventory commitments are justified.

Define the point for reconsidering the model

Agree review triggers before launch: sustained demand, service failures, margin pressure, working-capital requirements or the need for local management. A distributor may remain the right long-term choice, or the business may combine channels across products and territories. Avoid treating a local entity as an inevitable upgrade. The preferred model is the one that supports customer delivery, control and returns with manageable commitments.

A practical sequence

Start with demand, channel economics and a financial plan. Where suitable, use distribution to test the market, establish a local entity when direct operations justify it, and assess immigration requirements when hands-on management becomes necessary. Some businesses need a different sequence; the commercial facts should drive the choice.

How Lev Partners can help

Lev Partners supports U.S. market-entry planning, financial projections, entity-setup coordination and accounting coordination. We work alongside appropriate legal, tax and immigration professionals where specialist advice is required.

Explore U.S. Expansion Advisory or contact our team to discuss your market-entry plan.

Sources and further reading

• IRS — Limited liability companies

• U.S. Department of State — Treaty investor visas

• U.S. Department of State — Treaty countries

This article provides general information, not individual legal, tax or immigration advice.

Your U.S. services contact

Canan Kargacı — Director of U.S. Tax Compliance, Lev Partners. Canan is Lev’s service contact for U.S. accounting and tax-compliance coordination. She helps scope the company’s reporting, accounting and compliance needs and coordinate the relevant workstreams with the team.

Contact us today about your U.S. operations. Tell us about your entity, activities and current accounting or tax priorities through our contact form →.