How international tax consultants can help you expand your business to the U.S.
September 16, 2021
If your business isn’t operating in the United States, you’re missing out on a massive market of hundreds of millions of potential customers for your products or services. When you expand into any country’s market, though, you may be anticipating a slew of unknown or unexpected issues to complicate the process, with tax concerns being one of the more significant ones. You can ease the trouble of navigating United States taxes with the help of an expert, experienced team of international tax consultants.
Accountants Without Borders provides this exact kind of assistance to a multitude of companies seeking to expand their operations into the U.S., and because of this experience, we thoroughly understand many of the details that may make the process seem confusing or complex. There are plenty of good reasons to take on that challenge, though, and some important details to know that will help you strategize for your entry into the North American market. Read on to learn more about these points, as well as how we can help make your expansion an easier, more successful one.
Reasons to expand into the United States
As mentioned before, access to the U.S. market allows your company to reach a huge number of new consumers and businesses. Obviously, this can substantially bolster your overall profits, but other factors play a role in this benefit, too. United States companies prefer, and have an easier time, doing business with other entities within the U.S., particularly when dealing with larger companies.
Having a presence in the United States also gives foreign companies access to American investment capital. As with consumer spending, this capital can provide funding for further expansion of your business operations, new product or service offerings across your organization, and a generally improved ability to increase the value your business has to offer.
How are foreign companies taxed?
The biggest complicating factors of establishing an American presence for your company come in the form of tax policies. The previous point about attracting U.S. investment capital, for example, is made more difficult by GILTI (Global Intangible Low-Taxed Income). This policy requires any foreign entity acquired by a U.S. company to pay taxes on its income, even if that company doesn’t pay out any dividends.
For U.S.-based subsidiaries of foreign-based multinational corporations, other policies are in place with the primary intent of preventing those companies from shifting their profits to lower-tax countries in order to avoid paying U.S. taxes on those profits. According to the Tax Policy Center, the Base Erosion Alternative Tax, or BEAT, fulfills this role by imposing a 10.5% tax on certain payments that could typically be listed as deductible business costs.
How Accountants Without Borders can help manage your tax burden
By providing you with our tax expertise, helping you find ways to cut costs, advising you on business solutions to consider for the local markets you’ll be operating in, exploring ways for your company to increase engagement with American consumers, and sharing time management techniques to ensure you begin your U.S, operations on schedule, Accountants Without Borders has what it takes to guide you toward a smooth start on U.S. soil.
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