International Tax Tips for Starting a Business Abroad
December 13, 2021
One of the first services you should consult, whether starting a business abroad or expanding into new markets, is an experienced international accountant. Your tax strategy can make a substantial difference in your revenue and the amount of stress you endure during tax season. While you may already have an accountant for your organization, you need more specialized expertise when you expand into international markets. A professional with international tax services knows the specific regulations and requirements for U.S. residents operating businesses abroad. You won’t be caught unprepared when you file during tax season with professional guidance.
Decide the best country to establish your business.
If you don’t have a specific country in mind where you want to move or operate your business, consider doing a little research into the tax benefits of one nation over another. Every country has different regulations for both personal and corporate tax filing. Consider the tax implications as well as market viability for your expansion or launch.
Specialists who provide international tax services will offer recommendations and insight into the countries you’re considering or help with structuring your business for optimal tax benefits.
Get an expert opinion on your corporate structure.
The structure of your organization makes a big difference during tax season. When starting a business abroad, you have to consider the tax regulations of the foreign country and the United States.
Limited liability companies are the preferred structure for many businesses because you can avoid corporate tax filing. However, filing your LLC through your personal taxes requires additional paperwork for international companies. International tax services include ensuring you file the correct forms for your corporate organization.
Report offshore bank accounts.
Maintaining compliance means knowing and adhering to IRS regulations, regardless of the country where you’re operating your new business. Rather than stress about making sure you know all the requirements for reporting, just work with an accountant who provides international tax services.
Any business accounts with more than $10 thousand at any point of the year must be reported by the April 15 IRS deadline. An international accountant will keep track of your accounts and report as required to maintain compliance.
Use exclusions to your benefit.
The IRS has regulations in place to protect ex-pats from dual taxation if you’re living in a foreign country while operating your business. Especially for self-employed individuals whose business is their entire income, it’s crucial to meet requirements for exclusions to protect yourself against excessive taxation.
Depending on your income and situation, you may also be able to include housing costs in your deductions if you live outside the United States.
Understand your potential expense deductions.
One benefit of working with an accountant who provides international tax services is advisory. They can offer insight about the expenses you can claim as deductions, even as a business abroad. With strategic spending, you can decrease your tax obligation while providing your organization with what it needs to stay operational. There are regulations regarding what can be claimed as a dedication.
International tax services will reduce your tax obligation and eliminate stress during tax season. A qualified accountant will ensure your company files the necessary forms to take advantage of all the available exemptions.
Accountants Without Borders provides international tax services for U.S. residents starting businesses abroad.
Javier Amezcua founded Accountants Without Borders to provide U.S. residents with straightforward tax services to simplify running an international business. We work to reduce your tax burden in sustainable and strategic ways. Accountants Without Borders provides insights and guidance, whether you’re expanding an existing company into international markets or starting a new business abroad.
We’re San Diego-based accountants who collaborate with clients to help them lower their tax burden with creative solutions to old problems. Have a business abroad? Contact us for expert international tax services.