US Expansion – Opportunities and Challenges
Following the game-changing innovations and global digital revolution of the last 20 years, companies around the world now have unprecedented opportunities to reach new markets. The United States remains one of the most attractive markets for any company that wants to fuel its global growth, have access to investment capital and increase profits. The US is also a highly legalistic society with complex tax laws and regulations. Emerging technologies and the ways that consumers around the world access products and services continue to create grey areas in tax laws during this time of rapid progress.
Check our events page for upcoming US expansion advice seminars.
Cross-border global markets
The advancement of technology has created markets without borders and businesses of all sizes have the ability to use cloud-based platforms and apps to transact and engage with people anywhere in the world. Companies can quickly and easily mass distribute products and online services, transacted with only the tap of a touchscreen.
New technologies, new business models
Software as a service (SaaS), infrastructure as a service (IaaS) and platform as a service (PaaS) are some of the commonly offered cloud-based services. With cloud-based software platforms, the user usually does not have rights, possession or interest to the software. Instead, they pay to have access to the application itself or to products which can be downloaded or streamed from the platform. This poses a challenge in determining the character of income and whether a transaction results in a sale, lease or provision of services.
Proudly supporting start-ups and entrepreneurs
We are proud to actively support the start-up community. Passionate entrepreneurs often look to the United States as a key place to fuel their next stage of growth.
We advise entrepreneurs on how to navigate the complex US tax landscape by gaining an understanding of their expansion goals – whether that involves selling products and services to US customers from abroad, opening offices on the ground, or obtaining US investment.
Smart structures for all 50 states
While keeping in mind the multi-state landscape of the US market, we develop a considered tax structure that will:
- Lower tax exposure to the parent company
- Minimize the group’s overall tax liability
- Determine US Effectively Connected Income (ECI) and sources of income
- Assess state tax liability
- Analyze permanent establishment position
Our team mentors at tech events over the world. For help understanding your tax responsibilities from the start, contact Nora Rothrock.
Did you Know?
Fact SevenThanks to FATCA banks must disclose their American account holders to the IRS or local tax authority.
Fact SixThe IRS is actively looking for non compliant US persons.
Fact FiveIt takes an average of 16 hours to do IRS Form 1040.
Fact FourThere are over 500 IRS tax forms.
Fact ThreeSince 1916, illegal income has been taxable.
Fact TwoUS persons must file tax returns no matter where they live and work.
Text One7 million Americans abroad
only 500,000 compliant