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Foreign (non-USA) Companies and Individuals
In today's world, the old cliché "it's a small world" has never been truer. The introduction of the internet has not only spurred global communication, it has also eased barriers for international trade. While many obstacles for cross-border sales and investments have been significantly reduced, a new set of challenges have risen.
The International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are impactful on how companies should report their global financial position. Tax laws in multiple jurisdictions must be addressed. In the USA, we see many non-USA companies and individuals that are unsure what the federal (IRS) and state tax rules are, and how they apply to their circumstances. Day to day operations may take precedence and the confusion of dealing with multiple currencies and multiple laws can blur your overall financial picture.
In today's complex and fast paced world, it is difficult to keep pace with changes in the way business is conducted. Many times, tax laws are geared to traditional, brick and mortar businesses and provide little or no clarity in the world of e-commerce. Some of the answers are not simple, and are ever evolving.
If you are struggling with any of the following questions, we can help you clear away the confusion.
- Will the non-USA person or entity be subject to tax in the USA – what is "doing business?"
- Are there tax treaties in place to help define the taxing jurisdiction?
- If the non-USA resident party is subject to federal tax in the USA, will state level tax also apply?
- Which states will apply tax and what type – income; franchise; sales & use; property; other?
- What entity type – C Corporation; Limited Liability Company; Partnership - is best for you?
- What filing requirements must your company comply with?
- Do penalties exist for failing to meet the requirements?
- If you are required to file, do you need the Form 1120F, 1040NR, 5472 or 1042?
Some of our accounting and tax services include:
- Business start-up services
- Entity selection and structural issues
- Tax return compliance
- Bank accounts and bank reconciliation
- Financial statement preparation
- Tax audit defense
Our experience includes working with USA subsidiaries of parent organizations based in countries such as the UK, France, Netherlands, Italy, Brazil, Germany, India, Sweden, Thailand, Australia and Japan.
Click here to contact Gunnip & Company for general information regarding our experience with Foreign (non-USA) companies doing business in the USA and how we can help you.
Experience is the Difference®