Having seen and helped many international companies come to the US, there are certain things that seem to keep coming up as a struggle. The challenge is a result of the fact that doing business in the US is COMPLICATED. Seemingly much more so than Australia, NZ, EU, UK, Singapore, or Hong Kong.
Many times business founders are just looking for information to get educated. Many people take matters into their own hands and form their own entity using Legal Zoom or something similar. Others apply for the Federal ID numbers or other applicable numbers, and in many instances get the wrong one.
By doing business in the "self serve" model, I have seen many, many mistakes. One area frequently overlooked is the decisions impacting the type of company formed. Choosing the wrong path results in your being taxed as a type of entity in the US that makes compliance even more expensive. The choices made can even result in individuals or their trusts being subject to US filing requirements.
There are 5 relatively consistent areas where you should seek counsel from a professional before you expand to the United States. There are tons of resources out there and being penny wise and pound foolish could cost you tens of thousands of dollars in the long run.
Over the course of the next several months we will publish subsequent blogs with more detail on the following topics:
These topics may sound straight forward, but in many cases are more complex than you might think. The laws on if and how you will be able to operate, ability to open a US bank as a foreign company, running your back office, and getting and staying compliant in the US are all things you’ll want to think through before you start negotiating a lease for space, trying to hire your first employee, or start selling your products or services here.
Please subscribe to our blog to receive notifications as we post more information on these important topics. We will also be conducting webinars and bringing in subject experts to participate as we continue to provide information and resources regarding these challenges in more detail.
For additional information on expanding to the US please take a look at our Guide To Expanding To the US.