NEWS

International / Cross-Border Services

Tanton Grubman works with multiple accounting and law firms in the UK and throughout Europe to act as liaison for their cross-border clientele. The members of our firm have over 50 years of expertise dealing with international matters and understand the nuances of multinational business dealings or as we refer to the “translation” of doing business in the U.S.

Below is a checklist of inbound issues that should be addressed:

  • Choice of entity and ownership structure.
  • State of incorporation
  • State(s) to obtain Certificate of Authority to do business
  • Register for federal identification number
  • Determine if products/services are subject to state sales tax
  • Register for state payroll, sales tax and income tax
  • Review workers compensation insurance requirements
  • Review general insurance needs
  • Engage registered agent for state representation
  • Engage payroll services company for US payroll
  • Determine fringe and welfare benefits to offer U.S. employees
  • Consider employee vs. independent contractor status-federal/state rules are different
  • Determine Nexus i.e., presence in each state, physical and economic
  • Open bank account with federal identification number and state formation document
  • Determine if business licenses are needed
  • Office location
  • E-commerce concerns
  • Work visas for foreigners
  • Help in establishing transfer pricing policy for intercompany transactions
  • Technology transfer licenses
  • Level of U.S. business presence
  • Determine corporate officers
  • Determine Board of directors
  • Determine debt vs. equity am

Tanton Grubman can assist you in various tax compliance and related financial, business and tax issues.

Tax Compliance

Annual and quarterly tax returns for a start-up company which include federal, state and any foreign reporting. State reporting is sometime a puzzlement to Foreign Business Owners. State and local tax (SALT) issues are at the forefront of todays business issues, including questions as to NEXUS and revenue sourcing matters. Understanding the difference between VAT and Sales Tax is a new concept to most foreign businessmen. We can and are able to assist in determining where and when reporting is required and prepare tax filing when needed.

Turn-key solution services include:

  • Incorporate/formation (through our service company)
  • Authority to do business, in one other state
  • Federal identification number
  • One State registration
  • By-laws and operating agreement
  • Minutes/Resolution – initial meeting documentation
  • Stock book and share issuance
  • Employment issues (including a referral network of immigration experts)
  • Banking assistance

Statutory Accounts Preparation

We will assist in the preparation of financial statements when necessary with US GAAP and IFRS reporting requirements including management accounts for consolidation purposes.

Sales Tax Compliance

As discussed above, SALT issues relating to Revenue Sourcing due to the growth of e commerce activities and recent court decisions, compliance with Sales Tax is a complex issue. We will assist in registration in various jurisdictions. We will review where titles of goods and services are delivered and determine the appropriate sales tax rates by reviewing the sales activity reports.

We will assist in the filing of periodic sales and use tax returns as required. We will advise you timely, so checks can be prepared for any payments needed to the taxing authorities.

Create a US tax calendar for the company so that tax filings and compliance deadlines are known every month. This would include all federal and state tax obligations.

Transfer Pricing and Duty Implications

The transfer pricing is another area we are able to provide expertise. Taxing authorities both in the US and around the world closely review these arrangements to determine allocation of taxable income is appropriate. We will provide assistance as follows:

  • Review and running of sales comparison of US pricing and offer suggestions to make sure the pricing is arm-length. This would include running of sales comparables.
  • Help with the drafting of the management agreements including royalty agreements for intellectual property between the home office and the US subsidiary of how intercompany charges will be made and when paid.
  • Finally review the documentation to support the charges either from the US sub to the parent or the other way.

These arrangements are important and require planning for both current and long - term situations. The need to review and update is an important factor.

Other

Special projects are quoted using our standard billing rates. Periodic questions not requiring analysis or research generally are no charge. We can provide you with the information required for U.S. tax preparation under separate cover which would include items such as.

  • Employees tax including compliance, allocations and sourcing issues
  • Intercompany charges, benefits and equalization
  • Analysis of perquisites, taxes, meals, compensation etc.
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