Our firm has over 20 years’ experience in assisting small to medium international business, coming to US.

There are two categories of business broadly:

  • Foreign corporation coming to US and operating business
  • Foreign investment in US real estate

Each has different tax issues and types of service required.

Service for Foreign corporation coming to US and operating business

Initial setting up stage:

Usually, foreign business sends representative to investigate business opportunity and preferred location in US.

Our service may include

  • Business purchase assistance
  • Consulting on setting up legal entity like a corporation or LLC(limited liability company)
  • Assist registration with Federal, State and Local government
  • Explain US labor rules and insurance requirement

Ongoing operation:

Depending on business’ personnel size, our service may include

  • Setting up accounting system
  • Assist payroll processing & reporting
  • Filing tax returns with Federal, State and Local government
  • Consult on ongoing business issues
  • Individual tax return filing for employee from foreign countries

Special tax issues:

There are specific tax issues related to business owned by foreign corporation in US.

  • Transfer pricing issue: when US sub does transaction with foreign parent company, the deal should me in arm’s length transaction.
  • FACTA: employee from foreign countries is subject to foreign asset reporting with individual tax return.
  • Multi-state business and sales tax: if US business operates in various states in US, it may be subject to sales tax withholding and reporting requirement for many states. Each state rules vary.

Foreign investment in US real estate as an LLC or individual

Some of the issues mentioned above also apply to foreign investment in US real estates. Many investments are formed as an LLC due to flexibility.

Our service may include

  • initial investment analysis: different types of properties have unique characters.
  • Preparing LLC’s tax return. LLC usually files a partnership tax returns.
  • Planning for sales: The sale of a US real estate interest by a foreign person may be subject to the FIRPTA withholding: usually 15% of sales price.