Why invest in USA?
The United States is a popular destination for companies seeking their first foray into foreign markets.
Expanding to the USA gives you access to the world’s biggest economy, with an annual GDP of $20 trillion and the world’s third largest population.
With the high level of technological innovation and adoption, and a booming consumer market, the United States is a very attractive location for global expansion.
The United States is also the largest source of venture capital funding. Companies of all sizes and across all industries are flipping up to the United States to secure capital that will support their growth and development.
The laws and compliance regulations involved with expanding into the US market are complex and subject to change.
We offers foreign companies a simple, fast and cost-effective way to manage this entire process.
Our full suite of incorporation, hosting and compliance services ensures that your US expansion is streamlined, expertly handled and compliant with all legal, financial and governance requirements.
Due to COVID 19 travel restriction, Australia’s borders are closed. There is a ban on all overseas travel, unless travelling to New Zealand or if an exemption has been granted. Note: The outwards travel ban from Australia remains in place with an exemption being made for travel to and from New Zealand.
If you are thinking to invest or set a business subsidiary in the USA, how do you go about it?
How do you set up a company in the USA without being physically present in the country?
That’s almost near impossible to do so.
Even one day COVID 19 is over, there are things that you still need to prepare at your home country eg finding a local agent in the USA for filing and lodging required documents, evaluating the proposal and matters to consider before deciding how to invest in the USA.
Like most of the Australian companies, the biggest challenge is how do you find a good and reliable local agent can do the best service and the most competitive price? What reliance can you place to their service?
There are international companies with presence in many countries that can help you. A lot of times, you are paying top dollars for the same service we could offer.
Our company has the right fit for your business.
Locally in Australia, we are Public Practice Certified Practicing Accountants, a Registered Tax Agent and ASIC Agent.
In the USA, we have partners and liaison office that can help you incorporate your business.
Our key success and difference is you do not need to be present locally to incorporate your business in the USA.
Our USA Partners have the full capabilities include company incorporations and tax registrations, bank account openings, authorised officers and resident directors, core compliance and accountancy support, and CFO and registered office services.
USA Expansion Package
It is specifically designed for offshore companies expanding into the United States.
Package is a comprehensive range of services that includes the initial company incorporation, the provision of company officers, financial accounting, tax, payroll, HR agreements and salary packaging.
Our services includes
Incorporation Of US Subsidiary
Incorporation of subsidiary in any US state (Inc. or LLC). Includes complimentary Federal and State tax registrations.
Registration of your corporation or LLC in other States
Allowing for operation outside of the home State. Includes provision of a Registered Agent and registration for State Business Licences.
Companies expanding their operations across State lines may be subject to the new State’s registration or “foreign qualification” requirements.
It’s important for business owners, managers, and advisors to understand this requirement because there are penalties if the company doesn’t comply.
Domestic companies and foreign companies
A company, whether doing business as a corporation, LLC (limited liability company), or other statutory business entity, is a “domestic” company in one state—its formation state.
It is considered a “foreign” company in all other states. States have the power to prohibit foreign companies from doing business within their borders unless they comply with certain conditions the states think are necessary.
And every state has taken advantage of this power by enacting foreign qualification provisions in their state business entity laws.
What is foreign qualification?
Foreign qualification is the procedure by which a corporation, LLC, or other statutory business entity receives the authority to do business in a state other than its formation state. (It is also sometimes referred to as “registration”).
The company pays a fee and files a document with the state business entity filing office. The document is generally known as an application for authority.
Typically, it is a short form that asks for certain basic information about the company.
Once qualified, the company will be subject to a few other compliance requirements, like having to maintain a registered agent and file an annual report.
Bank Account Opening
Includes all procedures to open a bank account at a mid-tier bank in the USA without requiring visit in person.
Ongoing Compliance Services
Corporate & Virtual Office Services
Includes hosting your US subsidiary corporate office at our offices throughout the USA and acting as your mail forwarding center.
Appointment of Company Officers
Appointment Of Authorized Officer
The appointed Authorized Officers act as your corporation’s agent in the USA, to open bank accounts, register for sales tax nationwide, and support your business locally.
Appointment Of Resident Directors
To provide for an independent Board of Directors as required.
Appointment Of Registered Agent
Provision of a Registered Agent for the purpose of maintaining State registration or Business Licence. Includes the provision of all corporate regulatory compliance services.
Accounting & Tax Compliance Services
Taxes issues and tax compliance are two terms that often give individuals and companies anxiety.
Taxes can be complicated, and ensuring compliance can often be nerve-wracking.
Overall, tax compliance refers to taxpayers’ – whether individuals or businesses – decisions to comply with State, Federal, and international tax laws and regulations in a timely manner.
Taxes can become complicated by factors such as where you live and where you do business.
These factors determine which jurisdictions you have tax liabilities to and what laws are applicable.
Compounding the complexity of compliance is the fact that tax laws frequently change, on both a state and federal level.
So, the requirements you have faced previously may no longer apply.
This means that if you aren’t up to date in your knowledge of tax laws and recent changes, you may face inadvertent non-compliance.
And unfortunately, non-compliance can often mean facing stiff fines or penalties.
Tax Compliance Concerns for Businesses
In addition to personal tax compliance, businesses have many tax implications that they must factor in their processes to ensure compliance.
An overview of the primary tax components for companies includes:
Employer Identification Numbers (EIN)
Most companies need to obtain an employer identification number.
This number serves as your federal tax ID number, and having one ensures that you can comply with your business’s tax liability.
Obtaining an EIN should be one of the first steps a company takes after registering a business.
Income Tax
Like individuals, businesses are required to pay state and federal (and sometimes local) taxes on any income earned during the year.
The structure of your business will determine what tax laws apply when filing your income taxes, including how you report profits and losses.
Many businesses opt to pay their business income taxes quarterly to reduce the amount owed when filing their annual taxes.
While compliance can be maintained with either method, it is important to be consistent to avoid any unexpected anomalies in your accounting records.
Estimated Taxes
Estimated taxes is how businesses pay taxes on income that is not subject to withholding, such as income from self-employment, interest, and dividends. If you do not pay for this, you may risk non-compliance.
Self Employment Tax
If you have your own business, you must pay Social Security and Medicare taxes.
Otherwise, you won’t be covered under the Social Security system.
Employment Taxes
The federal government taxes businesses that manufacture or sell certain products.
If your business uses various types of equipment, facilities, or other products, you may need to pay an excise tax.
Property Taxes
Each state has a different definition of what property is taxable. Some states collect property tax from businesses in commercial real estate locations.
Others collect property tax for vehicles, computer equipment, and other business assets.
The amount of tax you pay is calculated by the total value of the property or on a certain percentage of the value.
Sales and Used Tax
States may tax the sale of goods and services. Check whether your business has to register to pay and/or collect sales tax in your state.
Exclusions in sales tax often include food, clothing, medicine, newspapers, and utilities.
States may also tax your business on the use of goods and services when sales tax has not been collected.
This typically applies to goods and services purchased outside of the state where you conduct business.
Charitable Donations
Businesses often receive a tax deduction for making charitable donations, and you can often deduct expenses related to the donation, such as travel and materials, when volunteering services.
While not reporting this information may not necessarily be considered non-compliant, it may not reduce your tax burden as it should.
Some businesses in unique circumstances, such as those that have received disaster assistance, may have additional tax compliance concerns.
Accounting & Tax Compliance Services
- Monthly Accounting
- Quarterly Financial Statements
- Income Tax Returns (Us Federal And Home State)
- Monthly Tax Review & Guidance
- Payroll
Bookkeeping and quarterly accounting. Includes development of a tax calendar for annual tax filing requirements and deadlines.
Annual Federal and Home State Income Tax Return filings.
Payroll services Includes payroll tax an 1099 reporting for up to four employees
Ensuring Compliance
It can be difficult to ensure compliance in today’s tax environment, with all the competing and sometimes contradictory requirements. However, if you consider all of the aspects of compliance, you should be in good shape to avoid any unnecessary fines, penalties, or audits.
The aspects of compliance include:
Deadlines:
The IRS has different due dates for filings, deposits, and payments – especially tax withholdings from employee paychecks.
It’s crucial that you understand the deadlines for all tax requirements to maintain compliance.
Accuracy:
Payments made to the IRS must be accurate. The price of underpaying can be incredibly high since the IRS is permitted to assess penalties plus interest when an underpayment occurs.
And to collect the full amount owed, the IRS can garnish wages, levy bank accounts, and place liens on property held by the company. Deliberate underpayment can even result in criminal prosecution.
Documents and Record-Keeping:
Employers must be diligent with the documents they collect from any contractors they do business with and any new employees.
Similarly, They must maintain accurate records to ensure that the correct information is provided to the IRS. These records are essential if the business goes through an audit or has a tax problem.
They are often the documents that may be used to determine whether an error is deliberate or intentional.
Filing:
The annual tax filing date is April 15 to ensure compliance. However, many businesses may need an extension, and to receive one, they must fill out the correct forms for an extension request.
Missing this one step can result in non-compliance and major fines.
This overview outlines just how complex tax compliance can be for businesses. In many instances, businesses opt to work with a consulting accounting specialist to ensure that they achieve and maintain compliance.
Up And Running In The Usa In Just 2 – 3 Weeks
If you think you are ready, we are ready.
Our streamlined process ensures that your US corporation is fully operational within two weeks of providing us with all necessary information
Day 1 –
Project is launched, and all incorporation information is provided. Your incorporation documents are filed in your Home State.
Week 1 –
Your corporation is officially registered. Your registrations with the IRS are finalized, and the Federal Employer Identification Number (FEIN) is issued.
Week 2 – 3
Your applications for State Registration and Business Licence are filed for your Corporate Office.
Your business bank account is opened. You are ready to launch your operations!
(Note : The ongoing COVID 19 will have a timing impact to the State Registration)
Your Local Representative In The USA.
Our US partners have a highly qualified and experienced team of professionals based throughout the USA who act as Authorized Officers or Resident Directors.
These appointees act as agents for your business in US corporations, representing you in performing any function that requires a physical presence in the USA.
For example, the Authorized Officers can:
– Open bank accounts for your US company
– Sign documents in the US on behalf of your US company, including commercial contracts, lease
agreements, and employment agreements
– Assist with registration for sales tax in states outside your Home State
– Liaise with regulatory authorities in the US
– Provide strategic and practical advice on your US business plans
– Sit on the board of your US company as an independent director