Nicole Suk, leader of Windham Brannon’s international tax practice, was recently featured in a podcast episode of The Bottom Line, which is produced by financial advisory firm Alexander Spencer in Australia. In her podcast conversation with Sevan Tuna, Managing Director of Alexander Spencer, Nicole discussed key considerations for businesses looking to expand their geographic footprint to the United States. Some key highlights from the podcast episode include the following:
- Nicole’s Personal Experiences Living Abroad – Nicole spoke to her experiences as a child of a U.S. State Department parent and the opportunity to live in many different countries throughout her childhood. Nicole has lived in Russia, Austria, Saudi Arabia and Trinidad and graduated high school in Munich, Germany before coming to the Georgia Institute of Technology to pursue her undergraduate degree.
- What Foreign Businesses Should Know About Expanding to the United States – Nicole mentioned that businesses that come to the United States to do business should have intentions of staying due to the regulatory landscape, particularly in the area of tax. Doing business with U.S. customers means you may consider establishing a U.S. subsidiary with the help of an attorney, which can prevent your foreign entity holistically subject to U.S. tax law. Delaware is a popular state to establish a U.S. subsidiary for foreign entities because among other benefits, the state does not require an entity to have a physical presence there in order to do business.
- How to Navigate Complex Legal and Regulatory Landscape – The current U.S. federal corporate tax rate is 21 percent, but state income tax rates will vary from state to state and effectively impact how you remit tax when providing goods or services to U.S. customers. For example, Wyoming does not have a state income tax rate for corporations, and Florida does not have a state income tax for individuals. Essentially, you must do your research on state income tax laws in places you hope to do business. While the United States does not have a value-added tax (VAT), sales tax also varies from state to state.
Windham Brannon Can Help
Windham Brannon’s international tax practice serves clients in 76 countries, helping clients grow their businesses and comply with domestic and international tax law. For more information about doing business in the United States, contact your advisor or reach out to Nicole Suk.
