We assist clients with US company establishments and advice on the choice of an appropriate US state in which to establish an entity.
The type of entity chosen should always take account of the tax implications which arise.
If you are a non-citizen, there are many decisions to be made and our advisors have the experience to help you get your enterprise off to the right start.
CHOOSING AN ENTITY
Your first step is to select the best entity structure for your business. Each entity type offers benefits to your business in terms of operation and taxation. Non-residents follow the same steps to set up business entities, but also need to consider getting visas, opening bank accounts, and international tax laws.
PARTNERSHIP
A partnership structure includes two or more people who agree to share the profits and losses of the business. Partnerships are treated as “pass-through” entities, which means that all profits pass through the business to the partners, who in turn pay tax on those profits as personal income. Each partner is liable for any losses incurred by the business, which is one of the drawbacks to this particular structure.
CORPORATION
Corporations are completely separate from the people who own the business. Corporations, also referred to as C-corporations, are taxed and held liable for their profits, losses, and actions. In addition to corporate taxation on profits, any dividends paid to shareholders are also taxed at the personal level. This potential double taxation is sometimes considered a drawback.
LLC
An LLC is an option similar to a partnership in that profits are passed through to the owner or owners, but the owners are protected from personal liability for the business.
S-CORPORATION
There is an alternative corporation structure called an S-corporation, which can elect to be taxed as either a C-corporation or an LLC.
CHOOSE THE BEST OPTION FOR YOUR BUSINESS
Based on the goals you have for your business and your personal situation, we will provide advice and guidance on the best entity type for your business.
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CHOOSING A STATE
Some US states have a reputation for being more business friendly than others. Delaware, Nevada, and Wyoming often come to mind. Utah also frequently ranks highly in lists of the best states for business.
Each business, and business owner, has different needs and therefore careful consideration is necessary.
Some of the points to think about while making this decision include:
- Taxes
- Government economic incentives
- Minimum wage requirements and the local labor market
- Your plans for future growth and development
LICENSES AND VISAS
If you are a non-citizen, you will need to take care of other details to establish your business in the US.
While it is possible to establish and run a US based business from outside of the country, depending on the legal entity structure you choose and the level of involvement in the day to day running of the business, you may need to attain a visa to work in the US.
The Department of Homeland Security publishes a list of visas and guidance on which visa is the most appropriate in a given situation.
SET UP YOUR BUSINESS RIGHT FROM THE START
We will help you navigate the often complex US landscape and provide practical advice so you can make informed decisions when setting up your business in the US.
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ADDITIONAL SERVICES WE CAN HELP YOU WITH
TAX PREPARATION SERVICES
Our team provide preparation and filing services for your income tax including Forms 1120, 1099, 1065 and State tax returns. We also assist with your W-2 and Schedule K-1 Forms and lodgement extension requests.
TAX ADVISORY
Tax issues involve structuring, tax planning, payroll, accounts, income tax, state taxes, federal taxes, international taxes, succession planning and more. We provide proactive, tailored tax advisory services to really help your business grow.
USA OUTBOUND TRANSACTIONS
When your business invests overseas you need a tax team with a global perspective and experience in international taxation. Our team has a solid understanding of this complex area and connections with global partners that provide local expertise.
LET US GET YOUR BUSINESS STARTED
Contact us now for an in-depth assessment of your business needs. We will help you understand your options and complete the essential forms and filing requirements to get your entity setup.
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NEWS AND UPDATES
Podcast: How To Successfully Scale Your Business Overseas
26th Apr 2024
CST Tax Advisors
Our CST Managing Director, Boon Tan joins MoneyFM 893 Breakfast Show in Singapore with host Audrey Siek to discuss "How to Successfully Scale your Business Overseas" Delve into the key strategies...
Tax Implications Of 401(k) And IRA Plans For Australian Tax Residents
9th Apr 2024
Matthew Marcarian
Retirement savings, especially when managing finances across international borders, can be complex If you live in Australia, but hold plans in the USA, you need to understand the tax implications of...
UK Budget 2024 – Non-UK Domiciled Tax Rules To Be Scrapped
27th Mar 2024
Richard Feakins
The current remittance basis tax regime will be replaced by a residence based regime from 6 April 2025 Foreign Income And Gains Existing non domiciled individuals who have been resident in the...