By Jie Zhu, International Tax Partner at Petrinovich Pugh & Company, LLP By Jie Zhu, International Tax Partner at Petrinovich Pugh & Company, LLP | December 21, 2021 | Feature Sponsored
Doing business in the U.S. brings with it a lot of benefits. The American business culture encourages innovation and entrepreneurship and provides ample opportunities for making investments or being invested. Therefore, lots of businesses come to the U.S. to expand their footprint in the American market and gain brand recognition, to look for investment opportunities, to seek investors and/or to attract talent. The challenges can come from not understanding the culture and social norms in the U.S., from managing teams internationally and with various cultural backgrounds, and from navigating through the complex legal and tax systems.
So, what are the most important things to know before getting started? First, it’s critical to understand how to structure a business in the U.S. Different structures not only impact how the businesses will be taxed, but also impact how the foreign or U.S. owners will be taxed. Post-pandemic taxes are also something companies planning to do business in the U.S. need to consider. 136 countries have agreed to a global minimum tax on corporations as part of a broader agreement to overhaul international tax rules, which is definitely something to keep an eye on. If enacted by all the countries in agreement, the global minimum tax would help to end tax avoidance practices in low-tax jurisdictions. The Build Back Better Act – recently passed in the House and awaiting Senate review, contains certain international tax provisions that will also impact businesses’ global taxation considerations.
Accounting firms like Petrinovich Pugh & Company, LLP (PP&Co) are here to help businesses and their owners and employees navigate through the U.S. tax maze. We assist businesses with structure planning, financial accounting, mergers and acquisitions, and tax planning and compliance. We work with businesses of all sizes and from various countries and regions. As an active member of PrimeGlobal, an award-winning international accounting association, PP&Co is in a unique position to assist clients with International issues. With over 300 firms in more than 100 countries, PrimeGlobal provides the necessary resources to serve clients wherever they choose to do business.
Our goal is to help make the experience of starting operations in the U.S. a positive one. PP&Co can be a resource for any company considering doing business in the U.S. and can assist with identifying, and coordinating among, professionals and other service providers (attorneys, bankers, etc.).
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