One major challenge that corporations, CEOs and business owners face is complying with the US GAAP (Generally Accepted Accounting Principles) and local tax laws. Since these financial accounting standards and tax laws vary by state, it is important to discuss them with a subject matter expert. Certified Public Accountants (CPAs) are board-certified professionals who have extensive understanding and knowledge of the US and Foreign tax laws through education and experience.
A look at US Accounting Requirements
In the 21st-century, globalization has brought individuals, industries, and cultures together in more ways than anyone could have ever imagined before. We see individuals and companies move from one end of the world to another very easily for better lives and business advancements. With such migration come opportunities and challenges.
Some of the key decisions foreign corporations seeking to expand their businesses to the US have to consider are deciding the type of entity to register in the US, the US reporting cut-off dates (determining the correct the tax period), how and which type of tax licenses are required to operate in the US, understanding the US trade or business concept, the tax treaties between the two countries to avoid double taxation, the withholding laws for US employees as well as foreign employees working in the US, complying with informational returns, and proper filing requirements for foreign-owned US subsidiaries and branches.
On top of these, right now there are extraordinary developments that require immediate attention. In response to the Covid-19 pandemic, major legislative changes were released in the US:
Tax filing dates have been extended for everyone to July 15, 2020.
The government, along with the Department of Treasury, has established the Paycheck Protection Program (PPP) with loans that can be forgiven up to 100%.
The Small Business Administration (SBA) is providing loans to qualified businesses with interest rates as low as 3.75% for up to 30 years.
SBA has announced loan payment deferrals for up to 12 months for qualified businesses
Viraj Patel is an experienced CPA, and for years he has supported American and Foreign Owned Companies as a tax advisor. His clients include companies from Europe, India, and Great Britain alike.
If you like to contact this expert, please email him at firstname.lastname@example.org
Understanding local rules and regulations, following financial reporting guidelines given by governing agencies, complying with local tax laws, filing timely reports and returns to the authorities, and being able to react quickly to sudden changes are of crucial importance for any business entity. Getting the right support from the beginning will avoid a lot of headaches and problems later on. This is why it is so important to have a local expert on speed dial, who can assist a company with setting up their location in the US correctly from stage one. As the saying goes, "The foundation must be strong, to build a tall empire." In current times one might add “...and stay on top of events”.