Are you thinking of setting up a business in the US?

Are you buying a business in the US?

Are you planning a joint venture in the US?

The United States has one the most complicated tax systems in the world and, coupled with the UK tax implications of doing business in the US, tax planning can become bewildering.

What will you need to consider?

• the type of US entity to use – a branch of a UK company; a US corporation (Inc. or Ltd.); or a US limited liability company (LLC) – The choice can affect both US and UK tax rates
• State and local taxes
• how to finance the US business to optimise the tax benefits from your financing costs
• reducing the cost of employee transfers and secondments
• transfer pricing of goods and services supplied from your UK company to your US business (or vice versa)
• planning to get the most tax benefit from any losses from the US venture
• how to get the profits back to the UK without paying unnecessary tax
• tax minimisation on an eventual sale of the US business.

How can True Partners Consulting (UK) LLP help?

Some people make the mistake of taking advice only in the US. Good local advice is important, but the key to reducing tax problems and tax costs is to take an overview of how the two countries’ tax systems fit together.

With a tax treaty between the UK and the US in place, existing structures will also need reviewing.

Our UK tax professionals are experienced in both countries’ tax rules and we work closely with our US colleagues to ease the tax burden on both sides of the Atlantic.