PKF will shape your market entry
Due to the sheer size of the country, which has a population of over 320 million, market entry in the USA is associated with extraordinary opportunities for growth and success, but also with risks. German companies that are already doing business or want to do business in the USA have to master a multitude of challenges. However, risks can be minimized through thorough planning and the support of expert consultants. We regularly see the greatest need for advice in the following tax-related areas:
- Choosing the right legal entity: The choice of legal entity in the USA and Germany is essential to minimize the overall tax burden.
- Choice of location: Due to the high competition of states, counties and municipalities for the settlement of companies, careful planning and project implementation is indispensable. Subsidies are negotiable and can include the free provision of land for settlement if negotiations are skillfully conducted.
- Fulfilment of tax registration and declaration obligations: 50 federal states basically mean 50 different legal systems with rules and regulations on individual and corporate income tax as well as sales & use tax. In addition, there may be different property tax regulations and companies and individuals have to account for federal tax. It is possible that a corporation must submit 51 income tax returns per year.
- Transfer Pricing: Transfer pricing issues are becoming increasingly important due to the large number of transactions between parent companies and subsidiaries and the associated opportunities for profit transfer. Tax authorities are increasingly requesting transfer pricing documentations as part of tax audits.
- Global Mobility: Relocating employees plays a role from day one in building the business in the USA. The topics to be dealt with range from obtaining residence and work permits to processing salary payments.
Please do not hesitate to contact us if you have any questions and we will be happy to give you an initial non-binding consultation. All contact persons from Germany can be found here.
Further contact persons in the USA: