Business Insights
US Taxes
There are many factors a company needs to consider when expanding into the United States. When moving into the US the first thing to examine is what kind of company you want to set up. Then a US State needs to be chosen, as taxes vary depending on the state. US tax rates are extremely high with an expectation to pay Federal tax (@12%). Hiring a registered agent service is also advisable, a company that will execute legal filling. Additionally, an employer identification number is necessary, which becomes the tax ID for the business.
Visa Requirements
Visa requirements are also an essential of setting up a business in the States. There are many available options as set out by USA Corporate Services Inc.,
- The B1 Visa is a short term business visa. It lasts for 6 months. Performing work is not permitted. This visa can be used to liaise with clients.
- E1 is a treaty trader visa. Can be used to set up a business to trade with the natives home country. A temporary visa, which can be renewed until the business ceases to exist.
- E2 is a treaty investor visa. Allows persons to come to the US to set up a business. Temporary visa, can be renewed while the business is in operation.
- EB5, is the Investor Green Card program. This requires an investment of $500k-$1 million and must hire at least 10 US residents within two years and survive more than 5 years. This usually leads to permanent residence after probation.
L1 is an intercompany transfer visa, permitting the holder to transfer from a foreign company to a US company subject to restrictions. This is a one year visa, with up to three extensions.
Banking
Next, the company needs to open a bank account, this is said to be the most complicated part of the process. Once the LLC has been formed, the business bank account should be opened. If the Irish bank you already have an account with has a branch in the US, this can make the process easier. A meeting should be held to discuss such a situation.
Anti-corruption legislation
Additionally, a new development companies need to consider are the new compliance regulations. This is Anti-corruption legislation called the Corporate Transparency Act and was enacted into law on 1 January 2021 as part of the US’s larger National Defence Authorisation Act. This will require certain corporations and LLCs to file beneficial ownership information to the US Department of Treasury’s Financial Enforcement Network. Companies should be aware this will eliminate anonymously owned and controlled legal entities in the US over a two-year implementation period. If companies fail to comply, they will face legal charges and fines.
Covid-19
Finally, it is essential to observe COVID regulations in the workplace. This is inclusive of legalities and employee-related regulation. Issues such as raising the minimum wage, retirement plans, joint employment, worker classification and healthcare reform remain subject to pending change. Similarly to Ireland, working from home is prominent and remains to be reviewed concerning legal and tax issues.
