Houston Attorneys Guiding Business Expansion To The U.S. And Legal Structure
Texas has a dynamic business culture that makes it a global powerhouse. A business based abroad that seeks to expand into Texas and the United States needs guidance to navigate legal and tax requirements.
At Stephenson Fournier, our esteemed business lawyers advise companies poised for expansion into the U.S., whether through an acquisition or organic growth. We have a proven track record of helping offshore businesses expand to the United States. We also provide companies with tailored strategies for addressing tax issues related to such expansion.
Our Comprehensive Texas Business Expansion Services
Our business and tax planning attorneys combine more than 50 years of experience practicing law for domestic and international clients. Our work includes advice on:
- Acquiring existing businesses
- Establishing a startup
- Establishing satellite operations
- Forming U.S. entities to serve as local distributors
- Forming U.S.-based service providers for foreign affiliates
Our reach extends beyond Canada, Mexico and Latin America. We currently have clients on every continent except Antarctica.
Factoring Tax Considerations Into Entity Selection
The limited liability company (LLC) is a widely used business structure in the United States. However, international expansions often require a different structure based on domestic and foreign tax considerations and other concerns.
Some of the factors that should be taken into account when deciding on the organizational structure are:
- Potential tax implications
- International tax rules and treaties
- The nature and scope of the business
- Particulars regarding ownership of the business
- The nature of the industry in which the business operates
Often, the optimal structure for addressing tax issues and other key needs involves the use of several entities.
Resolving The Risks Facing Foreign Businesses In The U.S.
Proactive risk management is one of the fundamental duties of your counsel. Our team draws from its considerable knowledge base to identify and explain every source of risk. A few common examples include:
- Business taxes: Planning for the spectrum of federal, state and local taxes can be a challenge. There are many types of taxes and levies a business might encounter. The U.S. has no value-added tax, but state and local jurisdictions impose sales taxes that are similar.
- State and federal regulations: The federal and state systems of government add a complexity that many foreign business owners find unfamiliar. Businesses must comply with the requirements imposed by applicable jurisdictions.
- Business permitting requirements: Although the U.S. has lighter business permitting requirements than many jurisdictions, it is critical to identify all required permits and remain aware of applicable regulatory requirements.
- Financing: Obtaining financing or raising equity capital requires an understanding of applicable laws and market practices to avoid missteps.
- Business contracts: Contracts for business transactions, contracts with customers and suppliers, and all real estate transaction documents should also generally be prepared or reviewed by counsel.
- Employment law: The U.S. has different employment laws from those of many other countries. The laws vary from state to state. It is important, for example, for an employer here to include counsel when developing employee policies, noncompetition and restrictive covenants, and employment agreements.
Fortunately, our business law and tax planning lawyers are highly capable of addressing all of these forms of risk.
What To Know About The Business Climate Of Texas
On some lists, Texas is the top-ranking state to operate a business. Much of the world is familiar with our state as a hub for oil and gas and for space exploration. Lesser-known are the world-class agglomerations of companies focused on:
- Medical innovations
- Chemicals
- Technology
- Banking and finance
- Shipping
- Transportation and logistics
If Texas were a country, it would have the 11th-largest economy in the world. Only California, among U.S. states, is larger. Additionally, there is no state-level personal income tax on Texas residents, making it one of only seven states without such a tax.
These characteristics help our state’s businesses to thrive. As Texas business lawyers, we are passionate about helping your company expand to Texas so it can thrive, too.
Talk With A Texas Business Expansion Lawyer To Learn More
Are you considering expanding your business enterprise to the United States? Stephenson Fournier is ready to advise you at every step. Call our Houston office at 713-629-9494 or contact us online to schedule your initial consultation.
