Host Morgan Pierstorff, Business Development Director for Newable Avitus’ America Made Easy programme, will be exploring the operational elements of scaling your business in the American market speaking with experts from across the Newable Avitus network and beyond about best practices for international firms.
Title: Entity Formation – Key Considerations for Investors
Every investor will need to consider entity formation in the U.S. at some point as their U.S. business activity grows but with 50 states to choose from where does one set up and what are the pros and cons of one location over another?
While some states are more attractive than others for setting up your entity, there is no one panacea. Thus investors would be wise to take a strategic approach to the decision.
Establishing an entity through which to transact business in the U.S. can serve to de-risk growth and signal to the market a firm’s commitment, but still the decision brings along with it reporting requirements and responsibilities as a corporate citizen that should not be overlooked. The best timing for taking this step can vary from company to company depending on the nature of their business.
You can listen to the podcast here
In episode 2 of the America Made Easy Podcast, we consider the ins and outs of entity formation with Steve Bentley, Senior Vice President of Finance and Director of International Services for Avitus Group who has provided strategic advice and consulting for hundreds of international firms setting up in the U.S.
Tune in to our 2nd full length episode in order to broaden your understanding of the corporate structures available to investors and the practical implications of each form. Investors will walk away with key insights on which elements to include in their decision making as they weigh the decision of when and where to set up their U.S. entity.
You can listen to the podcast here
Value Bombs from the Podcast
1. Foreign firms that do business in the U.S. via a Branch Office rather than through a separate entity face additional liability and taxation.
2. New U.S. companies must obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service to be used to file taxes and open a bank account.
3. Banking in the U.S. can be a hassle for foreign firms and take 2-3 months to set up even after establishing a U.S. entity
Resources Mentioned in the Podcast
Working with Americans: How to Build Profitable Business Relationships
By: Allyson Stewart-Allen and Lanie Denslow
-Download 2 free chapters at: http://www.workingwithamericans.com/downloads2.2.html
-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.
Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.
Newable – On your side in the UK
Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.
Avitus – On your side in the US
For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen and grow their business. From planning your entry into the US market to helping you sustain your business, Avitus offers the combination of customised and comprehensive support you need.