U.S. Cross-Border Tax Services for SMB in Canada

U.S. Cross-Border Tax Services for Small and Medium Size Businesses

U.S. tax system is one of the most advanced and complex tax regimes in the world. The complexity of operating one’s business cross-border magnifies the tax complexities for businesses even more. Small and medium size businesses, like large publicly traded multinational companies, have similar, if not the same International tax issues. The difference is in their ability to handle those tax issues and continually comply with growing and challenging tax obligations.

U.S. Tax IQ is uniquely placed to assist small and medium size businesses with all aspects of their U.S. operations and business activities. We have the right expertise and focus, as one of our practice focus areas, on providing practical and effective tax solutions for business owners and small and medium size businesses with U.S. operations or expanding into the United States.

Structuring of U.S. Operations

When your business grows, it is usually great news. But with every growth, you also tap into certain unknowns. If you decided to make an investment in the United States or commence business activities in the United States, you most certainly would benefit from knowing what is the most tax-efficient way of doing so. After all, the least you would want is for your revenues to be double taxed and thus reduce your net profit.

U.S. Tax IQ can help you review your business objectives, line them up with the tax realities, and design a tax structure that not only would ensure your objectives are met, but also protect your business from penalties and extra tax costs for non-compliance. When structuring your operations in the United States, you need to consider what form of conducting business in the United States makes most sense for your business, whether to incorporate or conduct business through a branch, how to repatriate cash, how to maintain your tax structure and comply with applicable tax filing, reporting and withholding obligations, and, finally, what would be the most tax-efficient exit strategy.

Tax Compliance

Tax compliance in the modern age of tax transparency, ever increasing coordination and exchange of information between tax authorities led to increased compliance burdens for businesses. Staying on top of one’s tax filing, reporting and disclosure obligations is a must for all taxpayers.

There is more to tax compliance than preparing and filing one’s U.S. federal and state and local tax returns (although that in itself can get very complicated, especially, when there are multiple affiliates transacting with each other across the borders. Ensuring completion and filing of certain IRS tax forms is also important for proper tax withholding. Typical examples of forms we deal with include W-8 forms, as well as applying and obtaining for Taxpayer Identification Number (for business taxpayers, it is usually Employer Identification Number – EIN).

At U.S. Tax IQ, we do more than just preparing and filing your business tax returns on U.S. federal and, where applicable, state and local levels. We develop tax arguments and tax filing positions that can be supported by business taxpayers on audit by pro-actively anticipating potential tax challenges. We also review your tax, financial, and business framework to identify and explore available tax planning opportunities.

Transfer Pricing

Transfer pricing is not reserved to large publicly traded multinational companies. Of course, it may have devastating tax impact if they get it wrong. But to believe that small and medium size businesses are not “big” enough to be affected by transfer pricing in the current tax enforcement environment worldwide is a huge mistake.

Most jurisdictions around the world, including the United States and Canada, are strictly enforcing their transfer pricing rules and regulations. Penalties for non-compliance are substantial and difficult to abate in the absence of a robust transfer pricing policy and supporting documentation. U.S. Tax IQ assists small and medium size businesses develop their transfer pricing policies, manage their transfer pricing exposure, plan, and defend their transfer pricing, if challenged by the Internal Revenue Service or the Canada Revenue Agency. Our tax attorneys, through their law office, can also assist in drafting intracompany agreements.

Pre-Immigration Planning

If you are moving and are a business owner, we can help with planning your move and prepare your businesses for migration to a different jurisdiction. Doing it before you relocate is important, as there may be tax savings opportunities before your tax residency status changed. Although such tax savings opportunities may still exist after you relocated, they may be much more limited and restrictive.

Business Succession Planning

Many small and medium size business owners want to keep business in the family when they retire. They often have children who have dual citizenship status or live in different parts of the world, including the United States. U.S. Tax IQ can assist with designing a business succession plan and ensure that it is implemented in the tax-efficient manner.

Tax Controversy

We regularly represent small and medium size businesses during IRS examination and at the Appeals level. U.S. Tax IQ helps abate assessed penalties and defend tax positions taken by business taxpayers with respect to their U.S. and world-wide operations. Although we do not litigate, most of the tax issues can be solved before having recourse to litigation.

We know what it takes to work with high achievers!

We regularly work with successful business owners and businesses and have seen exciting growth of our clients when they cross the border and expand into the United States. We understand what it takes and work hard on providing you with sustainable tax strategies and on protecting you from potential penalties for non-compliance. To learn more how we can help you effectively manage your business’ U.S. tax exposure, please contact our tax advisors today at 1.844.829.3678.