US Corporate Tax Services 

With a different tax jurisdiction for every US state, not to mention federal tax requirements, companies planning to expand into the US market or already established there need an effective strategy—one that helps them manage their overall US and Canadian tax liability. Doing so can help avoid many of the potential pitfalls while taking advantage of the numerous opportunities available.

For many Canadian companies, the road to greater prosperity and growth leads to markets in the United States. But hidden along the way are a host of tax pitfalls and opportunities. Those who overlook the tax consequences of their US focused activities run the risk of conflict with federal and state tax authorities, which have become more rigorous in their enforcement efforts.


When expanding operations cross-border, you need to structure your US operations in a way that helps your business better manage its overall tax burden and enhance after-tax cash flow while ensuring compliance with US federal and state legislation.

 

Canadian companies already doing business in the US should regularly review their US-focused business activities to determine whether they are complying with US federal and state tax reporting requirements.

Tony P. Swiderski

Tony P. Swiderski

Partner, Tax

604-691-3029

Meeting these challenges
The best time to develop an efficient US tax strategy is before your company expands into the market. You will need to consider many factors as you develop your strategy. Experienced US Corporate Tax professionals can guide you through the requirements so you can develop a strategy that meets your particular business needs.


For instance, if your business is a Canadian company seeking to enter the US market, you need to:

 

  • Decide what US corporate structure makes the most sense from a tax perspective – subsidiary, branch or joint-venture partnership
  • Choose the type of subsidiary capitalization that is most beneficial – debt, equity or a combination of the two
  • Determine how a limited liability company (LLC) can help your company meet certain strategic objectives
  • Locate operations in jurisdictions that offer incentives, such as property tax holidays.

 

Once your business is established in the US, it is important for you to:

 

  • Repatriate profits to Canada at a manageable tax cost
  • Identify and benefit from valuable US federal tax incentives
  • Claim important sales and use tax refunds
  • Negotiate with the IRS and state tax authorities
  • Structure your operations to enhance tax-effective financing opportunities
  • Develop a transfer pricing strategy that meets your business needs and complies with the relevant statutory provisions.

 

Along with Canadian companies seeking to enter the US market, foreign corporations with US operations, US corporations or trusts, partnerships or limited liability companies with US filings, and the estates of US citizens and residents can all benefit from working with our US Corporate Tax professionals.