Going global can turn a lifestyle business into a transformational business; it can be the difference between good and great. So, what does it take to grow globally, successfully? For those “coming to America,” it is important to set your business up legally and sustainably. You will encounter an entirely new stream of commerce with its unique set of regulations. Be ready to address legal and financial structure, IP protections, employment, contractors, distributors, manufacturing, product liability, federal, state, and local income, sales, and payroll taxes. Unchanged: For those “coming to America,” it is important to set your business up legally and sustainably. You will encounter an entirely new stream of commerce with its unique set of regulations. Be ready to address legal and financial structure, IP protections, employment, contractors, distributors, manufacturing, product liability, federal, state, and local income, sales, and payroll taxes.

As you set up your business in the U.S., you will choose how to structure your business: Unchanged: As you set up your business in the U.S., you will choose how to structure your business:

• Going Direct – You could do business directly through your existing corporate entity. This can, however, pose tax problems; you are exposing your non-U.S. revenues to the long arm of the U.S. legal and tax jurisdiction. For example, your home country operations and revenues would be exposed to U.S. product liability laws and federal, state, and local tax authorities. This option is often expedient for one-off transactions, but inadvisable for a strategy to penetrate U.S. markets.
• Setting Up a Branch, Subsidiary or Affiliated Entity – Other options include establishing a local entity affiliated with your corporate entity. This is a better option when looking to do business in the U.S. over the long haul as it provides better protections for your existing business. Depending on the type of business you operate and the type of market you seek to penetrate in the U.S., it might be most efficient to set up a wholly owned U.S. subsidiary in the State of Delaware (or elsewhere), a sister company owned by the same stakeholders but held independently of the home country entity, or a branch pursuant to multi-jurisdictional treaty.
• Partnering with Local Entity or Establishing Joint Venture – Other options include contracting with a qualified and compliant local entity through which your business can do business. This is a good option when looking to do business in a highly regulated industry or jurisdiction where costs to register or qualify to do business are too high to justify going it alone.

Similar considerations apply when U.S. companies look to do business abroad. Notably, it has long been the case that U.S. companies doing business in the People’s Republic of China should consider partnering with a local PRC company to pursue PRC markets.
Unchanged: Local law requirements in the US can implicate critical considerations, as well as the laws of any specific states in which you will be doing business. Do you have to have a local shareholder or director? Do you need a joint venture partner? What are the regulations surrounding the transfer of IP? What are the regulations surrounding citizenship requirements or permission to work? These are all issues that must be addressed. The same applies for US businesses going abroad. Unchanged: Local law requirements in the US can implicate critical considerations, as well as the laws of any specific states in which you will be doing business. Do you have to have a local shareholder or director? Do you need a joint venture partner? What are the regulations surrounding the transfer of IP? What are the regulations surrounding citizenship requirements or permission to work? These are all issues that must be addressed. The same applies for US businesses going abroad.
Unchanged: How will you direct human capital to advance your goals? Which entity can employ personnel or engage independent contractors? What are the payroll taxing considerations? How will you maintain compliance with laws and regulations governing human capital and taxes? Unchanged: How will you direct human capital to advance your goals? Which entity can employ personnel or engage independent contractors? What are the payroll taxing considerations? How will you maintain compliance with laws and regulations governing human capital and taxes?
Going global is fundamental to maximizing success. But going global involves complex, complicated issues. Expert advisors, such as a trusted lawyer with significant cross-border experience, can make all the difference.