Doing business in the United States can be a lot more complicated than one may think. A company will have to comply with multiple taxing authorities—on the federal, state and local levels. They will also have to consider the applicable taxable income for each jurisdiction.
Corporations organized under the laws of any of the 50 States and the District of Columbia generally are subject to the U.S. corporate income tax on their U.S. source income. Unless exempt under certain rules, all corporations (that have a U.S. tax identification number) must file a Federal tax return (Form 1120) whether or not they have taxable income. Generally, a foreign corporation must file Form 1120-F if the corporation was engaged in a trade or business in the U.S.
A U.S. entity with a foreign affiliate is required to disclose the affiliate’s intercompany activity on forms 5471 and 5472.
Under the 2017 Tax Cuts & Jobs Act (TCJA) also known as the Trump Tax Reform, a U.S. entity with a Controlled Foreign Corporation (CFC) subsidiary has an additional burden of disclosure and tax reporting on its CFC’s Global Intangible Low Tax Income (GILTI).
Our firm expertly assists with all your federal filing requirements, accurately calculating your tax adjustments and credits to minimize your exposure and taxes due.
Besides the federal income tax imposed by the U.S. government, most states and some cities impose their own additional taxes. A business that has sufficient connections or nexus (i.e. sales, payroll, office etc.) in multiple states is required to file a tax return for each state.
In order to avoid double taxation by multiple jurisdictions, our professional team will perform an in-depth analysis to determine in which states your company has sufficient nexus and properly allocate your business’ income.
