Guide to Doing Business in the U.S.

Hoberman & Lesser has published an updated Guide, “Foreign Companies Doing Business in the U.S.” There have been several significant changes affecting all business in the U.S. this year. Two major events are the Tax Cuts and Jobs Act of 2017 (“TCJA”) and the Supreme Court ruling on Sales Taxes in the Wayfair (“Wayfair”) case. The TCJA changes the Income Tax Rate and a host of other provisions affecting depreciation, inventory calculations, and deductibility of several business expenses.

Significant changes have recently occurred within the U.S. regarding the imposition and reporting requirements of Sales Taxes in general due particularly to the recent Wayfair decision rendered by the Supreme Court. The Wayfair ruling imposes an increased burden on Companies to comply with individual states reporting requirements for Sales Tax (and many people believe that Income Tax reporting will follow). The Wayfair case allows states to impose their Sales Tax rules on out-of-state entities (including entities located outside of the U.S.) for sales made to residents of their state even if you do not have a physical presence in the state). Prior to the Wayfair decision, States were bound to a physical presence test. For more information, please read the whitepaper here >