doing business in america usa

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DOING BUSINESS IN THE USA

Prashant Ajmera, B.Sc. LL.B. India ICSA (UK)

Law Office of Prashant Ajmera & Associates

2 Introduction


3

Introduction


Prashant Ajmera, LLB Institute of Chartered Secretary and

Administration (ICSA) Bachelor of Law, Gujarat University Bachelor of Science, Gujarat University Experience in corporate law and

international trade Member of International Bar Association

4

Introduction


Anahita Jagtiani, Esq. Licensed to practice law in the US Member of Pennsylvania Bar Association Juris Doctor (JD), Pennsylvania State

University Bachelors in Accounting & Law, Drexel

University

5 Setting up a Business


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Forms of Business Organizations


Corporation Branch of a Foreign Corporation Partnership Limited Liability Company (LLC) Joint Venture (JV)

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Points to Consider prior to Incorporation


State of Incorporation Name of the Corporation Minimum Capital Nationality or Residency Requirements Tax Returns Office Leases Insurance Corporate Bank Accounts Repatriation of Capital

8 Taxation in the US


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Taxpayer Identification Numbers


Social Security Number (SSN) Employer Identification Number (EIN) Individual Taxpayer Identification

Number (ITIN) Preparer Taxpayer Identification Number

(PTIN)

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Federal Corporate Tax Rates (2014)


Taxable Income Over

Under Tax Rate

$0 $50,000 15%$50,000 $75,000 25%$75,000 $100,000 34%$100,000 $335,000 39%$335,000 $10,000,000 34%

$10,000,000 $15,000,000 35%$15,000,000 $18,333,333 38%$18,333,333 - 35%

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State Income Tax Rates (2014)


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Combined State and Average Local Sales Tax Rates (2014)


13 Buying an Existing Business v. Starting a New Business


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Buying an Existing Business


In some cases, buying an existing business represents less of a gamble than starting a new business from scratch. However, you must perform due diligence to ensure that you are fully aware of the terms of the purchase.

If you have decided to buy an existing business, you will want to be sure you are making the right choice in your new venture.

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Advantages of Buying an Existing Business


Reduction in startup costs Availability of human resources Possibility of jump starting cash flow due

to existing inventory or receivables Better financing options due to cash flow

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Points to Consider prior to Purchasing an Existing Business


There are many different types of businesses to buy. Take the following steps to narrow down the list of potential businesses you may want to purchase: Identify your interests Consider your talents List conditions for your business Quantify your investment

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Due Diligence to Buy an Existing Business


Business valuation Obtain all licenses and permits Zoning requirements Environmental concerns Outstanding dues/taxes background

check Compliance with Bulk Sale laws

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Business Brokers


Brokers can help find businesses for sale that best suit your needs Hotel Convenient store Car wash Small, medium, or large size business

Brokers can provide database of businesses for sale and franchise opportunities for a fee

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Starting a New Business Venture


Business plan Business assistance and training Business location Financing your business Determine the legal structure of your

business Register a business name

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Starting a New Business Venture Contd.


Get a tax identification number Register for State and Local taxes Obtain business licenses and permits Understand employer responsibility

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How can Ajmera Law help?


Ajmera Law is affiliated with several economic development government authorities of the Mid-West Region of United States (eg. Illinois, Missouri, Iowa, Kansas, Nebraska, Oklahoma, Arkansas)

Scope out new and existing business opportunities all over the United States

Association with business brokers and professionals

Help find or establish business qualifying under the EB5 category

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Moberly Region (Missouri)


Strengths in Manufacturing, Metal Fabrication, Composite Fabrication, Logistics, Animal Sciences, Energy, Call Center, Customer Service/Fulfillment Services, Agriculture, Agri-Services

Major employers in the Region pull from up to 60 miles

12 Universities & Colleges within 1 hour


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Moberly Region (Missouri) Centralized location in the US offers

superb accessibility to vendors & customers Ability to serve the entire US from one

location Efficient transportation and improved lead

times Within a 1 Day Drive of 52% of all US

Manufacturing Proximity to all Major US markets Major transportation arteries with access

to all Major US Ports to serve the Global Marketplace

24 Foreign Investment in US Real Estate


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Real Estate Investment


Severe downturn is US real estate market that took place several years ago, combined with a weak dollar, has produced some relatively good bargains

Foreign non-resident real estate owners have two taxation options based on whether the property generates: Passive income; or Effectively connected income (ECI)

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Passive Income v. Effectively Connected Income


Passive income is any fixed, determinable, annual or periodic income derived by a foreign investment or business activity, and is subject to 30% tax withholding on a gross basis.

Effectively connected income is income that can be shown to be connected to a trade or business, and is taxed on a net basis at the graduated tax rates that apply to any US citizen, resident or entity.

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Foreign Investment in Real Property Tax Act (FIRPTA)


This act applies on the sale of US real estate by foreign owners

Under this law, any disposition of US real property interests by foreign investors or their corporations are subject to US tax.

28 US Labor Laws


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Wages & Hours


The Department of Labor administers and enforces federal labor laws

The Fair Labor Standards Act (FLSA) prescribes standards for wages and overtime pay, which affect most private and public employment

Current federal minimum wage rate is $7.25 per hour

Some states have implemented higher hourly wage rates

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Family and Medical Leave Act


The Family and Medical Leave Act (FMLA) requires employers of 50 or more employees to give upto 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or for the serious illness of the employee or a spouse, child or parent.

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Other Labor Laws


Apart from the two major laws, employers also need to comply with the following: Workplace Safety & Health Workers’ Compensation Employment Retirement Income Security

Act Unions Employee Health Insurance Americans with Disabilities Law

32 Insurance Requirements


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Insurance Requirement for Employers


Businesses with employees are required by law to pay for certain types of insurances: Workers’ Compensation Insurance Unemployment Insurance Disability Insurance (in select states)

California New Jersey New York Hawaii

34 Business Licenses & Permits


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Federal & State Licenses and Permits


You may need to obtain a federal license or permit if your business is involved in activities supervised and regulated by a federal agency, such as: Selling alcohol, tobacco, and lottery Sale of firearms Commercial fishing Mining and drilling Transportation and logistics Sale or manufacturing of pharmaceutical

products

36 U.S. Business Related Visas for Foreign Nationals


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Business Visas


Your U.S. visa requirements should be a part of the planning process in structuring of your U.S. operation

Temporary U.S. visas include: B-1/B-2 visitors visa L-1 intra-company transferee visa EB-1(C) visa for executives and managers

transferred from a multinational EB-1 Green Card for aliens of extraordinary ability EB-5 immigrant investor visa H visas – temporary work permits

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B-1 Visa


With a B-1, a non-U.S. national cannot work for and be paid by any U.S. source

A business owner can, with this visa: Negotiate contracts Consult with business associates Litigate or arbitrate Participate in conventions and seminars Conduct research and engage in certain

other permitted activities in the States

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L-1 Visa


Requirements for eligibility: Foreign national must be an “executive”,

“manager”, or “person of specialized knowledge”

Must have worked in a foreign enterprise for at least one year within the past three years in one of the above categories

The employee is being transferred to the foreign enterprise’s U.S. subsidiary or branch office temporarily

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L-1 Visa Advantage


No annual limits on the number of foreign nationals who can qualify for this category

No prevailing wage standards A foreign national can apply for

permanent residence without an adverse impact on the nonimmigrant status

Employment authorization (EAD) for spouses

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EB-1(C)


An EB1C is an immigrant visa in the EB1 category that is reserved for executives and managers transferred from a multinational corporation.

An individual is eligible to obtain an EB1C visa if he or she is: Employed as an executive or manager By a qualified company For at least 1 of the past 3 years

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EB-1(A) Visa


You may be eligible for an employment-based visa if you have an extraordinary ability, are an outstanding professor or researcher, or are a multinational executive or manager.

Each occupational category has certain requirements that must be met:

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EB-5 Visa


All EB-5 investors must invest in a new commercial enterprise;

Create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years of the immigrant investor’s admission to the United States as a Conditional Permanent Resident; and

Required minimum investments are: $1 million for a general business $500,000 for a high-unemployment area or rural

area in the United States

44 Our Corporate Social Responsibility


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Videsh Vidya Foundation


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Contact


Law office of Prashant Ajmera & Associates

[email protected]

http://www.ajmeralaw.com/