With 2020 almost behind us, as well as, thankfully, COVID implications, our panelists see tremendous opportunity to move from “surviving” to “thriving” in 2021.
The United States of America, as the world’s largest economy, is the logical destination for many Canadian and European firms who wish to further market their product lines, stay ahead of their competition, and overall, who are seeking corporate growth.
Our firm, DSML Executive Search, has completed hundreds of recruitments to assist our European and Canadian clients in leveraging the US market to their advantage. However, as most foreign businesspeople are aware, there are many other factors to consider outside of hiring the right talent. Such considerations include, of course, site selection, marketing/pricing, distribution channels and, most importantly, accounting, taxation and legal matters.
Myriam Le Cannellier, from DSML, recently joined panelists Antoine Guillaud (International Management Solutions), and Tom Thorelli (Thorelli and Associates) for a one-hour webinar presentation entitled “Preparing for Your US Expansion Post-COVID” (Link below). This webinar was moderated by Sharon Stead, State of Illinois European Office.
The three main topics discussed in this webinar are:
- The US Legal System – Copyrights and Patents are governed by the US federal law, as is “employment authorization”. However, many other areas of law, such as contracts, employment agreements, and corporate transactions are set by individual states. In addition, some areas are governed by both federal and state law. Corporations should be aware of this system of law and how they vary from state to state.
- Accounting and Taxation – These areas are very important to fully understand. Do you wish your entire company to be considered as “doing business in the US” and taxed accordingly, or would you prefer that taxation be based on the business activity of a “US subsidiary”? Is your corporation covered by a foreign tax treaty? Are you able to engage in transfer pricing? What about individual/expat taxation for legal permanent residents in the US?
- Human Resources and Recruitment – There are so many things to consider when hiring your management team in the United States, such as culture, compensation, experience requirements, GDPR compliance, etc. And, as with both the legal and accounting considerations, the “location of your business” is also tremendously important. DSML, for example, has offices in both Chicago and Boston, which are both very large cities. Over the years we have experienced numerous circumstances where a new client has signed a lease in a location that is significantly undesirable for reasonable commuting of employees, as an example.
In addition, there are many other factors to fully comprehend, such as non-compete and non-disclosure agreements, employment contracts, health care provisions and accounting implications, employee handbooks, US anti-discrimination laws and diversity mandates, etc. These, and other, considerations should NOT appear intimidating though as there are countless successful foreign companies that have certainly overcome these minor hurdles.
The key take-away, in all three of these areas of Law, Accounting, and Recruitment is to fully understand all aspects BEFORE undertaking a commitment.
Consider this one-hour webinar to be an important investment in time.
Before watching the webinar, please note that all three participants in the panel are available to discuss your needs at your convenience with NO obligation.
Recruitment: Myriam Le Cannellier, DSML Executive Search, mlc@dsmlexecutivesearch.com
Accounting, Tax, and Consulting: Antoine Guillaud, International Management Solutions, Inc., aguillaud@intlms.com
Legal: Tom Thorelli, Thorelli & Associates, thorelli@thorelli.com
In addition, any foreign corporation that is interested in discussing investment opportunities in the State of Illinois please reach out to: Sharon Stead, State of Illinois European Office, sstead@illinoiseurope.com. Sharon lives in Brussels and has close to 30 years’ experience working with companies just like yours.