doing business in america usa
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1
DOING BUSINESS IN THE USA
Prashant Ajmera, B.Sc. LL.B. India ICSA (UK)
Law Office of Prashant Ajmera & Associates
2 Introduction
Law Office of Prashant Ajmera & Associates
3
Introduction
Law Office of Prashant Ajmera & Associates
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
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Introduction
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
6
Forms of Business Organizations
Law Office of Prashant Ajmera & Associates
Corporation Branch of a Foreign Corporation Partnership Limited Liability Company (LLC) Joint Venture (JV)
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Points to Consider prior to Incorporation
Law Office of Prashant Ajmera & Associates
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
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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)
Law Office of Prashant Ajmera & Associates
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)
Law Office of Prashant Ajmera & Associates
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Combined State and Average Local Sales Tax Rates (2014)
Law Office of Prashant Ajmera & Associates
13 Buying an Existing Business v. Starting a New Business
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Buying an Existing Business
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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.
Law Office of Prashant Ajmera & Associates
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?
Law Office of Prashant Ajmera & Associates
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)
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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
Law Office of Prashant Ajmera & Associates
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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
Law Office of Prashant Ajmera & Associates
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
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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)
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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
Law Office of Prashant Ajmera & Associates
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
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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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
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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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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)
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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
Law Office of Prashant Ajmera & Associates
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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45
Videsh Vidya Foundation
Law Office of Prashant Ajmera & Associates
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Contact
Law Office of Prashant Ajmera & Associates
Law office of Prashant Ajmera & Associates
www.ajmeralaw.comprashant@ajmeralaw.com
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