Will my US employees expose my business to US corporation tax on sales they generate?

If an international business allows US employees to make sales in the USA, the business may be exposed to US corporation tax on the sales made in the US. At Foothold America, we require that your US employees are not responsible for signing off on the sale of your goods and services.

The US taxation system is complicated. It’s often very intimidating for an international business to learn and comply with US taxation, but it’s essential you know that your US employees will expose your business to US corporation tax on sales they generate in the US.

At Foothold America, we require that your US employees do not sign off on the sale of goods or services. Instead, they should only ‘tee up’ a sale. However, it is possible for your employees to sign off on sales, if you wish. If you require your US employees to sign off on sales in the USA, we require you to have put a formal review process in place. This process must enable you, or a representative of your head office, to approve each sale before a US employee signs a sale off. Final approval remains with you.

Similar questions about 'Establishing a presence'

What do I need to open a US bank account? Who can help me set up an American bank account? What happens if my US employee signs off the sale of goods or services? How do tax levels vary from state to state? What are the time differences between the UK and USA? What is the cheapest way to explore the US market? How easily can I withdraw from the US if I change my mind? Is the USA the largest importer of UK goods and services? Is it easy for a British business to expand into the USA? Is now a good time for a UK business to expand into America? How long does it take to start trading in the US? What are the tax implications of setting up a business in the USA? Do foreign corporations have to report profits if they are operating in America? Has Foothold America helped UK-based businesses to expand into the US before? Why does it take so long to set up a subsidiary in America? Why do I need a Federal Tax ID number? Where can I get support and advice if I am considering expanding to the US? Are my US employees allowed to sign off on sales of goods and services? How do I set up a company in the US? How do I expand my business to the USA? Why should I explore the US market? What is a subsidiary? Why do I need a subsidiary? What is a C corporation? Should I set up a C corporation or an LLC? How is an LLC taxed? How is a C corporation taxed? Why do I need an EIN? What is a Federal Tax ID number? What level do I pay tax at in the US? How do I open an American bank account? Why does my business need an American bank account? What is the easiest way to explore the US market? Is there a low risk way to explore the US market? Is my business ready to explore America? Can a British business explore the US market? What should I consider when choosing a location for my expanding business? Who can help me to set up a subsidiary in the USA? What can the US market offer my business? How do I form a subsidiary? Which states should I set up my subsidiary in? How much does it cost to set up a subsidiary? How long does it take to set up a subsidiary? What is an LLC? What is an EIN? What is the IRS?

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