Go Global – expanding to the United States

Non-US companies must incorporate a wholly or partly owned subsidiary in the States or register as a foreign company conducting business, i.e., establish a branch office. State laws oversee the formation of the business, and each has its own rules and regulations to conduct business within its jurisdiction.

The US. tax system is made up of federal, state, and local taxes. The primary types of taxes in the United States are income, payroll, sales tax, receipts, property, real estate, etc. The United States differs from most countries as it does not have a national VAT but a sales tax imposed at the state and local levels. The federal corporate tax rate is fixed at 21%, but state corporate tax and sales tax rates vary. There are also regional differences in income taxation.

By law, the financial statements of all public companies registered with the United States Securities and Exchange Commission (SEC) must be audited annually by an independent accounting firm. Audits are conducted per the standards of the Public Company Accounting Oversight Board (PCAOB). Financial information is required to be published and filed quarterly. Auditing is not required by law from private companies, but banks or other financial institutions may require it. The audits are usually performed under the United States Auditing Standards (GAAS) of the American Institute of Certified Public Accountants (AICPA). Private companies are generally not required to disclose their financial information publicly.

In 2021, the mileage allowance is $0.56 per mile driven. In 2021-2022, the daily allowances are standard at $151 per day, but exact amounts are determined by county and travel date and vary widely.

By default, an “at-will” employment contract is in place, which means that either an employee or a company can terminate an employment relationship at any time, even without notice and for any reason, excluding discriminatory reasons. Federal or state laws generally do not limit the number of required work hours, but the maximum is generally 40 hours per week and 8 hours per day, and overtime is subject to overtime pay. There are no national requirements for employers to pay for employees’ holidays or vacations. It is common practice to offer about 15 days off a year.