Doing business in the US means you will at some point be paying US taxes. The old adage certainly runs true that it is always cheaper and easier to do things correct from the beginning. International investors certainly do not want to run awry of the Internal Revenue Service (IRS). Unfortunately, this is not the only layer of tax compliance to be concerned about in the US.

US states have their own regulatory and legislative authority. That authority extends to the ability to create their own unique tax regimes. Thus, doing business in the US means navigating compliance with both federal and state level laws, regulations and yes taxes. This can mean multiple filings across multiple states creating a significant compliance requirement for investors as they scale and sell across more and more states.

Any company selling to end consumers will have sales and use tax liability once they surpass certain state thresholds. And you guessed it—those thresholds look different from state to state ranging from annual sales levels to the number of annual transactions. Likewise, once companies have physical or economic nexus based on the level of activity in a particular state they will also have to file a corporate income tax return in that state. That is on top of their annual federal tax return they must file annually regardless of income levels.

Feeling overwhelmed yet? In episode 8 of the America Made Easy Podcast, we try to make sense of US tax with Avitus Director of Tax Services Scott Stevenson.  The conversation provides international investors with a lay of the land of how the tax code in the US is managed and segmented while also exploring trends that will impact their business decisions.

Tune in to our 8th full length episode as we discuss this complicated tax environment and the importance of taking these requirements on early with proactive planning so that tax consequences can be managed and minimized allowing you to function, perform and make profits.