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    rem999's Avatar
    rem999 Posts: 2, Reputation: 1
    New Member
     
    #1

    Jan 10, 2008, 03:24 AM
    Exporting products to the USA
    Good .

    I currently have a business in electronic hardware. It has been running for 13 years now.

    I am looking to setup a branch in the USA and was wanting to find out if it is possible to avoid being taxed in both the USA and the UK.

    I want to take the earnings from the USA back to the UK.

    Does anyone no anything about this procedure as I have heard that in certain states it may be voided for UK companies.

    Thank you
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Jan 10, 2008, 10:30 AM
    If you are in UK and export goods to the U.S. then you don't file federal or state income tax return and pay these taxes in the U.S.

    But if you have a branch in the U.S. and that branch sells good in the U.S. then the branch will be taxes in the same way as any other U.S. business. Any profit of the branch is taxable in the U.S. Now what happens if you transfer the profit to the UK? Ask a UK CPA.

    There is a simple solution also. Don't open a branch in the U.S. Find a existing business in the U.S. that will deal with your UK business. You deal only with this U.S. business; then you don't need to worry about the U.S. taxes.
    rem999's Avatar
    rem999 Posts: 2, Reputation: 1
    New Member
     
    #3

    Jan 10, 2008, 11:01 AM
    Thank you very much that really helps

    It looks like we are going to have to pay tax as we have to have a business presence over there and have stock delivered etc.

    Again you have been very helpful.

    I think we are going to look at states with low tax such as Delaware, Florida and Nevada.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Jan 10, 2008, 12:36 PM
    Agreed; nothing to add.

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