This document discusses new business opportunities in the United States and considerations for foreign companies looking to enter the US market. It covers topics such as choosing an entity structure, intellectual property protection, taxation, transfer pricing, and employment issues. The document provides an overview of the large US market and regulatory environment, and outlines strategies for setting up operations and structuring intercompany agreements to minimize tax liability.
When a business owner decides to sell the company, there are different scenarios to consider ensuring the sale benefits the seller as much as possible. It’s imperative that the owner should understand the tax implications and how they relate to the company’s corporate structure. When starting a business or changing your business structure, one of the most common options business owners evaluate is whether to form an S corporation or C corporation. These are the two most common ways to incorporate, and the choice really depends on your business goals.
Final top ten mistakes startups make 09.23.2014 (00046831x c0cb4)Roger Royse
LEARN FROM THE EXPERTS. EXPERIENCED CFO AND ATTORNEY WILL DISCUSS OBVIOUS AND AVOIDABLE MISTAKES COMMONLY MADE BY STARTUPS IN THEIR EARLY YEARS.
Financial and legal mistakes go hand in hand and often overlap. This interactive "conversation" between a CFO and an attorney will shed light upon these common mistakes, as well as provide solutions for avoiding common pitfalls. This webinar is geared towards current and future executives at startups, financial and legal advisors of startups, and students considering starting their own businesses.
Speakers: Lisa Chapman, Esq. - Royse Law Firm
Chris Chillingworth - Partner at CFOs2Go
Moderator: Fred Greguras, Esq. - Royse Law Firm
California Incentives and Multi-State Tax Issues webinar slidesRoger Royse
An online discussion of various state tax issues for companies and individuals doing business in California. Our panelists cover recent developments in California income and sales tax, tax credits and incentives, multi-state tax issues for technology companies and state residency planning for individuals. Our panel of speakers includes:
Roger Royse, Royse Law Firm
Monika Miles, Miles Consulting Group
David Wittrock, Price, Wittrock CPA LLP
David Spence, Royse Law Firm
The Paper Armageddon A Practical Guide For Creating A Document Retention Poli...Roger Royse
In this age of information overload, companies must make smart decisions about which documents to retain, and when and how to retain them. Lisa Chapman, Esq. of the Royse Law Firm will provide an overview of legal and practical considerations that should inform your documentation policy, with an emphasis on ensuring that your Company is complainant with tax and other relevant laws as well as practical solutions for handling what is now being called the "information overload."
Tax Cuts & Job Act Implications for Small Business Investments Companies Polsinelli PC
On December 22, 2017, the President signed into law a federal tax reform bill commonly known as the Tax Cuts & Jobs Act (the “Tax Act”). The Tax Act resulted in significant changes to the U.S. tax system on a number of fronts. This webinar will provide an overview the provisions of the Tax Act relevant to SBIC’s. We will also address the impact of the Tax Act upon the choice of entity decisions and a number of ancillary matters.
Emploment law issues for the gig economyRoger Royse
Discussion on misclassification of employment, managing risks of employment, strategies for avoiding misclassification, and changes in the legal landscape with regards to employment
American Incorporators has been helping businesses incorporate for more than 35 years. Here, we break down the pros and cons of the most common business entities: C-Corporations, LLCs and S-Corporations.
CTKnowledgeShare: CT Corporation is dedicated to educating our customers on the most current and essential topics for corporate legal and compliance professionals.
Alternative Structures for Life Sciences Companies: The LLC Holding CompanyWilmerHale
Explores the following:
- Establishing the LLC Holding Company
- Benefits and Drawbacks of Using the LLC Holding Company Structure
- Timing Considerations
Holding company - - what it is, how makes money and which are advantages, and...Wael El Mougy
Complex but short presentation is the best answer for the most popular questions about holding company. It includes important information and examples of the most popular holding companies.
When a business owner decides to sell the company, there are different scenarios to consider ensuring the sale benefits the seller as much as possible. It’s imperative that the owner should understand the tax implications and how they relate to the company’s corporate structure. When starting a business or changing your business structure, one of the most common options business owners evaluate is whether to form an S corporation or C corporation. These are the two most common ways to incorporate, and the choice really depends on your business goals.
Final top ten mistakes startups make 09.23.2014 (00046831x c0cb4)Roger Royse
LEARN FROM THE EXPERTS. EXPERIENCED CFO AND ATTORNEY WILL DISCUSS OBVIOUS AND AVOIDABLE MISTAKES COMMONLY MADE BY STARTUPS IN THEIR EARLY YEARS.
Financial and legal mistakes go hand in hand and often overlap. This interactive "conversation" between a CFO and an attorney will shed light upon these common mistakes, as well as provide solutions for avoiding common pitfalls. This webinar is geared towards current and future executives at startups, financial and legal advisors of startups, and students considering starting their own businesses.
Speakers: Lisa Chapman, Esq. - Royse Law Firm
Chris Chillingworth - Partner at CFOs2Go
Moderator: Fred Greguras, Esq. - Royse Law Firm
California Incentives and Multi-State Tax Issues webinar slidesRoger Royse
An online discussion of various state tax issues for companies and individuals doing business in California. Our panelists cover recent developments in California income and sales tax, tax credits and incentives, multi-state tax issues for technology companies and state residency planning for individuals. Our panel of speakers includes:
Roger Royse, Royse Law Firm
Monika Miles, Miles Consulting Group
David Wittrock, Price, Wittrock CPA LLP
David Spence, Royse Law Firm
The Paper Armageddon A Practical Guide For Creating A Document Retention Poli...Roger Royse
In this age of information overload, companies must make smart decisions about which documents to retain, and when and how to retain them. Lisa Chapman, Esq. of the Royse Law Firm will provide an overview of legal and practical considerations that should inform your documentation policy, with an emphasis on ensuring that your Company is complainant with tax and other relevant laws as well as practical solutions for handling what is now being called the "information overload."
Tax Cuts & Job Act Implications for Small Business Investments Companies Polsinelli PC
On December 22, 2017, the President signed into law a federal tax reform bill commonly known as the Tax Cuts & Jobs Act (the “Tax Act”). The Tax Act resulted in significant changes to the U.S. tax system on a number of fronts. This webinar will provide an overview the provisions of the Tax Act relevant to SBIC’s. We will also address the impact of the Tax Act upon the choice of entity decisions and a number of ancillary matters.
Emploment law issues for the gig economyRoger Royse
Discussion on misclassification of employment, managing risks of employment, strategies for avoiding misclassification, and changes in the legal landscape with regards to employment
American Incorporators has been helping businesses incorporate for more than 35 years. Here, we break down the pros and cons of the most common business entities: C-Corporations, LLCs and S-Corporations.
CTKnowledgeShare: CT Corporation is dedicated to educating our customers on the most current and essential topics for corporate legal and compliance professionals.
Alternative Structures for Life Sciences Companies: The LLC Holding CompanyWilmerHale
Explores the following:
- Establishing the LLC Holding Company
- Benefits and Drawbacks of Using the LLC Holding Company Structure
- Timing Considerations
Holding company - - what it is, how makes money and which are advantages, and...Wael El Mougy
Complex but short presentation is the best answer for the most popular questions about holding company. It includes important information and examples of the most popular holding companies.
6ª edição da Coleção de Ensaios sobre Desenvolvimento e Oportunidades de Inve...Gabriel Prado de Barros
Gostaria de compartilhar com vocês a 6ª edição da "Collection of Essays on Development and Investment Opportunities in Brazil” (Coleção de Ensaios sobre Desenvolvimento e Oportunidades de Investimento no Brasil), dedicada principalmente a empresas coreanas, já investindo no Brasil ou dispostas a investir no Brasil.
Nesta edição, sinto-me lisonjeado por ser um dos contribuintes de conteúdo com o artigo "Logística - o fator de crescimento econômico sustentável de uma nação".
As per Companies Act, 1956 :
Holding Company: A holding company is a parent company that owns enough voting stock(more than 50%) in a subsidiary to make management decisions , influence and contorl the company's board of directors
Epc project interdepency and Work Flow- promoignitetribes
Engineering, Procurement and Construction are highly correlated and set precedence against each other. They are very interdependent and these dependencies become increasingly critical as the phases are overlapped. In this module we share the interdependence of Engineering - Procurement and the influence in Construction. Here we touch a bit on work front monitoring and work face planning.
There are plenty of office etiquette lessons every employee should be cognizant of. From spreading too much gossip to talking too loudly around other co-workers, there are a host of mistakes that do nothing more than slow down everyone's day. See which mistakes made the list and what you can do to keep them from happening at your company.
John P. Garcia, Targus Group International, Inc. - Speaker at the marcus evans Tax Officers Summit 2012, held in Las Vegas, NV, delivered his presentation entitled A Systematic Approach for Obtaining Foreign Tax Credits
Unintended consequences: important considerations for owners to prepare for t...BuyAndSellABusiness.com
BizON had the honour of sponsoring the Business Transition Forum! We would like to share some valuable information with our audience from the forum in case you did not have the opportunity to attend!
This is a presentation about IEG's evaluation of the Doing Business Indicators. The Doing Business Indicators are the Bank Group's well-known tool for comparing the business regulatory environments of 178 countries.
Business Breakups (Series: Common Commercial Conflicts)Financial Poise
As any entrepreneur will attest, starting and operating a business comes with unique challenges. These challenges are a key reason that, by some estimates, half of the companies that are founded today will not exist four years from now. It can be argued that the effort and attention needed to find success precludes business owners from planning for failure. This webinar focuses on the realities of a failing business from the owners’ perspective. Join our panel of experts as they discuss the various considerations that should be given at the outset of start-up negotiations and through business breakup, including dispute negotiation and litigation.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/business-breakups-2019/
The speaker will highlight and discuss of a number of case stories which illustrate frequent missteps made by entrepreneurs and start ups.
Topics will include:
when and how to document your deal
capitalization
raising funds
attracting investors
and more!
The discussion will use real case stories to illustrate each topic in a meaningful and easy to understand manner.
By understanding these common missteps, entrepreneurs and startups will be better able to more successfully navigate the pitfalls and traps that can keep their startup from getting off the ground.
Doing Business in Canada by Fraser Milner Casgrain LLP (FMC) provides a general overview of the principal corporate, tax and other legal considerations that would be of interest to foreign businesses wishing to establish or acquire a business in Canada. The material contained in this publication focuses on federal, British Columbia, Alberta, Ontario and Québec legislation.
The guide covers a huge array of topics including: Constitution
Foreign Investment Regulations
Tax considerations
Import Considerations
Competition Act
Privacy Laws
E-Commerce Law
Immigration Restrictions
Labour and Employment
Energy Law
Environmental Law
and much more!
Veteran Silicon Valley attorney Roger Royse will discuss, compare and contrast the various options available to entrepreneurs when it comes to funding their startup.
The speaker will address some common questions when it comes to funding for startups, including:
What are the best funding options for entrepreneurs to scale their business?
When should entrepreneurs pursue external funding?
How do entrepreneurs choose the right investor?
What alternative sources of funding are available?
How and why should a founder stage their funding rounds?
When should a founder think about exiting?
How can advisers help with the funding process?
and more!
Crowdfunding crypto - ic os march 12 2018Roger Royse
Block chain, bitcoin and other cryptocurrencies, and ICOs have dominated recent headlines. While excitement continues to grow around this rapidly expanding space, there still seems to be a lot of unanswered questions. Roger Royse, founder of the Royse Law Firm, discusses the legal issues that may determine the future of these emerging technologies.
This workshop helps attendees understand the income taxation of trusts and estates, identify sources of taxable income, calculate distributable net income, and apply the Alternative Minimum Tax.
Presenter: David Spence, Jennifer Han, Allison Kroeker, and Li (Fiona) Xu of Royse Law Firm
The Future of Farming: Ag Subcommittee TestimonyRoger Royse
Roger's testimony before the House Agriculture Subcommittee on General Farm Commodities and Risk Management. He discusses technological innovations, opportunities, and challenges for producers in the agriculture industry.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
1. NEW BUSINESS OPPORTUNITIES
IN THE UNITED STATES
The United States Commercial
Service of The American Embassy
in Bucharest, Romania
and
Roger Royse
Royse Law Firm, PC
California, USA
March 5th, 2012
IRS Circular 230 Disclosure: To ensure compliance with the requirements imposed by the IRS, we inform you that any tax advice contained in this
communication, including any attachment to this communication, is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1)
avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to any other person any transaction or matter addressed herein.
2. GENERAL CONSIDERATIONS
Payroll
Employees Tax
Liability Protection US Business Transfer Pricing
Capitalization Intellectual
Regulatory Property
2
3. THE U.S. MARKET
• 3.7 Million Square Miles
• GNP - $12 Trillion
• Free Trade Agreements
- NAFTA, CAFTA, WTO, OECD, APEC, OAS
3
9. CHOICE OF ENTITY
Which one is right for you?
• Limited Liability Company (LLC)
• Limited Partnership (LP)
• C Corporation
• S Corporation
• Statutory Trust
9
10. EFFECTIVELY CONNECTED INCOME
• Income effectively
connected with a US
trade or business
• Dependent agent
US PE
• Effects?
10
11. TRANSFER PRICING
• Code section 482
• “Controlled" entities
• Arm's length standard
• Understatement penalties – 20% or 40%
• Adequate documentation (i.e. a transfer price study)
11
12. TRANSFER PRICING
BUY-SELL MODEL
Parent • Buy Sell
Company
• Just-in-Time Inventory
System
$ Products
Services
US Customers
$
US Profit
12
13. TRANSFER PRICING
COMMISSION MODEL
Parent
Company
Products
Sales Services
Support
Services
US Customer
Sales & Product Support
13
14. IP HOLDING COMPANIES
Technology and
Parent Intellectual Property
Company
• Deferral
IP Holding • Worldwide Tax
Company Rate
Royalty • Withholding Tax
Issues
License
14
15. CAPITALIZATION
Parent
Company • Debt
• Deductible interest, but must
pay or accrue
• Must be repaid
Debt • “Deep Rock Doctrine”
$
Equity • Equity
• Not required to be repaid
• Dividends are nondeductible
• Thin Capitalization Rules
• Earnings Stripping
15
16. EARNINGS STRIPPING
Parent
Interest Company Loan
Payments
• Loans from the foreign parent to the US Sub requiring the
payment of deductible interest back to the foreign parent
16
18. FOREIGN PERSONNEL
• VISA Requirement
• Non-Resident Alien or Resident for Tax
- Green Card
- Substantial Presence Test
- Treaty Definitions
• Estate and Gift Tax
- Domicile
18
19. EMPLOYEE RIGHTS
• Minimum Wages & Maximum Hours
• Non-Discrimination
• Pension Rights – ERISA & Social Security
• Health and Safety
• Unemployment
• Sexual Harassment
• Mass Layoffs (WARN Act)
19
20. INTER-COMPANY AGREEMENTS
• Shipping Terms
• Payment Terms
• Risk of Loss & Title Passage
• Insurance
• Most Favored Nation Clauses
• Price Protection
• Indemnity
• Warranty
• Trademarks & Marking
20
22. WITHHOLDING TAXES
TREATY EFFECT
• Dividend
• Interest
• Royalties
• Service Income
22
23. TREATIES
OTHER
• Permanent Establishment Required for Tax on
Business Profits
• Information Exchange
• Competent Authority
• Non Discrimination
• Limitation of Benefits
23
24. COST SHARING
US
Company
Buy In Ownership
Payment of Intangibles
Foreign
Operations
Company
24
25. ANTI-DEFERRAL REGIMES
SubPart F Effectively
(Controlled Foreign Connected Income
Corporations)
Passive Foreign Transfer Pricing
Investment Company
25
27. INTERNATIONAL E-COMMERCE
OPERATIONS
US or
Cost Foreign
Sharing Company
License
Deemed
Sale International
Holding
Company
Local
Customer Server License/Royalty
Fees/Sales Company
Company
Royalties
Commission/Fees
27
28. IP HOLDING COMPANY STRUCTURES
Founder Preferred
Optionees Shareholder
US Sales
Foreign Company
US
Holds Technology
Company
Contract R&D
100%
Service Fees
Service
Local Products Tax Haven Fees [PRC]
Distributors Company
Contract
Manufacturer
Manufacturing
28
29. IP HOLDING COMPANY STRUCTURES
Founder Preferred
Optionees Shareholder
US Sales
Foreign Company
US Holds Technology
Company
Contract R&D
100%
Service Fees
Service
Local Products Tax Haven Fees [PRC]
Distributors Company Manufacturer
Contract
Manufacturing
29
30. IP HOLDING COMPANY STRUCTURES
US Company
Domestic Company
US Sales Holds Technology
Contract R&D
Product sales
Local 100%
Technology License
Distributors
100% Tax Haven
Products
Local Sales
Service
Fees
Contract
Manufacturer Manufacturing
(or License)
30
31. STATE TAX ISSUES
• Employees
• Admin, legal and commercial California
• Registrations, enforcement Parent
• R&D, commercialization
IP License
Transfer Back
Nevada IP
Holding Co.
Services Income
31
32. CALIFORNIA “ECONOMIC” NEXUS
Revised Section 6203 of the CA Revenue and Taxation Code
• Taxpayers “doing business” in California are subject to
tax in California. California
• “Doing business” includes when a taxpayer:
(1) - engages in any transaction for financial or
pecuniary gain within California; or
(2) - is organized or commercially domiciled in
California; or
(3) - has annual sales in California that exceed the
lesser of $500,000 or 25% of total sales; or
(4) - has real and tangible personal property in
California with a value exceeding the lesser of
$50,000 or 25% of total property; or
(5) - has payroll in California that exceeds the lesser of
$50,000 or 25% of the total payroll.
• Activities of partnerships and LLCs are attributed to their
owners for purposes of determining whether the owner
is “doing business” in California.
• Amount of tax still depends on apportionment.
32
33. EXON-FLORIO REVIEW BY CFIUS
Committee on Foreign Investment in the United States (CFIUS):
• The Exon-Florio Amendment to the Omnibus Trade and Competitiveness Act of
1988 provides the President of the U.S. with authority to suspend or block
transactions that would allow a foreign person to a control a U.S. business
when there is “creditable evidence” that such transaction may “impair the
national security”
• CFIUS, an inter-agency cabinet level committee performs the review.
• To determine whether a transaction is covered, ask:
(1) - does the transaction involve a foreign person acquiring a U.S. business?
(2) - does the transaction involve a “change of control”?
(3) - does the transaction impair U.S. national security interests?
• Review process could take up to 90 days.
33
36. PALO ALTO LOS ANGELES SAN FRANCISCO
1717 Embarcadero Road 11150 Santa Monica Blvd., 135 Main Street,
Palo Alto, CA 94306 Suite 1200 12th Floor
Los Angeles, CA 90025 San Francisco, CA 94104
www.rroyselaw.com
www.rogerroyse.com
E-mail: rroyse@rroyselaw.com
Skype: roger.royse
36