While expanding your staffing firm internationally may seem like a great idea, one should proceed with caution. There are many rules and regulations that need to be followed, and small business owners should ensure they do their research and planning before jumping headfirst into international waters, according to a recent Fox Small Business article.
A major overlooked expense is taxes, Steven Hagen, international tax attorney at Harper Meyer in Miami, says in the article.
“U.S. businesses are generally taxable on their worldwide income. Consequently, if they also have to pay tax on their income in the foreign country, they would have to pay tax there and here,” Steven Hagen, international tax attorney at Harper Meyer in Miami, advised in the article. “To avoid that, the U.S. gives U.S. businesses operating abroad a reduction against U.S. tax for the tax they pay abroad [the U.S. foreign tax credit]. However, there are many exceptions and hoops to jump through in order to qualify.”
For more international business tips, read the full article by clicking here.