Foreign companies establishing a presence in the United States are often confused and broad-sided by the myriad of state and local tax implications that they may become subject to due to their activities within the US, even when there are little to no federal tax obligations. The US states have little restriction when asserting their taxing powers - such as what they consider to be engaging in a trade or business. Further, states are not bound by treaty restrictions or uniform tax laws. These issues make it difficult for a foreign company to comply with state taxing authorities.

SimekScott’s inbound state tax services will provide our inbound clients a comprehensive approach to understanding the multitude of state and local taxing authorities, their broad reach subjecting a foreign company to their taxes and a company’s state tax burdens based on their activities within the United States.

We work with our clients through a holistic approach to provide guidance and determine solutions to their state and local tax burdens through:

  • Business review: Working with our clients to fully understand their business, US operations and objectives.
  • Nexus determination: Analyzing our clients' business activities to determine a state's power to subject our clients to income, franchise, gross receipts, sales and use and other indirect taxes.
  • Sourcing and apportionment: Determining and providing solutions to the proper sourcing and apportionment of our foreign clients’ sales.
  • Filing method: Analyzing our clients' structure and operations in order to determine the proper state filing methodologies.
  • Compliance: Providing solutions to state registration and compliance requirements.
  • Tax planning: Determining the best tax strategy for clients entering the US market (i.e. permanent establishment, entity formation, etc).