Skip to main content
Contact Us
Search
Weaver Connect
Payment Portal Client Login Weaver Alumni MyWeaver
Home    /    Insights & Resources

Podcast: State and Local Tax Considerations for Non-US Companies Investing in the US

Podcast
Learn about key state and local tax considerations for non-U.S. companies investing in the U.S. with Weaver's Vince Houk, Blake Fuqua and Savannah Brown.
November 26, 2024
Vince Houk
Vince Houk
Partner-in-Charge, International Tax Services
Blake Fuqua
Blake Fuqua
Partner-in-Charge, State and Local Tax Services
Savannah Brown
Partner-in-Charge, State and Local Income Tax Services

Related

Never miss a thing.

Sign up to receive our Tax News Brief newsletter.

Subscribe

In this episode of Weaver: Beyond the Numbers, our hosts explore the topic of state and local tax for non-U.S. companies investing in the U.S. Vince Houk sits down with Blake Fuqua and Savannah Brown to discuss key considerations that interested companies should keep in mind.

Key Points:

  • The impact of state and local tax needs to be considered by international companies establishing or expanding operations in the U.S. There are many state income and sales and use tax incentives offered by jurisdictions that should be considered.
  • Leveraging sales and use tax exemptions will assist companies in reducing costs.
  • Companies should be mindful while navigating nexus rules to avoid costly tax liabilities.

 

Non-U.S. companies entering the U.S. must carefully consider the state and local tax implications of their location. Fuqua explained that selecting a state with favorable sales and use tax exemptions can lead to substantial savings, especially for companies in industries like manufacturing. Brown added that understanding state-specific incentives is crucial from a state income tax perspective as well. States not only differ in how they tax different industries, but they also offer opportunities like job credits and investment incentives, which non-U.S. companies can leverage to reduce their tax liabilities.

“Each state approaches industries differently, so understanding your business’ specific tax incentives is crucial for maximizing savings,” said Brown. For instance, companies often overlook the importance of considering where they form their entities and the type of entities they form. Businesses need to be aware of state taxing jurisdiction rights or nexus rules, as failure to collect necessary certificates can result in substantial liabilities.

A proactive approach to tax planning can significantly mitigate potential issues, ensuring compliance with local regulations while maximizing potential incentives and credits.

Subscribe and listen to future episodes of Weaver: Beyond the Numbers, on Apple Podcasts or Spotify.

©2024