U.S. INVESTMENT LAWS
The decision concerning the vehicle to do business in America is mainly left to the investor; American laws are quite open on this matter. As in some other coutries, a business can be a sole proprietorship, a partnership or an incorporated company. The decision to incorporate should only be made after carefully considering the potential exposure of the business to liability claims, the tax implications regarding a branch vs. subsidiary, and the national image desired. The laws of the state where the business is incorporated will govern the activities of the business enterprise in that state. There are several factors to be considered when making the decision in which state or states to do business. Such factors as requirements to provide detailed reports of business information, the various state and local taxes, the states' labour laws, securities regulations and of course, regional marketing opportunities, need to be carefully considered.
REPORTING REQUIREMENTS
Certain sensitive industries are restricted by Federal law from foreign ownership. These are mainly in the areas of energy, communications, fishing & coastal shipping and public land use. The Federal government has imposed a reporting requirement on all American businesses in which a foreign person has a direct or indirect ownership interest of 10% or more. There are also the so-called "voluntary" reporting regulations which are applicable to foreign investments in certain industries.
OTHER CONSIDERATIONS
Persons doing business in America should be aware of other Federal laws which will affect the investment such as the Foreign Investment in Real Property Tax Act, the rules of the various Securities Acts, and the expanding regulations of the Environmental Protection Agency. Liability insurance is, of course a major consideration when doing business in the U.S.
Finally, many foreign owned businesses may also be affected by the anti-trust laws, labour regulations and health & safety requirements which both the Federal government and the individual state may have in force.
By taking legal advice on the Federal and state laws which will affect the enterprise, the foreign investor can plan in advance so that his business venture into the United States will not be fraught with unexpected legal restrictions.
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US-VISAS
Post Office Box 25304
London NW5 2ZG England
E-Mail:
visas@us-visas.co.uk