Also: Supporting Your Installation Project (“Montage”) in the United States
As German-American experts in auditing and tax consulting in the US, we offer consultation and support to help your business navigate complex tax laws, implement shared service centers, and provide comprehensive support for companies operating in multiple US states.
Establishing and Managing a US Subsidiary: Expert Assistance in German
As your German Wirtschaftsprüfer und Steuerberater in den USA®, we provide value and support. Our role as auditors and tax consultants in the US is not just about offering advice – it involves transforming your cost centers into value-oriented units and leveraging real-time data insights for strategic decision-making.
Boost Efficiency with Centralized Administration and Accounting
Numerous German enterprises leverage shared services to streamline accounting for their US subsidiaries in today’s business landscape. Even smaller companies can benefit from centralized accounting at their German headquarters. With our expertise in US tax matters, we can support you in implementing and optimizing these systems, providing you with a competitive edge in the market.
US Auditing and Tax Consulting Expertise
We help prepare German and American financial reports, assist in shareholder meetings, and facilitate specific accounting processes through Agreed Upon Procedures (AUPs), typically in the form of “Reporting Packages” the parent company requires.
Navigating the Complexity of US Taxes
US tax law is complex, with 51 tax jurisdictions (Federal Government and States). As your German Wirtschaftsprüfer und Steuerberater in den USA®, we help clients navigate these complexities, ensuring compliance with federal and state tax obligations.
Support for Companies Operating in Multiple US States
From the establishment to daily operations of your business, we provide comprehensive support for clients operating in multiple US states. Equipped with our expertise, technical equipment, and CPA qualifications, we guide clients through tax audits and voluntary disclosures at the federal and state levels.
Corporate Nexus and Voluntary Disclosure
In the USA, the concept of Nexus refers to a sufficient physical or economic presence of a company in a state that triggers tax obligations. When a company discovers a previously unnoticed Nexus, the voluntary disclosure process allows for proactively clarifying this tax situation or minimizing potential penalties.
As your German Wirtschaftsprüfer und Steuerberater in den USA®, we analyze your Nexus situation and guide you through the voluntary disclosure process. Our specialized team helps you comply with all tax regulations and optimize your tax situation.
If you have or suspect a Nexus in a US state or have questions about the voluntary disclosure process, we are your go-to experts Contact us for personalized advice.
Navigating U.S. Beneficial Ownership Reporting Changes in 2024
The United States, traditionally seen as a tax haven, is now at a crossroads as it grapples with concerns about the transparency of beneficial ownership, especially in the context of anonymous LLCs formed in states like Delaware, Nevada, and Wyoming. The introduction of the Corporate Transparency Act (CTA) is set to be a game-changer, requiring many businesses and individuals to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) beginning January 1, 2024.
What is Beneficial Ownership?
Beneficial owners are individuals who ultimately own or control a company, whether directly or indirectly. This can include individuals who have substantial control over the company’s management or operations, or who own or control a significant percentage of the company’s ownership interests.
Who Needs to Report?
There are two key categories of reporting companies under the CTA:
- Domestic reporting companies: This includes corporations, limited liability companies, and similar entities formed within the United States.
- Foreign reporting companies: This includes entities formed under foreign country laws and registered to conduct business in the United States.
Key Dates to Remember:
- January 1, 2024: Beneficial ownership information (BOI) reporting begins.
- January 1, 2025: Companies established or registered before January 1, 2024, have until January 1, 2025, to submit their initial BOI report.
- 30 days: Companies established or registered on or after January 1, 2024, have 30 days to file their initial BOI report.
How to File:
Reporting companies will use FinCEN’s secure online filing system, which is expected to be operational by January 1, 2024. Alternatively, third-party service providers can assist with BOI report submissions.
Implications and Considerations:
While the CTA is a step forward regarding transparency, it’s important to note that information won’t automatically be shared with other agencies or jurisdictions, unlike systems such as the Common Reporting Standard (CRS) or the Foreign Account Tax Compliance Act (FATCA). The data will reside in the FinCEN database unless specifically requested by an authorized official.
Additionally, the CTA does not comprehensively address reporting for trusts, leading to some uncertainty. Non-compliance with the CTA may result in civil or criminal penalties.
Recap and Upcoming Developments:
In summary, the CTA requires many businesses and individuals to report information about their beneficial owners to FinCEN beginning January 1, 2024. Reporting companies will use FinCEN’s secure online filing system to submit their BOI reports. While the CTA is a step forward in terms of transparency, it’s important to note that information won’t automatically be shared with other agencies or jurisdictions, and the CTA does not comprehensively address reporting for trusts.
FinCEN is actively developing a Notice of Proposed Rulemaking (NPRM) aimed at enhancing transparency in the U.S. real estate market. The release of this NPRM is anticipated later this year.
- FinCEN’s Small Entity Compliance Guide
- FinCEN’s Beneficial Ownership Information Reporting Reference Materials
- FinCEN’s Beneficial Ownership Information Reporting FAQs
Collaboration with German Consultants
We work closely with your German consultants to support you in the tax and legal structuring of US subsidiaries, including establishing and managing a US subsidiary. Our cultural expertise aids businesses in making informed decisions.
Along with your German consultants, we also handle various matters, such as designing employment relationships for dispatch, allocating income from domestic or foreign operations, and reporting your foreign relations per German regulations.
By leveraging our knowledge and experience as German Wirtschaftsprüfer und Steuerberater in den USA®, we create value for your business.
We also offer business consulting, drawing on our long-standing experience with cultural differences.