Bringing Your Business to the U.S.? Let’s Make It Smooth And Tax-Smart.
Expanding your business to the U.S. is a huge opportunity—but if you don’t set up your finances properly, you could be walking straight into IRS penalties, sales tax nightmares, and cash flow chaos.
We get it. The U.S. tax system is complicated, state rules are all over the place, and compliance deadlines sneak up fast. You’re focused on growing your business, not deciphering tax codes. That’s where we come in.
At Insogna CPA, one of the top CPA firms in Austin, Texas, we help international businesses launch in the U.S. the right way: avoiding costly mistakes and setting up for long-term success.
Let’s break down the five biggest tax and accounting pitfalls and how to sidestep them like a pro.
1. Picking the Wrong Business Structure
LLC? C-Corp? S-Corp? If you’re scratching your head trying to figure out which one to choose, you’re not alone. Your business structure affects your taxes, liability, and ability to attract investors so getting it right from the start is a big deal.
What Happens If You Get It Wrong?
- You overpay in taxes because you didn’t pick the most tax-efficient option.
- You run into IRS issues because your structure doesn’t align with U.S. tax treaties.
- Investors hesitate to fund your business because of structural restrictions.
How to Fix It:
- Work with an Austin tax accountant to determine the best fit—LLC, C-Corp, or S-Corp—based on your goals.
- Consider U.S. tax treaties to avoid double taxation.
- If you’re planning to raise capital, a C-Corp might be the best choice.
2. Ignoring U.S. Sales Tax (It’s NOT Like VAT!)
Unlike VAT, sales tax in the U.S. is handled state by state—meaning different rates, different rules, and different deadlines depending on where you do business. If you’re selling online or across multiple states, you need to know where you owe tax.
What Happens If You Get It Wrong?
- You get slapped with fines for not collecting the right sales tax.
- You unknowingly owe taxes in states you didn’t realize you had Nexus in.
- Customers get upset when unexpected tax charges appear later.
How to Fix It:
- Use automated sales tax software or work with a tax advisor in Austin to track your obligations.
- Register for sales tax in states where you have Nexus (yes, even online sales count!).
- Collect and remit sales tax on time to avoid penalties.
3. Not Setting Up U.S. Payroll Correctly
Hiring employees or contractors in the U.S.? You can’t just Venmo them and call it a day. U.S. payroll laws require proper tax withholdings, compliance with federal and state regulations, and clear worker classifications.
What Happens If You Get It Wrong?
- You get hit with payroll tax penalties from the IRS.
- You misclassify employees as contractors and face big fines.
- Payroll delays hurt employee morale and your reputation.
How to Fix It:
- Set up a S. payroll system that integrates with your accounting software.
- Work with an Austin accounting service to handle payroll tax compliance.
- Classify employees correctly to avoid IRS audits and fines.
4. Trying to Run Everything from an International Bank Account
If you think you can operate your U.S. business with a bank account from home, think again. Not having a U.S. business bank account can cause cash flow issues, slow payments, and higher fees.
What Happens If You Get It Wrong?
- You struggle to accept payments from U.S. clients.
- You lose money on foreign transaction fees.
- You can’t establish business credit in the U.S., which limits growth opportunities.
How to Fix It:
- Open a S. business bank account to make transactions seamless.
- Work with a CPA in Austin, TX to ensure proper tracking of income and expenses.
- Use a S. based payment processor to avoid unnecessary international fees.
5. Missing U.S. Tax Compliance Deadlines
The IRS doesn’t play around with tax deadlines. Late filings, incorrect payments, and missed sales tax deadlines can lead to fines, audits, and cash flow problems.
What Happens If You Get It Wrong?
- You rack up late fees and penalties.
- Your business gets flagged for an audit (no thanks!).
- You suddenly owe a massive tax bill you weren’t expecting.
How to Fix It:
- Hire an Austin small business accountant to manage deadlines and filings.
- Use accounting software that tracks tax due dates.
- Set up quarterly estimated tax payments to avoid a big year-end surprise.
Expanding to the U.S.? Let’s Make It Easy.
Expanding your business should be exciting—not stressful. At Insogna CPA, one of the top CPA firms in Austin, Texas, we help international businesses set up their finances, navigate U.S. tax laws, and avoid costly mistakes.
Whether you need business formation guidance, tax planning, or payroll setup, we’ve got your back.
Schedule a strategy call today, and let’s get your U.S. expansion set up for success!