Finance

U.S. Tax Considerations for International Businesses

David Kim
1/1/2024
15 min read
TaxFinanceCompliance

Expanding to the United States is one of the biggest growth opportunities for European companies — but also one of the most complex. Different states, separate tax codes, and layers of compliance can make it difficult to know where to start.

That's why we built VIA (Venture Into America) — a platform that guides ambitious founders and finance leaders through every stage of U.S. expansion, from market validation to legal setup and growth.

In this guide, we'll break down the essential steps to entering the U.S. market the right way — with clarity, compliance, and confidence.

Step 1: Research and Market Validation

Before filing any paperwork or opening a U.S. entity, validate that your product or service fits the market.

Key questions to ask:

  • Is there enough demand for my product in the U.S.?
  • Who are my direct competitors?
  • Which region or state has the strongest market concentration?

Tools & Tactics:

  • Test demand with low-budget ads on Google or Meta targeting U.S. audiences.
  • Review import and pricing data from Trade.gov.
  • Talk to potential distributors or customers through LinkedIn outreach or virtual events.

VIA Tip: You can use our AI Expansion Advisor to generate a "Market Readiness Report" customized for your industry and region.

Step 2: Choose the Right Business Structure

Your entity choice determines your tax obligations, investor options, and compliance workload.

Most common options for foreign founders:

  • LLC (Limited Liability Company): Flexible, pass-through taxation, ideal for smaller or service-based businesses.
  • C-Corp: Standard structure for startups seeking U.S. investment, equity distribution, or IPOs.

Popular states for incorporation:

  • Delaware: Investor-friendly and widely recognized.
  • Wyoming: Low fees and privacy benefits.
  • Florida or Texas: Good for physical operations and favorable tax climates.

VIA Tip: The "best state" depends on where you operate, hire, or store goods. VIA's AI Assistant can recommend an ideal state based on your model.

Step 3: Obtain Your EIN (Employer Identification Number)

Every U.S. company needs an EIN, the equivalent of a tax ID.

How to apply:

  • Apply directly via the IRS website.
  • Non-U.S. owners can apply by fax or mail using Form SS-4.
  • Expect 2–4 weeks processing if you don't have a U.S. Social Security Number.

Many online "EIN services" charge hundreds for this — it's free when done correctly. VIA's checklist walks you through the exact steps.

Step 4: Register for State & Local Taxes

Depending on your business activities, you may need to register for:

  • Sales tax: If you sell products or services to U.S. consumers.
  • Franchise or business tax: Some states require annual filings even for remote entities.
  • Payroll tax: If you hire employees or contractors in the U.S.

Common mistake: Many founders believe a Delaware company exempts them from state taxes — but if your team or customers are in another state, you may create nexus there and owe taxes locally.

VIA Tip: Our AI engine tracks multi-state nexus exposure and can flag states where registration may be required.

Step 5: Set Up Banking and Payments

To operate smoothly, you'll need a U.S. bank account or fintech alternative.

Options include:

  • Traditional banks like Chase or Bank of America (in-person verification often required).
  • Online options like Mercury or Relay (accept non-U.S. founders).
  • Stripe Atlas or Wise for international payment infrastructure.

Step 6: Address Compliance and Hiring

As soon as you have a presence in the U.S., several compliance layers apply:

  • Annual filings: Most states require yearly reports or franchise taxes.
  • Registered Agent: A mandatory local contact for state correspondence.
  • Employment Law: Understand at-will employment, payroll taxes, and benefits.
  • Product Regulations: If you sell food, cosmetics, or electronics, check FDA or FCC requirements.

VIA Tip: VIA's compliance dashboard helps you stay on top of deadlines and filings — without needing an in-house legal team.

Step 7: Develop a Go-To-Market Plan

A successful expansion is not just about registration — it's about revenue.

Focus on:

  • Localization: adapt pricing, packaging, and language.
  • Channel strategy: Shopify, Amazon, retail, or B2B partnerships.
  • Brand presence: PR or influencer collaborations for market awareness.

VIA Partner Support: We can connect you with vetted marketing agencies and logistics partners that specialize in cross-border launches.

Step 8: Manage Growth & Multi-State Expansion

Once established, scaling means monitoring compliance as you grow:

  • Add states carefully — each new market triggers potential new tax and HR rules.
  • Review nexus and employee footprint quarterly.
  • Use data to forecast expansion priorities (warehousing, logistics, customer clusters).

VIA's AI Assistant can simulate growth scenarios — projecting costs and compliance obligations across states.

Conclusion

Expanding into the U.S. is not just a legal process — it's a strategic journey that requires foresight, structure, and trusted guidance.

With VIA, you gain a guided pathway through every stage:

  • AI-powered intelligence
  • Legal and operational clarity
  • A network of trusted U.S. partners

Start your U.S. expansion today with confidence — not confusion.

Ready to Expand to the U.S.?

Get your free personalized assessment and discover how we can help your company successfully enter the U.S. market.

About David Kim

David Kim is an expert in U.S. market expansion with over 10 years of experience helping international companies navigate the complexities of entering the American market. With a deep understanding of regulatory requirements, cultural considerations, and strategic planning, David Kim has successfully guided hundreds of companies through their U.S. expansion journey.

Ready to Start Your U.S. Expansion?

Get your free personalized assessment and discover how we can help your company successfully enter the U.S. market.

Ready to Expand to the U.S.?

Get your free personalized assessment and discover how we can help your company successfully enter the U.S. market.

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VIA - Venture Into America | Your Guided Path to U.S. Expansion