Filing taxes in the U.S. is essential but thinking ahead and optimizing your tax strategy can be even more valuable for supporting long-term business growth. Here are a few practical tips:

Even if your U.S. entity hasn’t conducted any business yet, it’s important to file annual tax returns. And, if foreign shareholders (corporations or individuals) own more than more than 25% of your company, you will have to file the required foreign ownership disclosure known as Form 5472.

This form identifies all the transactions between the U.S. entity and its foreign shareholders and non-compliance can trigger a very serious penalty.

The only entity that does not have to file a Form 5472 is a Limited Liability Company (LLC), which is taxed as a partnership, that does not have any qualifying transactions in the previous tax year.

If your U.S. expansion followed years of groundwork such as business trips, trade show fees or promotional costs make sure that these expenses are invoiced to your U.S. entity.

Even if not paid immediately, these costs can be carried forward on your balance sheet to offset future income once your business generates revenue. This approach can significantly reduce your tax burden as you scale.

Once your U.S. operation is up and running, consider preparing transfer pricing documentation. Transfer pricing refers to the pricing of goods, services or intellectual property between related entities (such as your foreign headquarters and the U.S. subsidiary).

Using market-based pricing based on OECD standards helps ensure compliance and can lower your global tax liability.

You might even be eligible for the R&D tax credit in the U.S. that is designed to incentive US-based research and development activity. A taxpayer can claim their R&D tax credit by filing IRS Form 6765, a credit for increasing research activities (for the year in which the qualified expenses were paid or incurred).

However, be mindful of the standing requirement for foreign-based R&D, which stipulates that these expenditures must be amortized over the period of 15 years. Recent changes introduced by the new administration on the other hand allow to fully deduct the costs of US-based R&D again.

We work with experienced US-based CPAs to ensure you have all the information and support needed to expand confidently. From tax planning and compliance to legal and HR guidance, we help you prepare your business for a successful launch in the US.

To avoid unnecessary penalties, it’s always best to consult a tax professional regarding your filing obligations. If you’re unsure whether your company needs to file a tax return, feel free to contact us—we’ll be happy to assist you.