Taxation

Taxation

The attorneys at Barbosa Legal have experience with international taxation, international transactions, international financing arrangements, reducing tax risks, trust structures, and international business structures for investments in the United States.

Pre-Immigration Tax Planning

Individuals relocating to the United States more often than not forget to consider the tax implications of becoming a U.S. resident. It is critical to plan and organize your affairs prior to immigrating as certain transactions can be considered taxable in the United States even though sometimes the foreign country in which the transaction takes place or the country of residence of the individual does not tax the transaction.

Unlike many countries, the worldwide income of all US citizens and tax residents are subject to tax in the U.S. In addition, even when an individual does not plan on permanently moving the U.S., he or she may become a tax resident through physical presence. Such individuals should also seek competent tax advice and plan accordingly in order to minimize the tax consequences of the extended stay in the U.S.

Pre-immigration tax planning can effectively minimize tax liability and avoid penalties related to tax evasion. Planning should be done with the intention of minimizing the tax burden for the individual in both their home country and in the United States.

International tax planning

Individuals and corporations that live and/or operate in multiple countries are often subject to tax laws of multiple jurisdictions. A lack of international tax planning and misunderstanding as to how these laws interact with each other, can leave assets and income subject double-taxation or fines and penalties.

The two most common systems of taxation are no taxation (where no country applies taxation on the income) and double taxation (where different countries subject the same income to tax). Taxes may also be imposed by income tax systems on worldwide income or on local income only.

The practices and policies of international taxation have been greatly affected by the globalization of trade and investment.

International tax planning is the process of determining which tax laws are applicable and then forming strategies to reduce the individual or entities tax burden. An example is to encourage the use of foreign tax credits in scenarios where global income is taxed.

 

Taxation of Business Entities

International individuals and entities may find it challenging to start a businesses in the United States and/or expand their current operations. Misunderstanding potentially conflicting laws can lead to unenforceable contracts and double taxation on transactions.

Barbosa Legal offers comprehensive legal corporate services to a diverse group of corporations and individuals, ranging from start-up ventures to established international companies. The focus is on analyzing the various jurisdictions involved and guide clients towards strategies that best serve their interests. This advice can assist in the carrying out of business, obtaining financing, maintaining legal status, and creating a competitive advantage.

 

Read More about taxation of Business Entities:

Partnerships

A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.

There are two basic types of partnerships — general partnerships and limited partnerships. The general partnership is the simplest and least expensive co-owned business structure to create and maintain. Apart from the costs associated, general partnerships are the most common structure because every partner has a hand in managing the business.

Corporations

A corporation is a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. Early incorporated entities were established by charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through registration.

Most people understand that being involved in today’s business world likely involves taking risks, yet virtually everyone yearns for some level of protection. A corporate legal structure creates a separation between business and personal actions, in effect incorporating your business will provide you liability protection. Forming a corporation can require extra work, including keeping detailed financial records, but the efforts can, prevent you from losing your personal assets including your home.

Limited Liability Companies

A limited liability company (LLC) is the United States-specific form of a private limited company. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

An LLC is not a corporation; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs do not need to be organized for profit.

Agreements

A contract is a voluntary arrangement between two or more parties that is enforceable at law as a binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the civil law tradition.

A contract arises when the parties agree that there is an agreement. Formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound. Each party to a contract must have capacity to enter the agreement.

Lawyers who draft written agreements have an incredibly challenging responsibility. They need to use the right words, in the right way, to define the deal effectively. In most cases, that’s easier said than done.