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Houston is a booming international marketplace. International expansions can be particularly tricky. Over the last few weeks you’ve heard about some common surprises. Here are more:
If all I do is export product to another country, things are easy.
Maybe, maybe not. Venturing abroad , even simply to export, requires making sure that you have not triggered tax responsibilities in other countries. What if you have sales people or employees working temporarily in the other country? These can cause tax in the other country. You must also look out for "value added taxes" in other countries. These taxes are similar to sales taxes, but are assessed and paid at every step in the economic chain, not just in retail sales. Often, a business can be responsible for these taxes even if not responsible for income or other taxes.
This all sounds too hard. Where can I find help?
The US provides many resources to support venturing abroad . One of the best is the U.S. Department of Commerce through their Export Assistance Centers. There is one of these centers in Houston They provide one-on-one assistance and counseling and also sponsor programs to assist exporters and potential exporters with their operations overseas. Better yet, their help is usually at no cost, or for only a nominal fee.