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The New Era of Inbound Investment: Why Global Companies Are Choosing the U.S. · Bennett Thrasher Presents: Beyond The Ledger

• 0:08
  SPEAKER_02: Welcome back to Beyond the Ledger, where we go beyond the numbers to explore the strategies, risks, and opportunities shaping today's business landscape.
• 0:16
  SPEAKER_02: I'm your host, Shard A Lakefield.
• 0:19
  SPEAKER_02: The global business environment is evolving rapidly.
• 0:22
  SPEAKER_02: From international tax reform and shifting trade policies to supply chain realignment and economic uncertainty.
• 0:30
  SPEAKER_02: Multinational companies are rethinking where and how they should invest.
• 0:34
  SPEAKER_02: For many foreign parented businesses, the U.S.
• 0:37
  SPEAKER_02: remains a prime destination.
• 0:39
  SPEAKER_02: But expanding into the U.S.
• 0:41
  SPEAKER_02: requires more than understanding the tax implications.
• 0:44
  SPEAKER_02: For successful expansion, it requires a strategic approach to operations, legal structure, financing, and long-term growth.
• 0:54
  SPEAKER_02: Joining me today is Matt Pellegrom, partner in Bennett Thrasher's International Tax Practice, where he advises multinational businesses on the complex tax and business considerations surrounding cross-border investments, helping foreign companies navigate the opportunities and challenges of establishing and growing operations in the United States.
• 1:14
  SPEAKER_02: Thanks for being on the show today.
• 1:15
  SPEAKER_00: Yeah, thanks for having me.
• 1:17
  SPEAKER_02: This is a pretty heavy and attractive topic across the board.
• 1:22
  SPEAKER_02: So I'm ready to dive on in.
• 1:24
  SPEAKER_02: Ready?
• 1:24
  SPEAKER_01: Yep.
• 1:25
  SPEAKER_02: All right, so let's start with the global landscape completely has changed.
• 1:28
  SPEAKER_02: We know that for a fact in multiple ways, but over the past several years, multinational companies have had to navigate a wave of changes from global minimal tax initiatives and evolving international tax rules to shifting supply chains and geopolitical uncertainty.
• 1:45
  SPEAKER_02: As a result, many foreign parented businesses are reevaluating where and how they invest.
• 1:50
  SPEAKER_02: So how are these changes reshaping the conversation around establishing or expanding operations in the U.S.
• 1:57
  SPEAKER_02: And what trends are you seeing among foreign investors today?
• 2:01
  SPEAKER_00: Yeah, uh great question.
• 2:03
  SPEAKER_00: It's been pretty dramatic shift.
• 2:05
  SPEAKER_00: Yes, to say the least.
• 2:06
  SPEAKER_00: Yeah, ever I mean, I think ever since tax reform 1.0 back in 2017-2018, um, and then tax reform 2.0, uh, along with your pillar two compliance, right?
• 2:16
  SPEAKER_00: Or the pillar two initiatives.
• 2:18
  SPEAKER_00: I really think that, you know, foreign investors coming into the United States, inbounding into the US, have historically looked at it from a maybe tax advantageous perspective.
• 2:32
  SPEAKER_00: But that's evolved, right?
• 2:33
  SPEAKER_00: I think the geopolitical landscape has really allowed people to come into the US and invest their money, sell their products, hire workers, exploit the market in the US.
• 2:46
  SPEAKER_01: Right.
• 2:46
  SPEAKER_00: Um, obviously, you know, we have one of the largest consumer markets in the world, probably barring China and India.
• 2:54
  SPEAKER_01: Yeah.
• 2:54
  SPEAKER_00: So more people want to get into the states.
• 2:56
  SPEAKER_00: Right.
• 2:56
  SPEAKER_00: I think the big kind of more recent point is pillar two, the global minimum tax initiative.
• 3:03
  SPEAKER_00: The US has only become more competitive and more attractive from a tax perspective, but an investment perspective since that implementation.
• 3:14
  SPEAKER_02: I'm glad you brought in the consumer part because I was going to ask you with the US consumption rate of no matter what industry or whatever it is, I'm pretty sure that makes it like a huge sum.
• 3:27
  SPEAKER_00: Yeah, absolutely.
• 3:28
  SPEAKER_00: And I think you know, that's gonna be uh a focal point on it's just consumerism, right?
• 3:33
  SPEAKER_00: And people want to do business in the state.
• 3:36
  SPEAKER_02: Right.
• 3:36
  SPEAKER_02: Okay, thank you.
• 3:37
  SPEAKER_02: Yeah.
• 3:37
  SPEAKER_02: All right, so let's dive into why the U.S.
• 3:40
  SPEAKER_02: still stands out.
• 3:41
  SPEAKER_02: We already know a little bit, but you know, let's dive a little bit more.
• 3:44
  SPEAKER_02: So with so many countries competing for foreign investment, companies have more choices than ever when determining where to grow their global footprint.
• 3:53
  SPEAKER_02: Yet the U.S.
• 3:54
  SPEAKER_02: continues to attract significant inbound investment across a wide range of industries.
• 3:58
  SPEAKER_02: So what makes the U.S.
• 4:00
  SPEAKER_02: an attractive destination today and what advantages are foreign parented companies hoping to gain by establishing competitions?
• 4:07
  SPEAKER_00: Right.
• 4:08
  SPEAKER_00: Outside of the obvious, the the huge consumer market, um, I think it boils down to kind of two things, in my mind at least commercial and tax.
• 4:18
  SPEAKER_00: So commercial is more pointed towards the labor market.
• 4:22
  SPEAKER_00: We have a very skilled labor market, whether it be uh white collar, blue collar.
• 4:27
  SPEAKER_00: I think the ability to get capital and raise capital in the states is easier than a lot of other jurisdictions.
• 4:33
  SPEAKER_00: I think you know the investment pool in the states is also very big, right?
• 4:38
  SPEAKER_00: We have all of these e-funds, angel investors, et cetera, that are investing into especially technology, but also more recently manufacturing and distribution ops.
• 4:47
  SPEAKER_00: So that's the commercial side.
• 4:48
  SPEAKER_00: I think the tax side, ever since TCGA, it's been a little bit more favorable from a business or a corporate income tax perspective.
• 4:58
  SPEAKER_00: So there's certain benefits out there, like the foreign-derived intangible income deduction, fitty we'll call it.
• 5:04
  SPEAKER_00: Okay, um, which is very favorable for US manufacturers, US licensors, etc., who are selling or licensing or providing services to non-US persons.
• 5:15
  SPEAKER_00: RD credits, that's a big one.
• 5:17
  SPEAKER_00: Yeah.
• 5:18
  SPEAKER_00: That's something that uh Nina Desai handles for Vennett Thrasher, but uh also a lot of uh state and local incentives.
• 5:24
  SPEAKER_00: Okay, and that's something that D Green handles for us.
• 5:26
  SPEAKER_00: So I think there's just a lot of opportunity in the US to do business, not only from a commercial perspective, but uh from a tax minimization perspective.
• 5:36
  SPEAKER_02: Yeah, and I love those shout-outs because they've also been on the show.
• 5:39
  SPEAKER_02: So thank you.
• 5:39
  SPEAKER_02: And I did have you did mention it's easier to to do business in the U.S.
• 5:44
  SPEAKER_02: Why do you think that is?
• 5:45
  SPEAKER_02: Or what are some factors that make it easier?
• 5:48
  SPEAKER_00: I just I think the barriers to entry are are less than other jurisdictions.
• 5:53
  SPEAKER_00: I mean, you know, I I had a newer client about a month ago reach out and he said, Hey, you know, I've got a UK business.
• 5:59
  SPEAKER_00: We've been providing services in the US.
• 6:01
  SPEAKER_00: We literally just set up our LLC in the US, but now he's running into some issues because he jumped it out a little bit.
• 6:08
  SPEAKER_02: Okay, all right.
• 6:08
  SPEAKER_00: I think I think the barriers to entry are just so minuscule that anybody and everybody can do it.
• 6:14
  SPEAKER_00: Right.
• 6:14
  SPEAKER_00: Um it's just a matter of doing it the right way, which I think.
• 6:17
  SPEAKER_02: You better have that framework right though.
• 6:19
  SPEAKER_02: Yeah, you can you can start easy.
• 6:21
  SPEAKER_02: Right, right.
• 6:22
  SPEAKER_02: Everything else has to be in place.
• 6:24
  SPEAKER_02: All right, so tax is only one part of the equation that we know, and it's easier to assume these decisions are driven primarily by tax planning, but in reality, they are often influenced by a much broader set of strategic business objectives.
• 6:38
  SPEAKER_02: So beyond tax considerations, what operational, commercial, or market-driven factors play the biggest role when companies evaluate whether the US is the right place to invest?
• 6:48
  SPEAKER_00: Yeah, yeah.
• 6:49
  SPEAKER_00: So I we we we touched on it in the last question.
• 6:52
  SPEAKER_00: I think, you know, the the skilled labor market, that's obviously very attractive to foreign investors.
• 6:58
  SPEAKER_00: Granted, you know, that market might cost a little bit more than you know, our cohorts in India or Europe or wherever.
• 7:05
  SPEAKER_00: But the labor market is very skilled and very attractive here.
• 7:08
  SPEAKER_00: Yeah.
• 7:08
  SPEAKER_00: Second is proximity to customers.
• 7:10
  SPEAKER_00: Touched on it before, we'll touch on it again.
• 7:12
  SPEAKER_00: I think not only having that marketability to US customers, but being close to them and having them be able to get their product next day or same week instead of you know waiting three weeks from uh uh what's the Chinese brand that sells all the really cheap stuff?
• 7:29
  SPEAKER_00: Sheen.
• 7:30
  SPEAKER_00: Sheen, right?
• 7:31
  SPEAKER_02: Yeah, something like that.
• 7:32
  SPEAKER_00: So you gotta wait three or four weeks and it's a good thing.
• 7:34
  SPEAKER_00: Yeah, so the logistics are very attractive as well.
• 7:37
  SPEAKER_00: Yeah, logistics.
• 7:39
  SPEAKER_00: And I think on top of that, it's brand recognition, right?
• 7:43
  SPEAKER_00: People buy for the most part.
• 7:45
  SPEAKER_00: I think people buy what they trust and they solicit services from those that they trust.
• 7:51
  SPEAKER_00: So if you build that brand in the states, it's not just a you know, four or not brand that's selling their product drop shipping to the states.
• 7:59
  SPEAKER_00: Yeah.
• 7:59
  SPEAKER_02: And you're like, where'd this brand come from?
• 8:01
  SPEAKER_02: They pop up overnight.
• 8:02
  SPEAKER_00: And I know we're all guilty of that.
• 8:04
  SPEAKER_00: I mean, I've done it.
• 8:04
  SPEAKER_00: I'm like, I need something cheap and you know, I can I can wait and see what's been quick.
• 8:08
  SPEAKER_00: Right.
• 8:09
  SPEAKER_00: Um, but I think that brand recognition and really building that in the states is attractive to these businesses that are trying to inbound or expand their global reach.
• 8:18
  SPEAKER_02: Okay.
• 8:18
  SPEAKER_02: Thank you, Matt.
• 8:20
  SPEAKER_02: Okay, so getting the structure right is the next topic that we want to just dive into a little bit.
• 8:25
  SPEAKER_02: So one of the earliest and most important decisions companies make is how they establish their US presence.
• 8:32
  SPEAKER_02: Kind of touched on a little bit with brand recognition.
• 8:34
  SPEAKER_01: Yep.
• 8:34
  SPEAKER_02: The structure they choose can have lasting implications for taxes, legal obligations, financing, and future growth.
• 8:41
  SPEAKER_02: So, what are some key factors companies should evaluate when determining the right structure for their US entity or operations?
• 8:48
  SPEAKER_02: And how can those early decisions affect long-term success?
• 8:52
  SPEAKER_00: Yeah, I mean, I think the starting point is always what is the business doing?
• 8:56
  SPEAKER_00: Yeah.
• 8:57
  SPEAKER_00: And where does it see itself in five, 10 years?
• 9:01
  SPEAKER_00: Okay.
• 9:01
  SPEAKER_00: I think those are very important questions to ask up front because that really drives how you want to structure your investment in the US.
• 9:08
  SPEAKER_00: So we want to be asking questions, you know, what are we selling into the US?
• 9:11
  SPEAKER_00: What are we selling in general?
• 9:13
  SPEAKER_00: Um, what kind of services are we providing?
• 9:15
  SPEAKER_02: Does it make sense in the US?
• 9:16
  SPEAKER_02: Because some products, even if they brand it a certain way, it has to look a little bit different and be attractive to each.
• 9:23
  SPEAKER_02: Yeah.
• 9:23
  SPEAKER_02: Yeah.
• 9:24
  SPEAKER_00: And, you know, does it uh I think maybe the first question is does it even make sense to have some sort of legal presence in the US?
• 9:30
  SPEAKER_00: I've had clients that set up a US branch or US op years ago and they did nothing with it.
• 9:37
  SPEAKER_00: And you know, it takes time and money to resolve that and terminate that business.
• 9:41
  SPEAKER_00: So I think that's a good kind of starting question.
• 9:44
  SPEAKER_00: And then once we've cleared that hurdle, the next question is what are we doing and how do we want to operate in five, 10 years time?
• 9:52
  SPEAKER_00: Right.
• 9:52
  SPEAKER_00: Um and I think that really that really drives the operational planning of, you know, are we gonna have employees in the US?
• 10:01
  SPEAKER_00: Are we gonna have an office?
• 10:03
  SPEAKER_00: If so, what does that look like from a tax perspective?
• 10:06
  SPEAKER_00: Yeah.
• 10:06
  SPEAKER_00: I see foreign investors that have what's called a permanent establishment in the US, and they don't know that.
• 10:13
  SPEAKER_00: Um, and that creates just a bunch of complexity from a US tax perspective.
• 10:17
  SPEAKER_02: And can you elaborate on what that is?
• 10:20
  SPEAKER_00: It it it changes jurisdiction to jurisdiction.
• 10:23
  SPEAKER_00: Okay, um, but generally speaking, it's having employees or in some instances contractors in the US, got it.
• 10:30
  SPEAKER_00: Um, or a physical presence.
• 10:31
  SPEAKER_00: Okay.
• 10:31
  SPEAKER_00: It's not necessarily just selling product into the US.
• 10:34
  SPEAKER_00: Um there's different thresholds and various treaty language with different jurisdictions.
• 10:40
  SPEAKER_00: Um but generally speaking, if you have that PE in the US, it it gets complicated from a US tax perspective.
• 10:48
  SPEAKER_00: And it can be more costly than just having your standard U.S.
• 10:51
  SPEAKER_00: disregarded entity or U.S.
• 10:53
  SPEAKER_00: corporation.
• 10:54
  SPEAKER_00: So we really try to plan in advance on how we want to structure that.
• 10:57
  SPEAKER_02: Got it.
• 10:58
  unknown: Okay.
• 10:59
  SPEAKER_02: So when you just brought in planning, so planning before problems arise.
• 11:04
  SPEAKER_02: So many companies focused on getting into the U.S.
• 11:07
  SPEAKER_02: market quickly.
• 11:08
  SPEAKER_02: Can think kind of touched on it with another client.
• 11:11
  SPEAKER_01: Right.
• 11:11
  SPEAKER_02: Um, but decisions made before operations begin often determine whether expansion goes smoothly or creates costly challenges.
• 11:20
  SPEAKER_02: So, what planning opportunities should businesses address before making an inbound investment?
• 11:25
  SPEAKER_02: And where do you most often see companies wishing they had planned differently?
• 11:29
  SPEAKER_00: Yeah, yeah.
• 11:29
  SPEAKER_00: I made a little list of five points here.
• 11:32
  SPEAKER_00: Yeah, let's go.
• 11:34
  SPEAKER_00: I didn't want to miss anything.
• 11:35
  SPEAKER_00: So first and foremost, I think entity selection and operating model.
• 11:40
  SPEAKER_00: So kind of what we touched on before is you know, what type of entity from a US tax perspective makes the most sense for your business?
• 11:48
  SPEAKER_00: Um, majority of the time I'm planning my clients into a US C Corp.
• 11:52
  SPEAKER_00: I just think it's the most favorable, but that's obviously fact dependent.
• 11:56
  SPEAKER_01: Yeah.
• 11:56
  SPEAKER_00: Two is repatriation planning.
• 11:58
  SPEAKER_00: So foreign investors obviously want to get their money back in the future.
• 12:02
  SPEAKER_00: So what makes most sense from a dividend perspective, or do we want to finance it with debt and kind of exploit some different rates on that?
• 12:10
  SPEAKER_00: Uh third is transfer pricing.
• 12:12
  SPEAKER_00: That's maybe a little bit further down the road once operations have gotten off the ground.
• 12:17
  SPEAKER_00: But very important from a compliance and from a planning perspective is to have the right transfer pricing model in place.
• 12:23
  SPEAKER_01: Okay.
• 12:23
  SPEAKER_00: Fourth is something that um I am not well versed in, but it's state and local tax.
• 12:28
  SPEAKER_02: But you know it's there and then it is on that list.
• 12:30
  SPEAKER_00: I know it's there and I know who to call.
• 12:32
  SPEAKER_02: Yeah.
• 12:33
  SPEAKER_00: Um state and local tax is a big ticket item, right?
• 12:36
  SPEAKER_00: I think um a lot of foreign investors will just kind of willy-nilly go into whatever or incorporate in whatever state they you know they see fit, but it's not always the most favorable outcome.
• 12:48
  SPEAKER_00: In addition to that, they may have nexus or exposure in multiple states and not know it.
• 12:53
  SPEAKER_00: So more complexity, more cost, um, more liability.
• 12:59
  SPEAKER_00: So I think thinking about inbound investment from a state and local perspective, not just a federal perspective up front, is of the utmost importance.
• 13:10
  SPEAKER_00: Um and then last is you know, your general payroll, employment tax, anything and everything surrounding more of the legal um and the employment.
• 13:18
  SPEAKER_00: I think that's another consideration.
• 13:20
  unknown: Okay.
• 13:20
  SPEAKER_02: Thank you, Matt.
• 13:23
  SPEAKER_02: All right.
• 13:23
  SPEAKER_02: So let's dive into the challenges companies don't expect.
• 13:26
  SPEAKER_01: Yeah.
• 13:27
  SPEAKER_02: So even experienced multinational organizations can underestimate the complexity of entering a new market.
• 13:33
  SPEAKER_02: What appears straightforward on paper can quickly become much more complicated in practice.
• 13:38
  SPEAKER_02: What are some of the most common surprises or pitfalls company encounter after establishing U.S.
• 13:44
  SPEAKER_02: operations and how can they proactively avoid them?
• 13:48
  SPEAKER_00: I think first and foremost is probably the complexity of the U.S.
• 13:53
  SPEAKER_00: tax system and the state and local tax system.
• 13:56
  SPEAKER_00: Anytime you have an inbound investment, I think that just adds an extra layer of complexity and you have, you know, cross-border taxation, which requires um, you know, a lot more planning than just having a simple, you know, US domicile entity or person that is um you know selling goods to US customers.
• 14:15
  SPEAKER_00: So I think the complexity of the system, I think um kind of piggybacking off that is the compliance burden um from a US tax perspective.
• 14:25
  SPEAKER_00: So anytime you have an inbound investment, more compliance burden.
• 14:29
  SPEAKER_00: Um I think the one kind of hot ticket item that I've seen a lot of lately is uh Forum 5472.
• 14:38
  SPEAKER_00: Um so it's your 25% foreign-owned US Corp informational filing.
• 14:44
  SPEAKER_01: Okay.
• 14:45
  SPEAKER_00: That I see is oftentimes missed by new investors into the US.
• 14:49
  SPEAKER_00: And that one forum carries a$25,000 penalty.
• 14:52
  SPEAKER_02: Well, why do you think that's missed so often?
• 14:55
  SPEAKER_00: I just it's a good question.
• 14:57
  SPEAKER_00: I mean, I think you know, the investors are so focused on getting the business off the ground that maybe they're not speaking to the right tax advisors on the front end.
• 15:08
  SPEAKER_00: Um, international taxation is relatively niche, um, not completely niche, but it's it's a little bit different than your standard US income tax.
• 15:18
  SPEAKER_00: Um so I think and we'll probably talk about this a little bit more later, but getting the right people up front.
• 15:25
  SPEAKER_00: Yeah.
• 15:25
  SPEAKER_00: And that kind of leads into my next point is so I think the third item of complexity that people need to consider is is just general US law.
• 15:36
  SPEAKER_00: So getting the right attorneys involved, making sure that your inbound investment is set up from a legal perspective uh the correct legal perspective in the first place, just like it should be from a tax perspective.
• 15:47
  SPEAKER_02: Yeah.
• 15:48
  SPEAKER_02: Okay.
• 15:49
  SPEAKER_02: So let's talk about the ripple effect across the organization.
• 15:53
  SPEAKER_02: So you kind of teed it up for me.
• 15:55
  SPEAKER_02: So an inbound investment isn't simply a tax project, it touches finance, legal, HR, operations, treasury, and executive leadership.
• 16:05
  SPEAKER_02: Success often doesn't depend on how well these functions work together from the beginning.
• 16:09
  SPEAKER_02: So, how important is cross-functional planning during an inbound investment?
• 16:13
  SPEAKER_02: And what does an effective collaboration between tax and business leadership look like?
• 16:18
  SPEAKER_00: Yeah, it's it's critical.
• 16:19
  SPEAKER_00: I mean, I think Absolutely.
• 16:22
  SPEAKER_00: You know, I think it's understanding the business from a commercial perspective uh first, and then understanding from a tax perspective.
• 16:30
  SPEAKER_00: So, you know, we're not just advising our clients on US tax, we're trying to help them as much as possible from a commercial perspective.
• 16:37
  SPEAKER_00: You know, going back to my my point in the previous question, I think it's just getting the right people in the room up front.
• 16:42
  SPEAKER_00: So you know, making introductions to the wide network of trusted attorneys that we work with, or if you know it's an individual that's looking unbounding, um, getting them set up with a wealth advisor.
• 16:55
  SPEAKER_00: Um I think there's a variety of different yet similar professions that need to be in the room up front when we're talking about these issues.
• 17:05
  SPEAKER_02: Got it.
• 17:06
  unknown: Okay.
• 17:06
  SPEAKER_02: So looking ahead, the global business environment continues to evolve with changing tax policies, trade dynamics, supply chain strategies, and economic uncertainty all influencing investment decisions.
• 17:19
  SPEAKER_02: So as you look over the next several years, what trends do you believe have the biggest impact on inbound investment into the U.S.
• 17:26
  SPEAKER_02: and how should businesses begin preparing for it?
• 17:31
  SPEAKER_00: I wish I had a crystal ball.
• 17:33
  SPEAKER_02: Right.
• 17:33
  SPEAKER_02: You like do this, this, and the Yeah, right?
• 17:36
  SPEAKER_00: Because then uh everyone would be calling me.
• 17:39
  SPEAKER_00: You know, I think um just growing up as a tax professional, I think number one is does the US continue to be an attractive market for foreign investors from a tax perspective, right?
• 17:54
  SPEAKER_00: Do we um unravel or unroll some of those more corporate tax favorable attributes that we've seen as part of tax reform?
• 18:02
  SPEAKER_00: So I think that's number one.
• 18:05
  SPEAKER_00: Number two is probably how not just the US tax system changes in the future, but how the global tax system changes.
• 18:13
  SPEAKER_00: Whether or not Pillar Two is gonna evolve and expand and um affect us in any negative way.
• 18:20
  SPEAKER_00: I just don't know.
• 18:21
  SPEAKER_01: Yeah.
• 18:21
  SPEAKER_00: Um I mean, outside of that, it's kind of the hot ticket.
• 18:25
  SPEAKER_00: Well, maybe it's not the hot ticket item right now, but it was a year ago, is supply chain disruption, tariffs, yeah.
• 18:31
  SPEAKER_00: Um anything and everything going on with the global market, whether or not we strike a deal with Iran on opening up the Strait of Hormuz, I think that can change things pretty drastically and pretty quickly.
• 18:42
  SPEAKER_02: Okay.
• 18:43
  SPEAKER_02: More favorable from a commercial perspective, absolutely.
• 18:49
  SPEAKER_00: Yeah.
• 18:49
  SPEAKER_00: And how that trickles into tax, um, I just don't know.
• 18:52
  SPEAKER_00: I think it, you know, it all depends on how our tax system might change in the future.
• 18:57
  SPEAKER_02: Got it.
• 18:58
  SPEAKER_02: Okay.
• 18:59
  SPEAKER_02: Thank you.
• 18:59
  SPEAKER_02: So let's dive into the advisor's perspective.
• 19:03
  SPEAKER_02: You work with companies navigating these decisions firsthand, giving you a unique perspective on what separates successful investments from those that struggle.
• 19:11
  SPEAKER_02: So when you look across successful inbound investments, what common characteristics or best practices consistently lead to better outcomes?
• 19:20
  SPEAKER_00: It's planning, just planning, planning, planning.
• 19:23
  SPEAKER_00: Um it's getting on the phone with your prospect or your client, it's hooking them up with an attorney if they need one.
• 19:30
  SPEAKER_00: It's introducing them to tax or legal professionals and other jurisdictions if they need to.
• 19:37
  SPEAKER_00: Um I really just think it's taking a step back, being patient, having the right discussions with the right people, and making sure that from step one, we're advising from a just a proper perspective.
• 19:51
  SPEAKER_00: Um getting them set up for success instead of retroactively saying, Oh, you missed these filings, you you know, structured into this uh the incorrect way.
• 20:01
  SPEAKER_00: Yeah, I think that that is of utmost importance.
• 20:06
  SPEAKER_02: Yeah.
• 20:06
  SPEAKER_02: And then if it's always great to have everybody in place in the beginning because it can prevent delays when you're actually trying to launch or whatever the goal is for the company.
• 20:16
  SPEAKER_00: Yeah, I mean it's a good point.
• 20:18
  SPEAKER_00: Like, you know, our clients aren't tax people, right?
• 20:21
  SPEAKER_00: They're they're selling, they're selling themselves or a product or a business.
• 20:26
  SPEAKER_00: Um, they don't want to focus on tax.
• 20:29
  SPEAKER_02: I don't really shouldn't.
• 20:30
  SPEAKER_02: If you're not the expert, I don't I don't agree.
• 20:32
  SPEAKER_02: Like you probably shouldn't be doing that.
• 20:35
  SPEAKER_00: No, but but they don't want to be I don't want to say wasting time, but they don't want to be wasting their time with tax, right?
• 20:41
  SPEAKER_00: They want to be growing their business, they want to be exploiting the market, they want to be meeting new people.
• 20:46
  SPEAKER_00: Um, they certainly don't want to spend all their time on the phone with me.
• 20:50
  SPEAKER_00: Um so you're like, but I'm gonna get it done.
• 20:53
  SPEAKER_00: Yep, yep, yep.
• 20:55
  SPEAKER_02: All right.
• 20:56
  SPEAKER_02: So final thoughts.
• 20:57
  SPEAKER_02: For executives considering a U.S.
• 20:59
  SPEAKER_02: expansion, there's a lot of information and plenty of uncertainty to navigate before making a major investment decision.
• 21:06
  SPEAKER_02: So if you could leave business leaders with one piece of advice before they begin planning an inbound investment to the US, what would it be and why?
• 21:14
  SPEAKER_02: I know you kind of like touched on this a second, but maybe there's another one in that.
• 21:17
  SPEAKER_00: Yeah, maybe I'm maybe I'm a broken record.
• 21:19
  SPEAKER_00: But you know, I think I think treating the inbound investment as an enterprise-wide business decision first, then as a tax decision.
• 21:31
  SPEAKER_00: Got it.
• 21:31
  SPEAKER_00: You know, I think if if there is an opportunity to exploit the US market or the US tax system from a foreign investor, we can model that out.
• 21:42
  SPEAKER_00: Um we can do that proactively as opposed to just jumping into a US business and saying, okay, let's model it out now.
• 21:50
  SPEAKER_00: Yeah.
• 21:50
  SPEAKER_00: Um and this is my broken record point, but it's keeping the point home.
• 21:56
  SPEAKER_00: It's getting the right people in the room at the right time.
• 21:59
  SPEAKER_00: Right.
• 21:59
  SPEAKER_00: So step one, get all your ducks in a row, get the professionals in place, um and really listen to what they have to say.
• 22:07
  SPEAKER_00: And you know, I'm serving my clients in their best interest.
• 22:10
  SPEAKER_00: And at the end of the day, you know, I don't just want to serve my clients from a tax perspective.
• 22:14
  SPEAKER_00: That's obviously my profession, but I want to make sure that their businesses are successful, they're seeing success, uh, because their success only allows me to continue supporting them.
• 22:26
  SPEAKER_00: Right, exactly.
• 22:27
  SPEAKER_00: Supporting them.
• 22:28
  SPEAKER_02: Awesome.
• 22:28
  SPEAKER_02: Well, thank you, Matt, for being on the show today.
• 22:31
  SPEAKER_02: I hope to see you back.
• 22:32
  SPEAKER_02: I hope our listeners got a lot of insights and have everything in place before they try to think about branching into the U.S.
• 22:40
  SPEAKER_02: So I appreciate all your insights.
• 22:42
  SPEAKER_02: Thank you.
• 22:42
  SPEAKER_00: Thanks for your time.
• 22:43
  SPEAKER_00: Awesome.
• 22:45
  SPEAKER_02: That wraps up today's conversation with Matt Pellecrom.
• 22:48
  SPEAKER_02: As the global tax landscape continues to evolve, foreign parented companies are taking a fresh look at investing in the United States.
• 22:56
  SPEAKER_02: While tax considerations remain important, successful inbound investment also depends on thoughtful planning across operations, legal structure, financing, and long-term business strategy.
• 23:08
  SPEAKER_02: Taking a proactive, holistic approach can help organizations position themselves for sustainable growth in an increasingly complex global environment.
• 23:18
  SPEAKER_02: Thanks for tuning in to Beyond the Ledger.
• 23:20
  SPEAKER_02: For more insights and expert perspectives, visit btcpa.net and explore our latest resources.
• 23:26
  SPEAKER_02: And don't forget to like, follow, share, and subscribe.
• 23:29
  SPEAKER_02: Until next time, I'm Sarday Layfield, and we'll see you for the next conversation.