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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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, I'm a UK business owner looking at setting up a branch

Resolved Question:

Hi, I'm a UK business owner looking at setting up a branch in the USA. My question is this:- Can a US Citizen be legally employed by a UK registered company and still work in the USA? If so what are the implications?
Many thanks
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.

Alex J. :

You can have an employee in the USA - the only danger is you, you risk having an establishment in the USA - this means you may then need to pay TAx there or formally registered the company there.

Alex J. :

You would be better off having this person self employed as a sub contractor or sales agent if that is what they do?

Customer:

Ok makes sense thank you.

Customer:

Can I ask author question?

Customer:

another

Alex J. :

No problem

Alex J. :

I am a UK based commercial and company lawyer - I will see if I can assist you.

Customer:

What reason would an american incorporation have for setting up a UK based business and pushing all of their US revenue thought it, to simply the pay that revenue directly back to the US corporation?

Customer:

in addition if they were doing that, would it also make sense to also still run a % of their revenue though the US corporation? This to me doesn't have any logic to it?

Alex J. :

Hi, Thank you - the only reasons I can think is that what you are described is a transfer pricing arrangement - effectively they pay a lower rate of corporation tax in the UK and can claim double taxation treaties in the US so the money wont be taxed twice.

Customer:

sorry thats not clear. I meant to say a % of the US revenue remain with the US business while the rest of the revenue if invoiced through the UK entity

Alex J. :

I am not saying this is necessarily legal though.

Customer:

ok that does make sense. What are you thoughts on the second question?

Alex J. :

A valid transfer price agreement would only be legal if the revenue being pushed to the UK was in relation to the supply of goods and services actually being provided in the UK.

Alex J. :

Also I guess the dollar is strong against the pound at the moment, so it may be in their interest to covert their revenue into UK pounds.

Customer:

right makes a lot f sense! thanks!

Alex J. :

Thank you. Please do not hesitate to contact me if I can assist any further. Any feedback is gratefully received.

Alex J. and other Law Specialists are ready to help you
Expert:  Alex J. replied 2 years ago.
Hi,
Can I assist any further with this?
Kind regards
AJ