| GLOBAL MOBILITY
US - OKLAHOMA
KEY TAKEAWAYS
Risk and opportunity in a shifting US market
Complex regulatory landscape: Navigating U.S. regulatory compliance involves understanding multi-level laws (federal, state, city, and county) with varying nexus rules. Businesses must address employment, tax, and data protection requirements to avoid violations. Strategic support from service providers: Expert advisors can optimise tax structures, mitigate risks, and offer tailored solutions for entering U.S. markets. Collaboration among experienced providers ensures smooth and creative problem-solving for complex challenges. Opportunities amid global shifts: Despite rising protectionism, globalisation offers growth prospects. Businesses can leverage favorable trade structures, technological advancements enabling global talent, and opportunities in politically stable or high-risk environments. Careful planning and risk management are essential.
Haley Legg is the Audit & Assurance Division Leader of CCK Strategies, PLLC. She is a Certified Public Accountant, Certified Internal Auditor, and Certified Fraud Examiner. She is a graduate of the University of Central Oklahoma, obtaining a BS in Accounting and a BBA in Finance. Haley fosters an interest in international matters throughout her work and broadens her network and expertise by membership in IRG, as well as serving on the Board of Global Oklahoma Connect.
world, globalisation continues to play a significant role in the global economy. In the U.S., for example, 95% of potential customers still reside outside the U.S. These changes create some barriers, but also opportunities for businesses willing to explore creative solutions. With the election of Donald Trump to a second term as U.S. President, it is anticipated that there will be an increase in tariffs on imported goods. However, these tariffs will not apply to all countries or to all services. Structuring transactions that maximise these opportunities – importing to the U.S. from a country that is favorably taxed, working with joint ventures to offer consulting or management services, etc. can provide ways to continue doing business in the U.S. without the high tariff impact. Changes in technology allow many employees to work nearly anywhere in the world. While this can create additional concerns for payroll,
employment, and taxes, it opens doors for a greater candidate pool when making hiring decisions. It creates the opportunity for almost continuous work in some cases: employees in India can work when U.S. employees are not, and then the reverse, keeping projects on a continuous forward trajectory. When the political and economic environment are less stable, there is a greater return for those willing to take the risks and navigate the associated complexities. While this may reduce the number of businesses willing to engage in cross-border business activity, it also creates unique opportunities for those willing to take the necessary steps and risk. Navigating the ever-changing environment of doing business in an international economy requires careful consideration, engaging the right service providers and networks, and identifying the acceptable risk and return that a company needs.
Eric Kunkel Founding Partner, Haley Legg Audit & Assurance Division Leader CCK Strategies, PLLC
C ross-border mobility in the US is an issue that requires careful planning and consideration. Navigating the regulatory environment can be difficult and businesses must consider compliance with employment and tax laws that are at multiple jurisdictional levels including Federal, State, City, and County. Nexus determination varies in each. In some cases, an employee in the jurisdiction creates nexus, and in others revenue, or a physical presence. There is no one rule that will determine nexus in all jurisdictions across the U.S. How business is done in the US, or even from one state to another, from a cultural perspective may not be the same as other areas of the world. What is customary practice in some locations could be considered illegal. Unions, and their presence or absence, should also be considered. Regulations on information technology also differ across jurisdictions. Understanding
what is required and what is still considered a best practice is important to ensure violations do not occur related to employee and customer data. Service providers play a crucial role in helping businesses navigate the complexities of global mobility. They can offer expert advice on laws and regulations, particularly related to employment and taxes. Providers can assist in creating corporate structures that maximise results and manage risks associated with entering a new jurisdiction. Providers such as CCK Strategies, PLLC can offer a variety of solutions for corporate structures to help with tax risk management, managing effective tax rate efficiencies across U.S. States, optimising the provisions of international Tax Treaties, and recommend providers in other areas. Providers can also help identify and mitigate risks associated with entering a new jurisdiction. Risk mitigation may include using outsource solutions,
+1 (918) 491 4036 haley@cckcpa.com irglobal.com/advisor/haley-legg-cpa
hiring solutions, insurance policy considerations, and identification of alternatives to meet specific needs and goals. Service providers can often provide creative solutions that address multiple areas of concern. Finding a provider who is willing to engage in extensive discussion, identify core goals and values of a business, and design the right solutions is critical for success. Finding a team of advisors that can work in harmony will make the process easier for a business entering a market. These providers may have worked together on other projects and have a rhythm that allows creative solutions to flow freely. Globalisation on the wane? Political events create new opportunities. Some people may consider globalisation to be in decline. While there are signs of a shift towards protectionism and nationalism in some parts of the
Eric Kunkel is a Founding Partner of CCK Strategies, PLLC. As an appointed member of the Oklahoma District Export Council by the U.S. Secretary of Commerce, and its Vice-Chair, Eric has led CCK’s work with clients in export and international services areas. CCK has received the following recognition: 2023 and 2016 Governor’s Award for Excellence in Exporting; 2020 President’s “E” Star Award for Export Service Recipient; 2017 U.S. SBA Exporter of the Year State of Oklahoma & Region VI; and2016 President’s “E” Award for Export Service Recipient.
ABOUT US...
cckcpa.com
CCK Strategies, PLLC provides audit, accounting, tax, and business consulting services to entrepreneurial middle-market and smaller business clients in all 50 U.S. States and across over 25 international jurisdictions. Using a team located in several U.S. States and four other countries, CCK is familiar with navigating cross- border mobility.
“Changes in technology allow many employees to work nearly anywhere in the world.”
+1 (918) 491 4036 Eric@cckcpa.com irglobal.com/advisor/eric-kunkel
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