Running a business can be a rewarding experience for many entrepreneurs. While running a domestic business can be a significant challenge, operating a business internationally comes with a variety of issues. Fortunately, many of the challenges associated with running a business internationally can be resolved through preparation and attention to detail. The following guide provides simple tips and tricks on how to successfully operate a business internationally.
When operating a business internationally, it’s important to make sure that your company complies with all rules and regulations for all countries where it has a physical presence. If you’re mailing a product from a warehouse in the United States to a consumer in South America, it’s usually not necessary to comply with any specific laws outside the United States, excluding tariff regulations.
In most cases, you’ll only have to pay taxes in the area where a business has its headquarters. If you’re located in the United States and selling a product in the United Kingdom, you won’t have to pay the Value Added Tax (VAT) found in the commonwealth. However, this can vary based on a variety of rules.
When cash is returned from overseas, it may have to be taxed. While the current White House administration is relatively lenient when it comes to the repatriation of overseas business capital, there can be situations where returning cash to the United States can be very expensive.