International Business and Tax Planning

U.S. clients depend on our advice for their foreign activities, as do foreign individuals and their companies planning investment or business activities in the United States.

Unless a foreigner becomes a U.S. income tax resident, such foreigner is subject to tax only on U.S. source income. There are complex tax laws that determine when a foreigner becomes a "tax resident" for income tax purposes, which subjects their worldwide income to U.S. income taxation. A separate but equally complex set of laws determines when a foreigner becomes a resident for estate, gift and generation-skipping transfer tax purposes ("transfer tax"). When a foreigner becomes a resident for transfer tax purposes, transfers of their worldwide assets during life are subject to taxation as is the value of their worldwide assets at death. A foreigner may become a tax resident for income tax purposes, transfer tax purposes, both taxes or neither tax regardless as to whether such foreigner has established permanent residence for immigration purposes.

If we determine tax residency has already been established, we help clients understand and resolve any non-compliance with minimal taxation, penalties and criminal exposure.

Tax issues do not occur in a vacuum. We are often called upon to assist our inbound clients with other legal and business issues such as:

• choosing and creating the optimal legal structures for limited liability companies (LLCs) and other business entities

• making offers to purchase real estate that become legally binding purchase contracts

• determining legal rights and obligations contained in Letters of Intent and Asset/Stock Purchase Agreements used in connection with buying an existing business

• formalizing legal relationships with partners and joint venturers

• updating trusts and estate planning to provide for an unexpected death or incapacity occurring while in the U.S. and subject to domestic jurisdiction

• coordinating with immigration counsel to avoid premature tax residency without jeopardizing the immigration process

• domesticating or restructuring obsolete "offshore" legal structures

• identifying pitfalls of joint ownership of assets and bank accounts

• assisting with estate planning for elder family members who are not immigrating to the U.S.

• planning for U.S. beneficiaries of foreign trusts and foreign beneficiaries of U.S. trusts

• offering asset protection planning for U.S. assets and income streams

Further, our lawyers assist growing U.S. companies with expanding business operations abroad. We have extensive experience in structuring cross-border financial transactions to minimize Subpart F income and the applicability of the passive foreign investment company (PFIC) rules and to maximize foreign tax credit relief for non-U.S. activities.