Providing Solutions For International Business Transactions

Attorneys at Palmer & Manuel have decades of experience advising diverse clients on entity formations and transactions that involve complex cross-border issues and considerations. We assist with initiatives as close as Canada and Mexico, as well as in more distant locations in Latin America, Europe, Asia and the Middle East. Our knowledgeable business and tax lawyers have the right balance of technical experience and cultural awareness to bring cross-border transactions to efficient, well-structured conclusions.

We base our recommendations on thorough analysis of clients' specific needs and risks, and we diligently align our efforts with their critical objectives. Our skills and capabilities cover the spectrum of matters such as:

  • Commercial agreements involving entities from different countries. In addition to addressing issues common in domestic transactions, decisions will need to be made as to such matters as: (1) Which country's laws will apply? (2) How will any disputes that might arise under the agreement be handled?, and (3) Where will the dispute be addressed?
  • Formation of United States subsidiaries of foreign entities. Entities formed in the U.S. are most commonly created under the laws of a specific state. We offer counsel on which state will be most advantageous based on each client's unique goals.
  • Formation of foreign subsidiaries of United States entities. Entities operating outside the U.S. are typically created under the laws of a foreign jurisdiction. Although the names often differ, most foreign jurisdictions allow formation of entities similar to corporations, limited partnerships and limited liability companies.

Reliable, Insightful Counsel On Cross-Border Tax Issues

Key issues in the formation and subsequent operation of an entity in another country include the structure upon formation and the tax cost of subsequent repatriation of earnings. It is also essential to consider taxation of transactions occurring in the ordinary course of business. The United States has a substantial treaty network that will govern many aspects of such transactions. Similarly, the U.S. as well as most countries have detailed rules concerning transfer pricing. These transfer pricing rules regulate the income that is recognized in a given jurisdiction based upon the economic value of the part of the transaction taking place in that jurisdiction.

Permanent Establishment Rules Determine Tax Obligations

It is important to identify when the activities of a foreign entity in the U.S., or a U.S. entity conducting business activities in a foreign country create a tax reporting obligation in that country. Alternatively, clients should consider conducting activities in such a manner as to avoid the finding of a permanent establishment.

The attorneys at Palmer & Manuel have significant experience interpreting permanent establishment rules in various jurisdictions, and we will help you protect your profitability and overall interests. We invite you to view a presentation by attorney James E. McClain on considerations, benefits and risks associated with permanent establishment.

International Business Transactions: Find Out More

Based in Dallas, Texas, our law firm provides counsel and representation to multinational companies across many industries and market sectors. Call us at 214-242-6444 or contact our attorneys online.