Season 2 Episode 11: U.S. Inbound Tax Strategy: Entity Choice, Treaties, and More

U.S. Inbound Tax Strategy: Entity Choice, Treaties, and More
In this episode, International Tax Counsel William Roberts breaks down the fundamentals of "Inbound 101" for foreign companies looking to invest or expand into the United States. Together, they untangle the complexities of U.S. tax structures, explaining how entity choice, permanent establishment rules, and treaty benefits impact daily operations and profit repatriation. From navigating passive withholding to avoiding real estate pitfalls under FIRPTA, this conversation provides a straightforward roadmap for protecting your global bottom line.

In this episode, we discuss:

• 0:00 - Introduction 
• 1:05 — Choosing the Right Legal Entity for US Expansion 
• 02:22 — Corporation vs. Flow-Through Entities 
• 04:33 — Branch Compared to a Blocker: What’s Better?  
• 07:28 — Passive Investing vs. Having a "US Trader Business" 
• 09:27 —Characteristics of Being a Trader Business  
• 12:48 — Effectively Connected Income from Cash Flow 
• 14:48 — Defining "Permanent Establishment" Under Tax Treaties
• 17:31 — The Strategy of Filing a Protective Tax Return 
• 19:31 — Treaty vs. Non-Treaty Countries (Colombia vs. France)
• 22:57—  Favorable Treaties 
• 25:35 — Cash Repatriation, FDAP, and Withholding Compliance.
• 29:51 — Foreign Real Estate Investment & FIRPTA Rules
• 34:02 — Workarounds, Exceptions, and Foreign Pension Funds 
• 36:54 — Key Takeaways