Key Considerations for CPA Firms Advising Clients on U.S. Business Expansion

As global conversations around tariffs intensify, many businesses are asking, “We know we need to move to the U.S. Where should we start?” A common follow-up question from business leaders is, “What state offers the lowest taxes?” However, as trusted advisors, CPA firms should recognize that the decision-making process involves much more than simply identifying the state with the lowest tax rate.

The initial discussion with clients may start with Location Advisory Services. Trusted advisors should consider stepping back and analyzing the project from a broader perspective, focusing on key operational needs rather than just cost. By considering essential factors such as job skills, wage thresholds, connectivity to suppliers, and utility inputs, advisors can guide their clients toward locations that provide the best fit for their business model. Engaging a knowledgeable site selection advisor early in the process allows clients to optimize their location choices, maximize incentive opportunities, and mitigate risks associated with new operations.

However, the conversation should not stop there. It’s important to explore other factors, such as global business structuring and transfer pricing studies. These considerations help maximize operational efficiency and minimize international tax risks. Establishing a presence in the U.S. comes with various compliance obligations that depend on the chosen legal structure. Therefore, it is essential to evaluate all available options to design an optimal business ecosystem that aligns with the needs of multinational entities.

For clients with existing operations in the U.S., the scenario changes. An established presence provides an opportunity to mitigate tariff impacts, offering a strategic edge in global trade. Intercompany transactions also enable companies to make adjustments through transfer pricing, increasing flexibility and potential cost savings.

Implementing a well-structured global transfer pricing framework adds another layer of strategic benefit. By aligning local operations with overarching company goals, businesses can streamline compliance efforts and enhance their financial structures through effectively managed transfer pricing policies. This approach helps in reducing tax liabilities and creates an efficient business model, enabling businesses to adapt more readily to the ever changing regulatory landscape, especially tariffs.

As CPA firms advise their clients, it’s essential to remember that business growth and expansion do not follow a one-size-fits-all model. Strategic partnerships with trusted advisors should be established early in the decision-making process. By working collaboratively, exploring all tax strategies, and devising a solid location advisory plan, CPA professionals can help their clients make informed expansion decisions.

Moreover, these decisions should not be treated as one-time events. Ongoing reviews and continuous input from trusted advisors are vital for overcoming challenges. Advisors should encourage clients to maintain regular communication to monitor progress, anticipate potential roadblocks, and leverage networks of other experts to strategically and successfully establish new operations in the United States. This proactive approach is key to achieving long-term success rather than focusing solely on immediate outcomes.

If you have any questions about how U.S. expansion, location choices, or global business structuring could impact your client’s operations, please reach out to our Location Advisory Services or Global Business Services teams.