Staying on the Right Side of Uncle Sam
Expanding your business into a new country is one of the biggest steps for a small business owner. In fact, it is a major event for any business and it requires meticulous planning to get right. Often, getting started can be the hardest part, so we’re going to explain the best way to take the first step when it comes to expanding your business stateside.
Today, we’re discussing practical advice for vacation rental owners looking to expand their operation into the United States. It may not be glamorous, but it is inevitable. Tax. The US has clear regulations covering anybody looking to start operating a business in America and vacation rental owners can’t ignore them. To start operating in America, you will need to obtain an ITIN. This is an Individual Tax Identification number. You need an ITIN before you start to earn income from any properties in the US so it’s best to obtain it before you do anything else. This can be obtained without a social security number and is available to residents and non-residents alike so you can get this obstacle out of the way early.
Having the red tape taken care of before you even arrive gives you the best possible start to the international success of your business. Making errors with taxation is a costly mistake that could have serious implications on your potential business. Get it right first time with our guide to getting your ITIN:
The first step is to obtain the Form W-7 and fill it in, sending in original versions of your identity documents. You can post this form, but it does need to be sent with your original documents, which can be a risk. If you send your passport, you do not need to send any other documents alongside it, otherwise you need to send a combination the prove your identity and your foreign status. You can get this form, as well advice and help completing at US embassies in London, Paris and Frankfurt. You can find their address and contact details here. If you’re not in the position to head to these embassies, you can use a third party service such as Acceptanceagentservices.com to take care of this for you. It may not sound exciting. In fact, it may sound outright dull but getting your ITIN just gives you that impetus to move onto the next step of your journey towards world domination. And, using a certified agent will take out the hassle and stress of application and make sure you get it right. First time.
Tax is nobody’s favorite part of running their business. It is expensive, time-consuming and can be a real problem if you get it wrong. We’re not going to pretend that this will be one of the more glamorous events in your career but, breaking ground in one of the most exciting and profitable markets for vacation rental properties in the world, will be. Getting the right documentation early on will save you time and stop potential problems further down the line. Choosing the right agency to help you means you that you get your business in America off to the best possible start.
Let us know your experiences with renting properties in America!