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Moving British Business to the US

Moving British Business to the US

Old Apr 13th 2009, 10:02 am
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Default Moving British Business to the US

We have a decent sized business in the uk (hair and beauty wholesalers).

How easy is it to move this business to the US? (more specifically california)

What visas and paperwork do we need?


In the UK, we pay 15% of our total annual turnover to the VAT man, then we pay 20% corporation tax on the rest, so overall, we pay 35% to the government of our total yearly turnover.

This is one of the main reasons for us wanting to relocate to california.

So what would the total tax be over there? (I heard it was near 10%, but are there any other taxes to consider?)


What other advice do people have of moving their business to america?


Thanks in advance
Daz
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Old Apr 13th 2009, 10:31 am
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Default Re: Moving British Business to the US

I was reading your post about the oppressive taxation in the UK and was following where you were headed. I nearly fell out of my chair when you said you wanted to move to California to *avoid* taxes. California may give the UK a run for its money in the taxation game. Another thing to consider is that the US doesn't have the NHS, so many employers pay a large chunk of health insurance premiums.

http://www.taxfoundation.org/taxdata/topic/15.html
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Old Apr 13th 2009, 10:48 am
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Default Re: Moving British Business to the US

Originally Posted by crg14624 View Post
I was reading your post about the oppressive taxation in the UK and was following where you were headed. I nearly fell out of my chair when you said you wanted to move to California to *avoid* taxes. California may give the UK a run for its money in the taxation game. Another thing to consider is that the US doesn't have the NHS, so many employers pay a large chunk of health insurance premiums.

http://www.taxfoundation.org/taxdata/topic/15.html

Thanks for the reply. Do you have any examples of californian taxes?

i.E:

1) 10% state tax
2) health care insurance = $xxx ?
3) anything else? $xxx ?


Surely the UK's 35% overall taxation is better than california's 10% + health insurance?


Thanks again!
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Old Apr 13th 2009, 1:55 pm
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Default Re: Moving British Business to the US

You have to combine the People's Socialist Republic of Kalifornigrad taxes with the Federal taxes.

According to this article California’s combined top state and federal corporate tax rate is 40.7%.

http://jan.freedomblogging.com/2008/...-disadvantage/

Also, here is a chart comparing US states to foreign countries including the UK.

http://www.ocregister.com/article/ta...483-table-rate
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Old Apr 13th 2009, 3:00 pm
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Default Re: Moving British Business to the US

Not only is there State taxes and federal taxes, but city taxes too.
As well as the insurance costs
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Old Apr 13th 2009, 4:46 pm
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Default Re: Moving British Business to the US

Originally Posted by Daz Williams View Post
In the UK, we pay 15% of our total annual turnover to the VAT man, then we pay 20% corporation tax on the rest, so overall, we pay 35% to the government of our total yearly turnover.
That's funny math.
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Old Apr 13th 2009, 5:04 pm
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Default Re: Moving British Business to the US

Originally Posted by Daz Williams View Post
We have a decent sized business in the uk (hair and beauty wholesalers).

How easy is it to move this business to the US? (more specifically california)

What visas and paperwork do we need?


In the UK, we pay 15% of our total annual turnover to the VAT man, then we pay 20% corporation tax on the rest, so overall, we pay 35% to the government of our total yearly turnover.

This is one of the main reasons for us wanting to relocate to california.

So what would the total tax be over there? (I heard it was near 10%, but are there any other taxes to consider?)


What other advice do people have of moving their business to america?


Thanks in advance
Daz
you post is so wrong.


VAT is not _your_ money, you are just collecting the money and passing it on.

If you think you can save tax by moving to CA then forget it, there is loads of taxes in CA, property tax (heard of those?), state tax.

furthermore, you dont pay _any_ corporation tax if you pay out all your profits as salary.
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Old Apr 13th 2009, 5:05 pm
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Default Re: Moving British Business to the US

Originally Posted by Daz Williams View Post
Thanks for the reply. Do you have any examples of californian taxes?

i.E:

1) 10% state tax
2) health care insurance = $xxx ?
3) anything else? $xxx ?


Surely the UK's 35% overall taxation is better than california's 10% + health insurance?


Thanks again!
heard of federal tax?
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Old Apr 13th 2009, 5:38 pm
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Default Re: Moving British Business to the US

Thanks for the feedback.

If you dont recommend California, what states would you recommend that has a sunny/warm climate all year round?



Thanks.
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Old Apr 13th 2009, 5:52 pm
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Default Re: Moving British Business to the US

Texas... less taxes too for the most part
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Old Apr 13th 2009, 5:52 pm
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Default Re: Moving British Business to the US

Originally Posted by Daz Williams View Post
Thanks for the feedback.

If you dont recommend California, what states would you recommend that has a sunny/warm climate all year round?



Thanks.

Also no matter where you move to in the US as an employer you have to pay the corporations share of social security for each employee, workman's compensation insurance, etc.
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Old Apr 13th 2009, 6:01 pm
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Default Re: Moving British Business to the US

Originally Posted by hobbes79 View Post
Texas... less taxes too for the most part
Florida... I moved here from Texas, unless you want to live in Austin then I wouldnt recommend Texas. Texas have a (i believe it .5%) tax on turnover nomatter if you make money or not.
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Old Apr 13th 2009, 6:24 pm
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Default Re: Moving British Business to the US

Originally Posted by Daz Williams View Post
How easy is it to move this business to the US? (more specifically california)

What visas and paperwork do we need?
If you want to come on an L1, you'll also need to keep the UK business for a good while.
If you want an EB5, you'll need an awful lot of spare dosh to invest.

Low US taxes are a myth BTW. They are just better hidden.
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Old Apr 15th 2009, 12:09 am
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Default Re: Moving British Business to the US

What is your turnover in the UK business, and what would you reasonably expect your turnover versus costs to be in the US (presuming you've worked through these). Perhaps with that information there will be some within the forum that can give you some examples or advice. Just a thought.
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Old Apr 15th 2009, 4:45 am
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Default Re: Moving British Business to the US

Another strike against California, apart from the taxes, is that it is one of the most over regulated places in the universe.

I dread to think what business licenses a "hair and beauty" wholesaler would need in California, and I bet that at least some of the items that you stock and ship are deemed to be "hazardous materials" by some regulatory agency somewhere ...
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