New, Lower U.S. Corp Tax Rate Attracts Canadian Business Expansion/Investment

By: Jim Pettinger, President at UCanTrade,Inc.

Canadian businesses and entrepreneurs already have many good reasons to look south for more sales and profits – larger market, wealthier prospects, faster purchasing decisions, favorable exchange rate, favorable cost of housing, strong U.S. economy, tepid Canadian economy, and more and more left-leaning government policy. Now there is another incentive, particularly for those that wish to incorporate or purchase a U.S.-based business. As of January 1, 2018, the maximum U.S. corporate tax rate has been lowered from 35% to 21%. This is not all gravy – there are some offsets – but the potential long term benefit to business owners is significant. Highlights can be found in this Salesforce blog.

According to Darrel Degelman, business advisor at Chinook Mergers, Acquisitions and Business Brokerage, “Many free-enterprise Canadians are strongly considering the benefits of owning and operating a U.S.-based company. For some, this could include cashing in the equity in their home, whereby they might be able to use the cash to fund both the purchase of a business and an equivalent or better new home.”

Greg Boos, immigration attorney at Cascadia Cross-Border Law concurs: “We are increasingly helping Canadians obtain working visas, green cards, and ultimately, dual-citizenship for new business owners and their families. Some begin by simply commuting to their new business in nearby Whatcom County before deciding on anything more permanent.”

This more nearby opportunity is amplified by Tom Dorr, a Bellingham business consultant: “In my twenty-plus years working with small business owners and entrepreneurs, there has never been a more optimistic local business attitude than we are currently experiencing. We are seeing many businesses expanding and hiring more employees at higher wages.”

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

Subscribe to our TradeTips Newsletter for the latest import/export events and trade news, and/or call us at (360) 380-6900.

UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

3PL Third Party Logistics – A Strategic Expansion Partner

Doing Business in the U.S.A.

Successful international business expansion to the United States hinges on thoughtful, well informed pre-planning and reliable cross-border partnerships. Domestic and foreign accountants, immigration and business lawyers, customs brokers and logistics (marketing, warehousing, order fulfillment and distribution) specialists all play key roles in a Canadian company’s export success into the U.S.A. (Cross-border Resources).

Trade laws, regulations and policies dictate financial, business, immigration and import/export options and – under expert council, allow companies a certain level of decisiveness.  Logistics however, due to the nature of supply chain management, makes the deduction of risks and cost variables much more difficult to identify, particularly in a foreign market as large and diverse as the U.S.

Are U.S. Sales Worth the Risk?

The short answer is yes. Americans are back to work and they’re buying. Not only are they buying domestically but they’re buying foreign goods and services in greater quantities as well. In addition to the strong economy, exchange rates always make selling into the states beneficial (Exchange Rate). When the Loonie is low, you can invest Canadian capital more economically, and when it’s high, you can earn a premium on your USA sales. In addition to Americans shopping and favorable exchange rates, foreign manufactures are very anxious to sell into the booming USA economy too. Importing quality goods from Europe and Asia into the USA is another terrific business opportunity to consider. (Read more: “Eight reasons to expand to the USA – today!”)

How Do You Choose the Right Logistics Partner?

With so many 3PLs (Third Party Logistics) to choose from it’s important to match the logistics company’s expertise with your specific requirements. Like UCanTrade, Inc. many companies for example have multiple locations ‘dedicated to certain types of fulfillment’. In addition to expertise and warehousing capabilities the following questions will help determine how a 3PL ‘measures up’:

  • What are their order fulfillment strengths? B2B, B2C or both.
  • Which categories of goods do they specialize in handling? I.e. hard goods, pharma, food etc.
  • What types of shipping/handling methods do they use? I.e. ‘kit assembly, continuation plans’ etc.
  • Does their technology and systems support your fulfillment needs?
  • How long have they been in business?
  • What size companies do they typically serve and how does that compare with your business?
  • Can they manage scalability and growth?

It’s very important that once you’ve shortlisted your 3PL candidates take a team and tour their facilities.

3PL As A Strategic Expansion Partner

An experienced business and logistics service provider (especially one based in the United States) becomes a strategic partner in your international business expansion enterprise weighing in on marketing, packaging, and pricing strategies, as well as planning for order returns/repairs. Their experience will help to mitigate the risks and distribution costs associated with selling and shipping goods and services in the states. The right 3PL will provide your business the ‘platform for growth and efficiency’ necessary in achieving sustainability selling to your US market and beyond.

TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.

Subscribe to our TradeTips Newsletter for the latest import/export events and trade news, and/or call us at (360) 380-6900.

UCanTrade
Website: www.UCanTrade.com
Phone: 360-380-6900
Email: info@UCanTrade.com
Twitter: @UCanTrade

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