International Business Tax Services
International growth creates opportunity, but it also creates complexity. A business operating in one country may have a straightforward tax structure. Add foreign operations, international employees, or cross-border ownership, and the reporting requirements can change quickly.
LBMC works with businesses at every stage of international growth. Whether you’re a U.S. company expanding into foreign markets, a foreign-owned business entering the United States, or an organization managing employees across multiple countries, each situation brings unique tax considerations, reporting obligations, and business decisions.
Our role is to help clients understand those requirements before they become problems. We work alongside leadership teams to address U.S. tax compliance, foreign information reporting, international tax planning, expatriate tax matters, and other cross-border considerations. The goal isn’t simply compliance. It’s helping businesses make informed decisions as they grow.
Please note: LBMC focuses on U.S. tax matters. We do not prepare foreign-country income tax returns, but we regularly collaborate with trusted international advisors when foreign tax support is needed.
Let’s Talk About Your International Tax Strategy
International tax planning is most effective before significant business decisions are made. Connect with LBMC’s international tax professionals to evaluate the U.S. tax implications of your cross-border operations, expansion plans, or foreign ownership structure.
Inbound U.S. Tax Advisory
For foreign companies entering the U.S. market, tax considerations often begin long before a U.S. entity is established. Activities such as selling into the United States, storing inventory in the U.S., employing personnel, or conducting business operations may create federal and state tax reporting and remittance obligations.
Many foreign companies entering the U.S. face both federal and state tax obligations. LBMC frequently collaborates with our State and Local Tax (SALT) professionals to help businesses evaluate multistate tax exposure and compliance requirements.
LBMC helps foreign-owned businesses evaluate:
- State market entry considerations
- Federal and state tax exposures
- Entity structure alternatives
- State tax reporting and remittance obligations
- Cross-border operating models and treaty implications
- Ongoing compliance obligations
Outbound International Tax Planning
As U.S. companies expand internationally, understanding the tax implications of foreign operations becomes increasingly important. Early planning can help organizations evaluate risks, identify opportunities, and establish efficient operating structures.
LBMC helps organizations evaluate:
- Foreign expansion strategies
- International Entity Structures
- Cross-border transaction considerations
- Tax treaty implications
- Foreign tax credit management
- FDDEI and IC-DISC opportunities
- Ongoing reporting and compliance requirements
Foreign-Derived Deduction Eligible Income (FDDEI)
The FDDEI deduction can reduce the effective tax rate on qualifying foreign-derived income. LBMC helps businesses evaluate eligibility, calculate potential benefits, document supportable positions, and incorporate FDDEI into broader international tax planning strategies.
Interest Charge Domestic International Sales Corporation (IC-DISC)
IC-DISC structures can provide significant tax savings opportunities for qualifying U.S. exporters. LBMC assists with feasibility assessments, commission calculations, annual compliance, and ongoing optimization strategies.
International Tax Compliance and Reporting
Businesses with international operations face complex U.S. tax reporting requirements. Our team helps organizations meet their compliance obligations while reducing risk and identifying planning opportunities.
Services may include:
- State federal tax return preparation for businesses with international operations
- Form 5471 reporting for foreign corporations
- Form 8865 reporting for foreign partnerships
- Form 8858 reporting for foreign branches and disregarded entities
- Form 926 reporting outbound asset transfers
- Foreign trust and foreign asset reporting
- FBAR and foreign financial account reporting
- NCTI compliance and planning considerations
- Subpart F income reporting and analysis
- Foreign tax credit reporting and planning
- Maximizing FDDEI benefits
Global Mobility and Expatriate Tax Services
We assist employers, business owners, executives, and employer-sponsored individuals with U.S. tax matters related to international assignments and cross-border employment situations.
Services may include:
- State tax return preparation
- Foreign earned income exclusion analysis
- Foreign tax credit planning
- State reporting for foreign assets and accounts
- Tax planning related to international assignments
International Tax Guidance for Cross-Border Growth
From international expansion and foreign ownership structures to expatriate tax matters and compliance requirements, LBMC provides practical guidance designed to help businesses operate with confidence across borders.
Why Businesses Choose LBMC for International Tax Services
International tax decisions affect entity structures, reporting requirements, tax liabilities, and long-term business strategy. LBMC helps businesses navigate the U.S. tax implications of international operations, including foreign expansion, inbound investment, cross-border ownership structures, and globally mobile employees.
Our team works with both foreign-owned businesses entering the U.S. market and U.S.-based companies expanding internationally. While LBMC focuses on U.S. tax matters, we regularly collaborate with trusted international advisors when foreign-country tax expertise is needed.
Representative Client Scenario: SaaS Company Expanding into the U.S.
A foreign-based SaaS company began serving U.S. customers through its website and experienced rapid growth in the U.S. market. As demand increased, the company hired U.S.-based sales personnel and later established a U.S. legal entity to support its operations.
During the expansion process, the company discovered potential federal and state tax obligations related to its growing U.S. presence. LBMC helped the organization evaluate its historical exposure, address compliance requirements, and develop a tax structure to support future growth.
Today, the company has greater visibility into its U.S. tax obligations and a framework for managing compliance as its U.S. operations continue to expand.
Related Tax Services
International tax planning often intersects with other areas of tax strategy. Explore these related services to learn how LBMC supports businesses with complex U.S. tax needs.
- Federal Business Tax – Comprehensive tax planning and compliance for businesses operating in the United States.
- State & Local Tax (SALT) – Guidance on nexus, sales and use tax, and multi-state tax obligations.
- Credits & Incentives – Identify federal and state tax credits that support business growth and investment.
- Research & Development Tax Credits – Maximize available tax incentives for qualifying innovation activities.
- Individual Tax – Tax planning for executives, expatriates, business owners, and high-net-worth individuals.
LBMC Insights and Perspectives
International Tax Leadership
LBMC’s International Tax practice is led by dedicated professionals with deep experience advising businesses on U.S. tax matters related to international operations. Whether clients are entering the U.S. market, expanding globally, or managing ongoing compliance obligations, our team provides practical guidance backed by the resources of one of the nation’s Top 40 accounting and business consulting firms.
Frequently Asked Questions About International Tax Services
When should a business involve an international tax advisor?
International tax planning is most effective before significant business decisions are made. Whether you’re expanding into new markets, entering the United States, establishing a foreign subsidiary, restructuring cross-border operations, or managing globally mobile employees, early planning helps businesses evaluate U.S. tax implications before they become compliance challenges.
Does LBMC prepare foreign-country tax returns?
No. LBMC focuses on U.S. tax matters. While we regularly advise clients on the U.S. tax implications of international activities, we do not prepare non-U.S. income tax returns. When foreign-country tax expertise is needed, we can often coordinate with trusted international advisors.
Does LBMC help foreign companies entering the United States?
Yes. We work with foreign-owned businesses establishing or expanding U.S. operations and provide guidance on U.S. tax compliance, reporting requirements, and tax planning considerations.
Does LBMC work with businesses expanding internationally?
Yes. We help U.S.-based companies evaluate the tax implications of international expansion, including entity structures, reporting requirements, foreign tax considerations, and ongoing U.S. compliance obligations.
Does LBMC provide U.S. expatriate tax services?
Yes. LBMC provides expatriate tax services primarily for employees, executives, and business owners whose international tax matters arise from employer-sponsored assignments, cross-border business activities, or international operations.
Is LBMC the right fit for all international tax situations?
LBMC is best suited for businesses with international operations, foreign-owned companies, U.S. companies expanding abroad, globally mobile employees, and individuals whose international tax matters are connected to a business, employer, or cross-border commercial activity. If your needs involve foreign-country tax return preparation or highly specialized international tax remediation matters, another provider may be a better fit.
Need Help Navigating International Tax Requirements?
If you’re a U.S. company expanding abroad, a foreign-owned business operating in the United States, or an organization managing globally mobile employees, LBMC can help you evaluate your options and develop a tax strategy aligned with your business goals.
LBMC focuses on U.S. tax matters related to international business activities, foreign ownership structures, and cross-border operations.