UK Based Conference Company - US event

[BGD]

Hello

I run a small company that does UK-based professional business conferences. People pay to attend as delegates, others sponsor.

Following some interest from our contacts, we wish to dip a toe into the US and produce something in NYC.

Our UK accountants have been less than helpful in advising us of the tax implications, both from a UK perspective and a US perspective.

Clearly the US with sales and withholding taxes, with local state taxes and regulations is an area that it could be financially and legally punitive to get wrong.

Due to our small size and the fact we're currently just doing a feasibility study, a fully-fledged professional opinion of best methodology (i.e. it was suggested we set up a complementary LLC, but would prefer not to have two sets of annual accounts etc) is not at present viable.

If anyone has any advice, I would be grateful to hear it.

[GlobalTaxAdviser]

Hi

The key questions would be do you intend to have a trade in the US. If so, is there a permanent establishment (PE) under the US-UK double tax treaty.

Most probably you will need to register for VAT in the states you plan to hold a conference

A LLC may be most appropriate if you are non resident and income is generated outside the US. You still need to get a tax ID and file a non-resident tax return. There maybe 30% withholding tax as well to consider

If you do have a PE then a corporation maybe the better option. Two sets of filing may be unavoidable and suggest you engage a US/UK Accountancy Firm for further advice.

Kind Regards

GTA

[BGD]

Hi, The key questions would be do you intend to have a trade in the US. If so, is there a permanent establishment (PE) under the US-UK double tax treaty. Most probably you will need to register for VAT in the states you plan to hold a conference. A LLC may be most appropriate if you are non resident and income is generated outside the US. You still need to get a tax ID and file a non-resident tax return. There maybe 30% withholding tax as well to consider. If you do have a PE then a corporation maybe the better option. Two sets of filing may be unavoidable and suggest you engage a US/UK Accountancy Firm for further advice.Kind Regards GTA

Hi GTA

Your reply is much appreciated.

Looking on the HMRC site (here for instance: https://www.gov.uk/government/publicati ... -in-the-uk) I see that the answers to the key questions would be yes we intend (all being equal) to trade in the US, or at least hold an annual conference, but no, at least for the foreseeable, we would not have a permanent establishment - neither a physical office, nor a local representative.

We are non-resident and do earn income outside the US, in the UK. This is intended as a toe-dipping exercise, so not sure the advantages of an LLC. Will have a scout around online now.