Foreign investors eyeing a US expansion need market traction to justify investment. Reaching a critical mass of in market sales is a clear indicator of opportunity for further growth once on equal footing with existing market segment leaders and can be the justification companies need to take the plunge. Still, it can be difficult to convert online inquiries or trade show leads without on the ground support and intelligence whether that be business development or research capabilities.
This conundrum leads many international companies to consider avenues for employing their own representative in the market providing eyes and ears to inform their US strategy and win business. Sourcing independent contractors can be a short term solution but having a trained employee representing your interests 100% of the time can make the difference between success and failure. Still, employers in the U.S. face a host of regulatory requirements which can unnecessarily entangle a foreign firm still trying to validate the market opportunity. Employer of Record (EOR) services present one way for international investors to have their cake and eat it too in this regard presenting a flexible employment solution for investors.
In episode 5 of the America Made Easy Podcast, we take a look at outsourced recruitment and employment solutions such as EOR via Newable Avitus’ Validation Pilot and how they allow international firms to have boots on the ground in the US market without the administrative and regulatory burdens of being a US employer. For this episode, we are welcoming back Alex Mozota, Vice President for Recruiting at Avitus Group to help us break down these options for investors.
Tune in to our 5th full length episode as we explore how these solutions give international firms the flexibility to hire before setting up an entity in the US. This episode will leave listeners with a clearer understanding of why outsourced employment solutions can be a good option for companies wanting to dip a toe in the US market as they determine the ROI on a full US expansion.
Value Bombs from the Podcast
- US Employers are required to set up State and Federal Payroll Tax accounts and collect and remit taxes for all W-2 employees.
- The IRS places the burden of proof for worker classification, whether an employee or independent contractor, on the taxpayer (business).
- Employer of Record (EOR) is an organization that serves as the employer for tax purposes while the employee performs work at and for a different company. The EOR takes on the responsibility and traditional employment tasks and liabilities such as workers compensation insurance and payroll taxes.
Resources Mentioned in the Podcast
Working with Americans: How to Build Profitable Business Relationships
By: Allyson Stewart-Allen and Lanie Denslow
-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.
Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.
Newable – On your side in the UK
Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.
Avitus – On your side in the US
For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen and grow their business. From planning your entry into the US market to helping you sustain your business, Avitus offers the combination of customised and comprehensive support you need.