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Does this constitute trading is the US and if so how do you go about registering

I have a client who wants to import electrical components to the US from various other countries in the world, manufacture the components into a product and export the product to the UK for onward distribution to customers in UK/EU/non EU.

I see a problem in that the activities in the US could constitute trading and as such a trading entity would need to formed in the US where manufacture would take place. That business would then sell to my clients UK based Limited Company and they would then sell at full retail to their end user customers whereever they may be.

What does anybody think about this please?
David Brown


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03rd Jun 2009 16:46

Thanks Sam.........................
but if there is a transfer price out of the states into the UK then that implies a taxable profit in the states that would need to be declared under their tax laws.........therefore would the branch in the states be subject to US taxes.

many thanks

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