On Thursday, American people will celebrate Thanksgiving. Along with discovering surprising customs, like the President issuing a “pardon” to a turkey, you may find yourself in an unexpected situation: after Thanksgiving celebrations, and until the end of the year, it’s not uncommon to experience what we are tempted to label as a “partner shortage”.
What do we mean? Well, if you do the math, there are only 6 weeks between Thanksgiving and December 31, 2018. Your American partners will have spent a few days off, which will have consumed a lot of their energy (Thanksgiving is a big deal here), and then get back to work in a frenzy to wrap things up along with preparing Christmas and New Year’s Eve. Point is that they may have only 3.5 working weeks by the end of the year to achieve so.
As a consequence, you should expect administrations to be slower to process your requests, associations to deprioritize your partnership offers, and private organizations to stick to the most pressing matters at the expense of gracious interactions and attention to their clients’ whims.
This is not a good time to change plans, arguing on details, or shift moods.
We strongly recommend that:
You communicate a bulleted list of things to be accomplished by the end of the year with your partner before Thursday, also wrapping up as much as you can regarding current projects. That way, your partner will have a clear vision for the weeks to come before leaving the office to debone the bird.
You get yourself rigorously organized to manage the various projects at hand, especially if you intend to create a US entity in January. This will help you communicate with your US partner effectively during weeks to come, highlighting priorities, sharing about your progress on the various fronts, and delivering the exact information and documents needed at the time your partner needs them. Regarding administrations, you will need to provide them with all required documents by the first week of January to avoid the obligation to file a tax return for tax year 2018.
In case you intend to switch partners, don’t forget to map the various steps you will need to take for a smooth transition. Below are some examples, but of course, feel free to contact TradeSherpa if you wish to discuss the process and get a comprehensive, customized checklist!
- If you are hiring new accountants, don’t forget about the 2018 general ledger, bank statements, and W9 forms
- If you are hiring new payroll providers, don’t forget about the employees’ personal files, 941 forms, and payroll journals
- If you are hiring new tax preparers (CPAs), don’t forget about 2017 tax returns (federal and states), quarterly estimates paid in 2017, and new qualifications to do business, if any
- If you are hiring new lawyers, makes sure that you prepare a detailed brief and have all the current legal documentation at hand.
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Disclaimer: The materials provided in this US Toolbox are for general information purposes only and are not intended to constitute comprehensive or specific legal, accounting, tax, marketing, or other advice. These materials may not reflect recent developments in the law, may not be complete, and may not pertain to your specific situation and circumstances.TradeSherpa, Inc. assumes no responsibility for errors or omissions in the materials, or for any losses that may arise from reliance upon the information contained these materials. Because these materials are intended to provide only general advice, specific advice should be taken from qualified professionals when dealing with specific situations and circumstances.