¡Hola! If you are a business owner based in Argentina but operating in the USA, you may be familiar with the challenges of navigating compliance and legal requirements in both countries. Understanding the reporting obligations for beneficial ownership and compliance regulations can be overwhelming, especially when dealing with cross-border operations. In this blog, we will explore the specific requirements that you need to be aware of to ensure that your business remains in good standing in both Argentina and the USA. ¡Vamos a empezar!

Registration Requirements

The United States consists of 50 states and 5 territories, each with its own set of business regulations. To operate legally, businesses must adhere to both state-specific rules and federal laws.

State-Level Registration:

When establishing a business presence in the United States, businesses from Argentina must complete state-level registration in any state where significant business activities occur. This requirement typically applies if your company:

• Has a physical presence in the state
• Frequently meets with clients in the state
• Derives a significant portion of revenue from the state
• Has employees working in the state

Incorporating your Argentinian Company in the US

Even if none of the specific criteria apply, a Argentinian company must still choose a home state for registration when conducting business in the US. This involves forming a U.S. entity, such as a corporation, LLC, or other business structure, in that state. This registration ensures that the company is officially recognized and compliant with US regulations, regardless of its level of business activity in any individual state.

The newly formed U.S. entity will operate as a subsidiary of the foreign company. This means that while the U.S. entity is legally independent, it remains under the ownership and control of the parent company based in Argentina. This structure allows the company to conduct business in the US while maintaining its international headquarters.

We recommend using Northwest Registered Agent if your foreign company needs to incorporate. They offer expert guidance and can serve as a reliable registered agent for your business, ensuring compliance and smooth operations.

Federal Requirements

In addition to state requirements, Argentinian companies must also comply with federal regulations:

• Federal Tax ID: Obtain an Employer Identification Number (EIN) from the IRS. This number is essential for tax reporting and opening U.S. bank accounts.
• Industry Regulations: Companies may need to follow specific federal regulations depending on the industry. For example:
• Import/Export Laws: If the company is involved in importing or exporting goods, it must meet U.S. customs regulations. This includes adhering to rules for tariffs, duties, and necessary documentation.

Beneficial Ownership Information Reporting Requirements

For Argentinian businesses conducting operations in the U.S., adhering to Beneficial Ownership Information Reporting (BOIR) requirements is crucial. The Corporate Transparency Act mandates that companies disclose the individuals who own or control them. This applies to most entities, including those that are incorporated or registered in any U.S. state. The goal is to enhance transparency and combat illicit activities such as money laundering and terrorism financing.

A beneficial owner is an individual who controls the company or owns 25% or more of its shares, either directly or indirectly. For compliance with BOIR requirements, businesses must report information about these individuals, including their names, addresses, and identification details. Failure to file this report can result in significant penalties and legal consequences. Therefore, companies from Argentina need to ensure they meet these reporting obligations promptly and accurately.

For your convenience, you can file your Beneficial Ownership Information Report directly on our website. Click here to complete the process in just a few minutes and ensure your business complies with U.S. regulations.

Additional Considerations for Argentinian Businesses:

Tax Treaties

As an Argentine business operating in the United States, it’s crucial to understand that there is no tax treaty between Argentina and the USA. This absence of a tax treaty means that your company may face double taxation on income earned in the United States. You’ll likely be required to pay taxes on your US-sourced income to both the US government and the Argentine tax authorities. To mitigate this situation, it’s advisable to consult with tax professionals who specialize in international taxation to explore potential strategies for minimizing your tax burden.

Trade Considerations

When conducting business with the USA, Argentine companies should be aware of the Trade and Investment Framework Agreement (TIFA) signed between the two countries in 2016. This agreement aims to promote bilateral trade and investment by addressing trade barriers and fostering cooperation on various economic issues. While there is no comprehensive free trade agreement between Argentina and the USA, both countries are members of the World Trade Organization (WTO), which provides a framework for international trade rules. Argentine businesses should also familiarize themselves with US import regulations, including tariffs, quotas, and product-specific requirements. Additionally, they should research any industry-specific regulations that may apply to their particular sector, such as food safety standards for agricultural products or compliance requirements for manufactured goods. Staying informed about these agreements and regulations will help Argentine companies navigate the complexities of trading with the USA and ensure smooth business operations.

Your Path to Compliance: Key Takeaways for Argentinian Businesses in the U.S.

Operating a Argentinian business within the USA requires careful attention to legal obligations, from establishing your home state to incorporating and filing a beneficial ownership report. Meeting these requirements is essential for ensuring compliance and securing your business’s success in the American market. By understanding and adhering to these steps, you can confidently navigate the complexities of doing business in the U.S. and focus on growing your enterprise.

Ready to get started? Click here to file your BOIR in just a few short minutes. We make the process easy, fast, and secure so you can focus on what matters—your business.