¡Hola! If you are a business owner based in Chile 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. As a fellow Chilean entrepreneur, I know the importance of staying informed and compliant to ensure the success and longevity of your business. In this blog, we will explore the specific reporting requirements and regulations that you need to be aware of when operating in the USA as a Chilean business owner. Let’s dive in and make sure your business is on the right track!

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 Chile 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 Chilean Company in the US

Even if none of the specific criteria apply, a Chilean 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 Chile. 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, Chilean 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 Chilean 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 Chile 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 Chilean Businesses:

Tax Treaties

The tax treaty between the United States and Chile offers significant advantages for businesses operating across both countries. This agreement helps prevent double taxation, reduces withholding taxes on certain types of income, and provides clarity on tax residency issues. By leveraging the benefits of this treaty, Chilean businesses can potentially lower their overall tax burden and streamline their operations in the USA. For more detailed information about the specific provisions and documents related to the US-Chile tax treaty, click here to access the official IRS resources.

Trade Considerations

When conducting business with the USA, Chilean companies should be aware of the United States-Chile Free Trade Agreement (FTA) that has been in effect since 2004. This agreement eliminates tariffs on most goods traded between the two countries and provides preferential market access for Chilean products. However, it’s crucial to understand that certain industries may still have specific regulations or requirements. For example, agricultural products may be subject to phytosanitary measures, while certain manufactured goods might need to meet U.S. safety standards. Additionally, Chilean businesses should familiarize themselves with U.S. customs procedures, documentation requirements, and any relevant export controls. It’s advisable to consult with trade experts or legal professionals to ensure compliance with all applicable regulations and to take full advantage of the benefits offered by the FTA.

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

Operating a Chilean 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.