Zdravo! If you are a business owner based in Serbia but operating in the USA, navigating compliance, legal, and beneficial ownership reporting requirements can be a daunting task. From understanding the intricacies of the US legal system to ensuring that your business is in full compliance with both Serbian and American regulations, the process can feel overwhelming.

In this blog, we will explore the unique challenges that Serbian business owners face when operating in the USA, and provide practical tips and advice on how to navigate the complex world of compliance and reporting requirements. Whether you are a small start-up or a well-established company, understanding and adhering to these regulations is crucial for the success and longevity of your business. Stay tuned for valuable insights and guidance tailored specifically for business owners like you, operating across borders.

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 Serbia 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 Serbian Company in the US

Even if none of the specific criteria apply, a Serbian 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 Serbia. 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, Serbian 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 Serbian 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 Serbia 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 Serbian Businesses:

Tax Treaties

As a Serbian business operating in the United States, it’s crucial to be aware that there is currently no tax treaty between Serbia and the USA. This lack of agreement means that your company may face double taxation on income earned in the United States. Without a tax treaty in place, you could be required to pay taxes on the same income to both the US and Serbian governments. It’s essential to consult with tax professionals familiar with international tax laws to navigate this complex situation and explore potential strategies to minimize your tax burden.

Trade Considerations

When conducting business with the USA, Serbian companies should be aware of the Generalized System of Preferences (GSP) program, which provides duty-free treatment for certain products imported from Serbia. However, it’s crucial to note that GSP eligibility can change, so regular updates are essential. Additionally, Serbian businesses must comply with US import regulations, including those set by the Food and Drug Administration (FDA) for food and medical products, and the Consumer Product Safety Commission (CPSC) for consumer goods. It’s advisable to consult with the US Embassy in Serbia or engage a trade specialist to navigate specific requirements for your industry. Furthermore, Serbian companies should familiarize themselves with US export control regulations, particularly if dealing with dual-use items or technology. Always stay informed about any changes in trade policies or agreements between Serbia and the USA to ensure smooth business operations.

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

Operating a Serbian 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.