Doing business overseas, or even in Canada or Mexico has challenges that a small business owner might not foresee. With today’s technologies, a lot of the barriers to entry have come down, but let’s consider a few of the stumbling blocks that still exist.
The first thing you might consider is how to leverage the workforce in the new country. You’ll need to know their labor laws and follow them.
The next thing to think about is the amount of fraud in a given region. Do your homework and be extra diligent when the area where you are working is known for a high incidence of fraud. Don’t just think about someone scamming you out of money, but worse yet getting you involved in something that seems legit, but turns out to be a fraudulent operation.
You may have to deal with double taxation, once from the U.S. and once from the country where you’re doing business. A well trained, experienced CPA will help you minimize your tax burden and file all the right paperwork to keep the IRS and their foreign counterparts off your back.