125 FAQ’s on Guidance for Doing Business in United States of America (USA)

Introduction: Embarking on business ventures in the United States of America (USA) demands a nuanced understanding of its multifaceted landscape, covered comprehensively in this guide featuring 125 frequently asked questions (FAQs). The USA, renowned for its economic prowess and diverse business infrastructures, offers a fertile ground for entrepreneurial endeavors. Spanning vast geographical terrain with diverse climates, the nation presents abundant natural resources alongside unparalleled educational opportunities. Entrepreneurs benefit from a stable currency and expansive markets, highlighting the nation’s advantageous business environment. Navigating the intricate realm of business structures, from sole proprietorships to corporations, requires careful consideration of their respective advantages and disadvantages. Compliance with legal regulations, including tax identification and adherence to federal mandates such as the Foreign Account Tax Compliance Act (FATCA), is imperative for sustainable business operations. Moreover, setting up business structures entails meticulous processes, involving considerations for neo-banking services and virtual office addresses. Understanding the intricacies of taxation, both federal and state, is essential for financial stability and legal compliance. For Indian entities eyeing business opportunities, navigating legal frameworks and regulatory requirements is crucial for success. Specialized activities such as Duty-Free Zones (DFZs) and Maquiladoras programs offer additional avenues for international trade and investment. Furthermore, comprehending visa regulations is paramount for foreign employees and entrepreneurs seeking to establish a presence in the USA, with various visa categories catering to different purposes. This guide aims to provide a comprehensive resource, equipping entrepreneurs with the knowledge and insights needed to thrive in the dynamic landscape of American business.

(A) USA’s Introduction for doing business

USA’s background

(i) USA is prominent market for foreign inves-tors where several foreign companies are planning to enter with understanding that USA’s market will be key considerations for their long-term success.

(ii) USA is covering approximately 50% of world’s total production items

(iii) USA is covering approximately 25% of world’s total consumption items for most of goods and services (both).

2. USA’s business infra-structures

(i) (a) USA is permitting 100% foreign investments in most of sectors with most fa-vorable regulatory environments in the world

+ (plus)

(b) Also USA is permitting equal rights + equal opportunities for foreign companies and also for foreign nationals except few exceptions (all)

(ii) USA is having highly educated + also skilled workforces (both) approximately 180 million people to attract foreign investors.

(iii) USA is having highly developed infrastructure for transportations + communications + electrical powers to support for advanced industrial + commercial + also agricultural activities (all).

(iv) USA’s technology + manufacturing + also service industries (all) are important sectors for foreign investors.

(v) USA is not having unemployment due to tight labor markets

3. USA’s structure

(i) USA is federal republic consisting 50 states + also District of Columbia (Washington, D.C.) both.

(ii) Original American colonies have achieved their independence from England in 1776 thereafter USA is operating under 250 year old constitution.

(ii) 50 individual states are permitted to exercise high degree of autonomy + al-so to play important role in business regulations (both).

(iv) USA state ’s are legislating + administrating civil + criminal laws within their jurisdictions to regulate activities like education + utili-ties + insurance + also state banking (all).

(v) USA’s federal govt. + municipal governments are acting within state guidelines for operating public facilities + services like law enforcement + public safety + clean water + wastewater systems + also local roads (all).

(vi) Separate school districts have operational authority over publicly supported education at local level.

(vii) Foreign investors are required to handle USA’s wide diversity of regulations + services + state’s taxes + also local taxes (all)

(viii) Foreign investors are benefited with competition among USA’s various jurisdictions to attract foreign investors.

(ix) Foreign investors are facing problems for handling 50 state’s rules + tax regimes + also for understanding patchwork of state regulations (all).

(x) Foreign investors are benefited with state’s laws + regulations which are transparent + also evenly applied within state except few exceptions (all).

(ix) USA’s local bureaucracies are working for creating cooperative + also helpful environment (both) for business-es.

4. USA’s History

• USA is known best place for having plenty of opportunities specifically these commenced after 1850 when USA’s economy has started shifting from farming to industry.

5. USA’s business ad-vantages

(i) USA is having techno-friendly environment

(ii) USA is having political stable environment

(iii) USA is having favorable economic environment

(iv) USA is having Intellectual Property (IP) protection

(v) USA is having easy US immigration

(vi) USA is having easier access to capital + investors (both)

(vi) USA is having business-friendly laws + regulations (both)

(viii) USA is having federal + state + local govt.’s Initiatives (all)

(ix) USA is having equal opportunities for foreign inves-tors

(x) USA is having business credibility among Americans

6. USA’s total land

(i) USA is 3^rd largest counterfort land in the

(ii) USA is having total area of 9,8335,517 km

(a) Land area is 9,147,593 km

(b) Water area is 685,924 km

• Abovementioned total area includes 50 states + also Columbia’s district (both)

(iii) USA is having equivalent to50% area as available with Russia

(iv) USA is having slightly larger area as comparative to China

(v) USA is having equivalent to200% area as available with Western Europe

7. USA’s Climates

(i) USA’s climate is tropical like:

(a) In Florida area

(b) In Hawaii area

(c) In Gulf Coast area

(ii) USA’s climate is desert like:

(a) In southwest area

(b) In arctic in Alaskan interior area

(iii) USA’s interior for 48 states is having greater seasonal temperature ranges comparison to coastal are-as.

(iv) USA’s rainfall is generally increasing west to east in central areas.

(v) USA’s 2 major northern + southern mountain ranges are affecting local climates like Appalachians in East + also Rockies in West (all).

8. USA’s Geographic Area (Terrain)

(i) (a) USA is comprising with vast central plain mountains in West

(b) USA is comprising with hills + mountains (both) in East

(c) USA is comprising with rugged mountains + also broad river valleys (both) in Alaska

(d) USA is comprising with rugged + also volcanic topography (both) in Hawaii.

(ii) USA is having lowest point like – (mi-nus) 86 m in Death valley

(iii) USA is having highest point like 6190 m in Denali

9. USA’s Natural re-sources

(i) USA is having several natural resources like:

(a) Coal as natural resource

(b) Copper as natural resource

(c) Lead as natural resource

(d) Molybdenum as natural resource

(e) Phosphates as natural resource

(f) Uranium as natural resource

(g) Bauxite as natural resource

(h) Gold as natural resource

(i) Iron as natural resource

(j) Mercury as natural resource

(k) Nickel as natural resource

(l) Potash as natural resource

(m) Silver as natural resource

(n) Tungsten as natural resource

(o) Zinc as natural resource

(p) Petroleum as natural resource

(q) Natural gas as natural re-source

(r) Timber as natural resource

(s) Etc. as natural resource

(ii) USA is having world’s largest coal re-serves for 491 billion tones which is equivalent to 27% of world’s total

10. USA’s usable land

(i) USA is having agricultural land in 5% area like:

(a) Under arable in 8% area

(b) Under permanent crops in 23% area

(ii) USA is having forest land in 3% area

(iii) USA is having Irrigated land in 264,000 km

11. USA’s Natural Hazards

(i) For Tsunamis + volcanoes +also earthquake activity around Pacific Basin (all)

(ii) For Hurricanes along with Atlantic coast

(iii) For Tornadoes in Mid-west

(iv) For Mudslides in California

(v) For Forest fires in West

(vi) For Flooding

(vii) For Permafrost in northern Alaska being major impediment to development

12. USA’s Environmental is-sues

(i) For air pollution resulting in acid rain in USA + also Canada (both)

(ii) For large emitter of carbon dioxide from burning of fossil fuels

(iii) For water pollution from runoff of pesticides + also fertilizers (both)

(iv) For limited natural freshwater re-sources in most of USA’s western part which requires careful management

(v) For desertification

13. USA’s Education

(i) USA’s elementary + also secondary educations (both) are mandatory up to age 16 or 18 as varying from state to state.

(ii) USA’s public schools are fully subsidized

(iii) USA’s enrollment for education in public + also private schools (both) like:

(a) 90% in public schools

(b) 10% in private schools

(iv) (a) USA’s 88% adults having age over 25 years are graduated from high school

+ (plus)

(b) Also 37% out of 88% adults have obtained bachelor’s degree or higher degree.

14. USA’s Currency

(i) USA is having US dollar (USD) as currency equivalent to 100 cents to 1 USD

(ii) USA’s USD is freely convertible into currency of non USA countries.

15. USA’s markets

• USA’s foreign investors generally are not considering multitude of local + also regional markets (both) where each market has different requirements like:

(i) USA’s certain states like New York + Illinois + California + Texas are richer + larger in geography + also population than many countries in the world (all)

(ii) USA’s different regions have distinctive cultural + also economic characteristics (both) therefore when foreign investors fails to recognize same may ultimate lead to losses in USA’s business

(iii) USA’s diverse ethnic populations are representing in large + also in distinct markets (both) across the country.

(iv) USA’s overall geographic size is presenting special logistical challenges in serving + also in supplying custom-ers (both).

(B) USA’s Business Structures for doing business

16. USA’s business structures

(i) Through Sole Proprietorships

(ii) Through Partnerships

(iii) Through Limited Liability Companies (LLCs)

(iv) Through C-Corporations (Companies)

(v) Through S-Corporations like small companies in India

17. USA’s sole proprietor-ship entities

(i) (a) Sole proprietorships are permitted for easy to form + also provide 100% business’s control (both).

(b) Sole proprietorships are permitted for activities without with govt.’s registration.

(ii) (a) Sole proprietorships are not permitted for separate business entity.

(b) Sole proprietorships are not permitted for separate business assets + business liabilities from personal assets + also liabilities (all).

+ (plus)

(c) Sole proprietorships are responsible for personal liabilities against debts + also business obligations (both).

But

(d) Sole proprietorships are permitted for obtaining trade names.

(iii) Sole proprietorships are good choice for low-risk businesses + also for owners (both) those wishes to test their business ideas before forming other business structure like partnership or LLP or C-Corporation or S-Corporation (any).

18. USA’s partnership

• Partnerships are permitted as simplest structure for minimum 2 or more than 2 persons to carry business together under 2 category of partner-ships like:

(i) Under Limited partnerships (LPs)

(ii) Under Limited liability partnerships (LLPs)

19. USA’s Limited Partner-ships (LPs)

(i) LPs are required to have minimum 1 partner with unlimited liability

(ii) 100% other partners are permitted to have limited liability.

(iii) 100% other partners with limited liability are permitted to have limited control which is to be documented in partnership agreement.

(iv) 100% other partners with limited liability are required to offer profits directly to Internal Revenue Service (IRS) in USA similar to In-come Tax Department (ITD) in India through their personal tax returns + also required to pay self employment taxes (both)

(v) General partner with unlimited liability is required to offer profits directly to IRS through personal tax returns of partners + also to pay self employment tax-es.

20. USA’s Limited Liability Partnerships (LLPs)

(i) LLPs are similar to LPs

But

(ii) LLP’s 100% partners with limited liability are permitted to protect themselves from LLPs liabilities beyond their capitals.

(iii) LLPs are treated good choice for carrying businesses with multiple partners or professionals (any) like attorneys + also etc. (both) those wishes to test their business ideas before forming C-Corporation in USA similar to company in India.

21. USA’s Limited Liability Companies (LLCs)

(i) LLCs are permitted to take advantage of corporations + also partnerships (both) business structures.

(ii) LLCs are permitted to protect from personal liability against personal assets + vehicles + houses + also savings ac-counts (all) during bankruptcy or lawsuits (any)

(iii) LLCs are permitted for profits + losses (both) to be passed through to their personal incomes without facing corporate tax rates.

(iv) LLC’s members are considered self-employed + also required to pay self-employment tax + contributions towards Medicare + also social Securities (all).

(v) (a) LLCs are having limited life in many states when a member joins or leaves (any)

(b) LLCs are required to dissolve in some states + also to re-structure (both) with new members except where LLCs are having agreement in place for buy-ing + selling + also transferring ownership (all).

(vi) LLCs are treated good choice for medium or higher-risk businesses where personal assets of members are protected + also members those wish to pay lower tax rate comparison to Corporation (both).

22. USA’s C-Corporations

(i) (a) C-Corporations with limited liabilities are permitted to carry business under less simplest struc-ture comparative to partnership structure

(b) C-Corporation’s legal status is separate from its owners (shareholders)

(c) C-Corporations with limited liability are required to offer profits directly to IRS in USA similar to ITD in India through c-corporation tax returns

(ii) (a) C-Corporations are permitted to offer strong-est protection to its shareholders from their personal liabilities

But

(b) C-Corporations incorporation’s cost is much higher than other structures like Sole proprietorship + also partnership (both)

+ (plus)

(c) Also c-corporations are required to have more extensive record-keeping + operational processes + also reporting (all).

(iii) (a) C-Corporations are required to pay income tax on their own prof-its.

+ (plus)

(b) Also shareholders are required to pay income tax on their dividend incomes separately.

(iv) C-Corporations are permitted to have 100% independent life separate from its shareholders.

(v) C-Corporations shareholders are permitted to sell their own shares

(vi) C-Corporations are permitted to carry business comparatively undisturbed beside shareholders is existed or sold their own shares.

(vii) C-Corporations are permitted to raise share capital through sale of shares.

(viii) C-Corporations are treated good choice for medium or high-risk business-es by raising share capital through sale of shares to public.

23. USA’s S-Corporations

(i) S-Corporations are permitted for selecting to pass corporate incomes + losses + deductions + also credits (all) through shareholders for Federal Tax (FT) purposes (only).

(ii) S-Corporation’s shareholders are required to re-port incomes + losses in their personal tax returns + also to be assessed at individual income tax slabs (rates) all.

(iii) S-Corporation’s shareholders are permitted to avoid double taxation on their corporate incomes.

(iv) S-Corporations are required to pay income tax on their certain built-in gains + also passive incomes (both) at S-corporation’s level.

24. USA’s qualifications for S-Corporations

(i) Required to be domestic corporation (only)

(ii) Permitted shareholders :

• Individuals + certain trusts + also certain estates (all)

(iii) Not Permitted shareholders :

• Partnerships + corporations + also non-resident share-holders (all)

(iv) Not permitted for number of share-holders exceeding 100

(v) Not permitted for exceeding 1 class of shares

(vi) Not permitted for eligible Corporation:

• Certain financial institutions + insurance companies + also domestic international sales corporations (all).

25. USA’s Characteristic for S-Corporations

(i) S-Corporations are required to meet certain criteria as mentioned under FAQ 24.

(ii) S-Corporations are permitted to have independent life where shareholders are allowed to leave company or sell their shares without disturbing continuity to carry business.

(iii) S-Corporations are required to follow strict + also operational processes of C-Corporations (both).

(iv) S-Corporations are required to register with IRS to obtain S-Corporation’s status over and above additionally to register as S-Corporations with their state.

(v) (a) 100% states are not treating 100% S-Corporations equally

But

(b) Many states are recognizing similar to federal government (govt.) + treating them + also to levy tax on shareholders (all).

(c) Some states are charging tax on S-Corporation’s profits above certain specified limits

(d) Some states are not recognizing available privileges for S-Corporations

+ (plus)

(e) Also treating S-Corporations equivalent to C-Corporations

(iv) S-Corporation’s incorporations are permitted to avoid double taxation drawback which is existed with C-Corporation’s incorporations.

(v) S-Corporations are permitted for prof-its + also some losses (both) to be passed directly to owners’ personal incomes without using corporate tax rates.

26. USA’s business structure’s comparison

S. No	Name of Business Structure	Pattern of Ownership	Nature of Liability	Type of taxes
(i)	Sole Partnership	1 Person	Unlimited personal liability	Self-employment personal’s tax
(ii)	Partnerships	Minimum 2 persons + (plus) Maximum unlimited persons	Unlimited personal liability except structured for limited liability partnership	Self-employment personal’s tax expect structured for limited liability partnership
(iii)	Limited Liability Company ( LLC)	Minimum 1 person + (plus) Maximum unlimited persons	0% personal liability	Self-employment personal’s tax or corporate tax
(iv)	C- Corporation	Minimum 1 person + (plus) Maximum unlimited persons	0% personal liability	Corporate tax
(v)	S- Corporation	(a) Minimum 1 person + Maxi-mum 100 persons + (plus) (b) Also 100% persons must be U.S. Citizens (both)	0% personal liability	Self-employment personal’s tax

27. USA’s LLC advantages

(i) Unlimited number of members (owners) are permitted under LLC

(ii) Profits + also losses (both) are to be passed through owners individual tax returns

(iii) Annual meeting + also minutes books (both) are not required

28. USA’s LLC disadvantages

(i) LLCs are not permitted for corporate income-splitting (lower tax liability)

(ii) LLCs are not permitted for issuing shares (stocks)

29. USA’s Corporation advantages

• C + S (both) Corporations business structure’s advantages

(i) C + S (both) Corporations are permitted for issuing stocks to attract investors

(ii) C + S (both) Corporations are permitted for corporate income-splitting (lower tax liability)

30. USA’s Corporation disadvantages

(i) (a) C-corporation liable for double taxation on corporate profits

But

(b) S-corporation not liable for double taxation on corporate profits

(ii) Annual meeting + also minutes books (both) are required

(iii) (a) S-corporations are not permitted for more than 100 owners

But

(b) C-corporations are permitted for more than 100 owners

31. USA’s branch opera-tions

(i) Foreign companies (Investors) are permitted to establish unincorporated branches in USA.

(ii) Foreign Investors (parent corporations) are required to take legal liability for unincorporated branches in USA.

(iii) Foreign Investors are permitted to establish unincorporated branch in USA with moderate expenses + also minimum legal formalities (both)

32. USA’s Joint Ventures (JVs)

(i) USA is permitting business structure through JVs for specific + al-so limited (both) purposes like construction projects or mineral explorations (any).

(ii) JVs are permitted between 2 or more than 2 business entities or persons (any).

(iii) JV’s operating partners may be partnership firm or corporation (any).

33. USA’s Holding Companies

(i) USA is permitting to allow holding companies for owning stocks + also securities of other legal entities (both).

(ii) USA’s holding companies are permitted for new businesses losses’ setting off against present or future profits for tax purposes (only).

+ (plus)

(iii) Also USA’s holding companies are permitted for 1 or more than 1 businesses losses’ setting off against present or future profits for tax purposes (only).

34. USA’s business records maintenance

(i) USA’s business entities + also individuals (both) are required to maintain records as adequate to verify tax returns by IRS.

(ii) USA’s corporations are required to satisfy state’s reporting requirements.

(iii) USA’s Public listed corporations are required to file annual audited financial statements (annual reports) with in USA’s federal Securities Exchange Commission (SEC).

(C) USA’s Legal Compliances for doing business

35. USA’s registered agents

(i) 100% business structures (entities) are required to have registered agent in state for pro-cessing of services.

(ii) Individuals + business entities are permitted to accept legal papers on behalf of 100% business structures when are to be sued + al-so not physically located in state (all).

(iii) 100% business structures are permitted to act through own registered agent.

(iv) 100% registered agents are required to be individual resident or business entity which is authorized to do business by state govt. in state.

(v) 100% registered agents are required to have physical street address in state.

36. USA’s Federal Employer Identification Numbers (FEINs)

(i) FEINs are unique identifier numbers to be assigned by Internal Revenue Service (IRS) to 100% business entities.

(ii) FEINs are required to be used by employers for reporting taxes to IRS.

(iii) FEINs are made with 9 digits as for-matted like XX-XXXXXXX.

(iv) 100% business entities are permitted directly to IRS to apply for FEINs.

(v) IRS is issuing FEINs immediately.

37. USA’s State Employer Identification Numbers (State EINs)

(i) State EINs are known as state tax registrations of employer

(ii) State EINs are assigned by IRS to 100% employees based business entities

(iii) State EINs are being used for filing tax-es + also hiring employees (both).

38. USA’s goods importing entities

(i) Business entities (importers) are permitted for importing goods with certain requirements + restrictions + also regulations (all) needed.

(ii) Importers are responsible for making sure that 100% correct documents are filed + also 100% complied with specific rules + regulations of USA’s. govt.

(iii) Importers are required to complete 7 Steps for importing of goods into USA like:

(a) To obtain Importer number

(b) To speak to customs broker

(c) To determine goods’ tariff classification + also valuation (both)

(d) To prepare commercial invoice

(e) To complete Importer security fil-ing for ocean shipment (only)

(f) To determine for customs bond if needed

(g) To file entry documents + also to pay customs duties and taxes (both)

39. USA’s Foreign Account Tax Compliance Act (FATCA)

(i) USA’s FATCA is required for comprehensive S. anti-evasion global reporting system as designed to locate incomes + assets held by USA’s citizens + green card holders in foreign accounts being maintained outside USA directly or indirectly through foreign entity’s ownership + also to ensure that this information is already reported to IRS (all).

(ii) (a) USA’s FATCA is required for S. With-holding Agents (USWAs) to with-hold @ 30% gross withholding tax on with hold able payments being made to non-compliant foreign persons + Foreign Financial Institutions (FFIs) + also Non-Financial Foreign Entities (NFFEs) all.

(b) Withhold able payments are to include certain payments due from USA’s sourced like Fixed, Determinable, Annual or Periodical (FDAP) incomes i.e. interest or dividends or etc. (any).

(iii) USA’s FATCA is imposing various complex registrations + reporting + due diligences + withholding requirements for FFIs + registrations with IRS + providing annual information’s on their U.S. investors + also account holders (all).

(iv) Non-Financial Companies (NFCs) have obligations under FATCA commencing from tax withholding + reporting information’s to IRS for establishing controls + procedures to ensure appropriate payee documentation is already collected + vetted + also retained (all).

(v) (a) IRS has amended several forms + also procedures (both) to conform to FATCA.

+ (plus)

(b) Also taxpayers are required to use IRS Form W-8 + its variants for documentation their foreign status (both) for FATCA purposes.

(vi) USA’s departments have also adopted similar to FATCA like OECD’s Common Re-porting Standard (CRS) which is affecting USA’s citizens + green card holders for foreign banks + also financial accounts (all).

(vii) USA is correctly not participating in OECD’s CRS.

(viii) (a) USA’s citizens + also green card holders (both) are required to adopt CRS when holding accounts in financial institutions in countries those have already adopted CRS

+ (plus)

(b) Also USA’s citizens + green card holders (both) are required to certify their CRS status + to disclose information’s for controlling inter-est like minimum 25% (all).

(D) USA’s Setting-up of business structures for doing business

40. USA’s process for set-ting up

(i) To choose entity’s name

(ii) To appoint registered agent in state

(iii) To submit documents to registered agent

(iv) To file documents to state through registered agent

(v) To review documents + also process of filings (both) by state

(vi) To issue file number after entity is formed by state

41. USA’s Neo bank (fintech firms) accounts

(i) Fintech firms are known as challenger banks.

(ii) Fintech firms are offering apps + soft-ware + other technologies to streamline mobile + al-so online banking (all).

(iii) Fintech firms are (generally) specialized in certain financial products like current account + also savings accounts (both).

(iv) Fintech firms are (generally) more nimble + also transparent in comparison to their megabank counterparts.

(v) Fintech firms are (generally) Federal Deposit Insurance Corporations (FDICs) those insure that investors’ money is safe with regular banks like:

(a) USA’s Relay Bank

(b) USA’s Lili Bank

(c) USA’s Oxygen Bank

(d) USA’s Wise Bank

(e) USA’s Mercury Bank

42. USA’s Virtual Phone Number (VPN) Service Providers

(i) VPN is treated normal + also real phone number (both).

(ii) VPN is not connected to physical phone line or to SIM-card (any).

(iii) VPN is enabling to make call with availability of free apps for Android + also iOS or your laptop (both).

(iv) VPN is enabling to have same experience like you are calling from regular local number.

(v) VPN is enabling to see your number before answering like you are making calls from regular local number. Certain virtual phone number service providers are available in USA like.

(a) USA’s Sonetel

(b) USA’s CallHippo

(c) USA’s Mightycall

(d) USA’s Krispcall

(e) USA’s Hushed

43. USA’s Virtual Office Ad-dress (VOA) Ser-vice Providers

(i) VOA service providers are providing physical ad-dress + office-related services without having overheads like long lease + administrative staff + also etc. (all).

(ii) Business entities are enable to work from any-where through VOA by using mailing ad-dress + phone answering services + meeting rooms + also video conferencing (all).

(iii) VOAs are being operated as 1 unit to serve several customers without sitting in fixed location.

(iv) VOAs are specifically popular with startups + also small businesses (both) those wish to minimize expenses.

(v) VOAs’ services are available through creation of web-based office productivity software + also services (both) like video conferencing. Certain service providers are available in USA like.

(a) USA’s ipostal1

(b) USA’s Anytime Mailbox

(c) USA’s Post Scan Mail

(d) USA’s Regus

(e) USA’s OsDoro

(E) USA’s Tax compliances for doing business

44. USA’s tax structures

(i) USA is having approximately 10,000 tax jurisdictions to levy tax therefore complying with 100% tax laws + also tax rules (both) is big challenge.

(ii) USA’s cash-strapped federal + state + also local tax collectors (all) are more vigilant for ensuring compliances of taxes therefore sometimes it’s confusing for scope of tax codes.

(iii) USA’s tax to include certain areas like

(a) USA’s Incomes tax

(b) USA’s Gross receipts tax

(c) USA’s Payrolls tax

(d) USA’s Transactions’ tax

(e) USA’s Property tax on real estate + personal properties + also intangible properties (all)

(f) USA’s Estates tax

(g) USA’s Gifts tax

(h) USA’s Excises tax on certain goods and services (only).

• USA’s federal govt. is not permit-ted to levy sales tax + also property tax (both).

(iv) USA is considered 1 out of few countries where Value Added Taxes (VAT) is not applicable similar to GST in India.

(v) USA’s states are imposing sales tax against retail sales of goods and certain services to customers within state.

(vi) USA’s sales tax (generally) is levied based on purchase price therefore being collected by seller from final buyers (consumers) thereafter being remitted to states by seller.

(vii) USA state’s seller is required to register with state tax authority + to report + also to pay sales tax (all).

45. USA’s use tax on consumption

(i) USA’s states are (generally) imposing use tax against storage or use or consumption of goods + also certain services (both) within state.

(ii) USA’s use tax is complementary to sales tax therefore being imposed when state’s sales tax or equivalent tax whichever higher was not collect-ed by seller as state’s sales tax collection agent

(iii) USA’s use tax is imposed when seller does not have nexus with state of use.

(iv) USA’s use tax is (generally) based on cost of taxable goods sold or service provider therefore purchaser is required to report + also to pay use tax (both) directly to state.

46. USA’s tax depart-ment

(i) USA’s Internal Revenue Code (IRC) similar to India’s Income Tax Act (ITA) is applicable being basic law for Federal Income Tax (FIT) purpose.

(ii) USA’s FIT is frequently changing through several amendments.

(iii) USA’s Treasury Department (TD) similar to India’s Income Tax Department (ITD) is implementing

(iv) USA’s IRS similar to India’s Central Board of Direct Taxes (CBDT) is working as federal tax collection agency + also empowered for enforcing IRC commonly known as code similar to India’s Income Tax Act (ITA), 1961.

(v) USA’s IRS is issuing regulations + other guidance for applications + also interpretations for certain provisions of IRC (all).

(vi) USA’s taxpayers are permitted for asking questions about their specific transactions through written request directly to IRS for IRC’s interpretation based on actual facts.

47. USA’s types of taxes

(i) Federal Income Tax is being levied @ 21% on taxable incomes

(ii) Social Security Tax is being levied @ 4% on taxable incomes

(iii) Medicare Tax is being levied @ 9% on taxable incomes

(iv) Federal Unemployment (FUTA) Tax is being levied @ 6% on taxable incomes

(v) Franchise Tax is varied from 1 state to another state

48. USA’s Federal Income Tax (FIT)

(i) FIT is applicable on annual taxable in-comes of individuals + business entities + also other legal entities (all) from January 01, 2018.

(ii) FIT is applicable @ 21% (flat) due to passage of Tax Cuts and Jobs Act of 2017.

49. USA’s Social Security Tax (SST)

(i) SST is applicable on wages and salaries incomes of specified employments based on Federal Insurance Contributions Act tax (FICA) or Self-Employed Contributions Act Tax (SECA) any

(ii) SST is levied under Old­ Age, Survivors, and Disability Insurance (OASDI) program

(iii) SST is administered by Social Security Administration (SSA).

(iv) SST is collected by IRS for Federal Old-Age and Survivors Insurance (OASI) Trust Funds + also Federal Disability Insurance (DI) Trust Funds (both) under Social Security Trust Funds entity

50. USA’s Medicare Tax (MCT)

(i) MCT is applicable on wages and salaries incomes on specified employments based on USA’s law.

(ii) MCT is known as Hospital Insurance Tax (HIT)

(iii) MCT is collected for funding medical insurance programs of USA’s govt.

(iv) MCT is collected by employers from employees + paid as self employment tax (both)

(v) (a) MCT is required to collect for Medicare pro-gram + also for hospital insurance (both) for individuals having minimum age 65 years

+ (plus)

(b) Also MCT is required to collect for certain disabilities or medical conditions (any)

(vi) MCT is required to include Medicare hospital insurance covers like hospital visits + hospice + nursing home care + also some home healthcare (all).

51. USA’s Federal Unemployment Tax Act (FUTA)

(i) FUTA is applicable on business entities having employees commonly known as payroll tax

(ii) FUTA is collected for allocating to state unemployment insurance agencies + also to be used for funding unemployment benefits for persons those are out of job.

(iii) FUTA is federal law for raising revenue for administering unemployment insurance + also job service programs (both) in every state.

(iv) Employers are required to pay annual or quarterly (as case may be) Federal unemployment taxes

52. USA’s Franchise Tax (FT)

(i) FT is applicable on certain business entities or on business entities as incorporated in certain states (any)

(ii) FT is applicable on owning property by certain business entities in certain states

(iii) FT is applicable beside business entities have no business incomes therefore FT is applicable beside business loss-es

(iv) FT is applicable in certain states (only) like:

(a) USA’s Delaware

(b) USA’s Alabama

(c) USA’s Arkansas

(d) USA’s Illinois

(e) USA’s Georgia

(f) USA’s Louisiana

(g) USA’s Missouri

(h) USA’s Mississippi

(i) USA’s North Carolina Oklahoma

(j) USA’s New York

(k) USA’s Texas

(l) USA’s Tennessee

(m) USA’s Pennsylvania

(n) USA’s West Virginia

53. USA’s Withholding tax compliances

(i) USA’s non residents are required to pay flat tax rate @ 30% on USA sourced incomes

(ii) USA’s non residents are permitted to avail lower tax rate or exemptions when IRC’s section is providing for lower tax rate or tax treaty benefits under Double Taxation Avoidance Agreement (DTAA) any

(iii) USA’s withholding tax compliances are applicable on payments to be made to non residents.

(iv) USA’s non residents are required to furnish Form W-8 BEN to payer beside not claiming for reduced withholding tax

(v) USA’s non residents are required to furnish Form W-8 BEN-E to payer for claiming exemptions from withholding tax compliances.

54. USA’s Major Federal Tax Forms

S. No	Form’s Name	Form’s Particulars
(i)	Form-W2	For furnishing tax statement by employees
(ii)	Form-941	For furnishing Quarterly Federal Tax Returns (FTR) by employ-ers
(iii)	Form-7004	For furnishing application for extension of time to file FTR
(iv)	Form-1065	For furnishing FTR by partnerships entities
(v)	Form-1120S	For furnishing FTR by S-Corporations
(vi)	Form-1120F	For furnishing FTR for Estates by 100% tax-payers
(vii)	Form-1120	For furnishing FTR by C-Corporations
(viii)	Form-1040	For furnishing FTR by Individuals
(ix)	Form-1040NR	For furnishing FTR by Non-resident individuals

• USA’s Federal Tax Returns (FTR) is similar to India’s Income Tax Return (ITR)

55. USA’s statutory compliances

(i) Fee payment for registered agent’s renewal

(ii) Fee payment for franchise tax

(iii) Fee payment for filing of franchise tax return

(iv) Filling of federal tax return (Form 1120)

(v) Filling of State Tax Return

(vi) Filling of Federal employer return (Form 941)

(vii) Filling of State employer return

(viii) Filling of information return (Form 5472)

(ix) Filling of Withholding tax return (Form 042 or 1042-S)

(x) Filling of Foreign Bank and Financial Ac-counts (FBAR)

56. USA’s books reconciliation + finalization + filling FTR

(i) (a) USA’s Calender year is commencing from January 01 and ending on December 31 every year.

+ (plus)

(b) Also India’s financial year is commencing from April 01 and ending on March 31

• USA’s + also India’s (both) books required to be reconciled for interparty transactions.

(ii) Transactions from January 01 to March 31 (3 months) are to be incorporated in USA’s ITR + also in India’s ITR (both).

(iii) 100% transactions between 2 AEs are to be ac-counted in books of accounts

(iv) 100% withholding compliances are to be obeyed in USA + also in India (both).

(v) 100% transactions between 2 AEs are to be carried on Arm Length Price (ALP) principles therefore benchmarking analysis are also be made in advance.

57. USA’s Consolidated FTR

(i) Federal Corporate Income Tax (FCIT) is optionally permitting for consolidated FTR for group of corporations through reporting of tax liability in 1 consolidated FTR instead of separate FTR for each corporation.

(ii) FCIT is permitting for consolidated FTR for affiliated group of corporations (only).

(iii) Affiliated group of corporations is required to has chain for more than 1 corporations + also connected through stock ownership to common parent (both).

(iv) Group’s parent corporations (generally) is required to own minimum 80% stocks of each subsidiaries directly or through 1 or more than 1 of its 80%-owned subsidiaries.

(v) Consolidated FTR is permitting for set-off of losses for 1 or more than 1 corporation with profits of 1 or more than 1 corporation through Parent Corporation.

(vi) Affiliated group is required for continuing to file consolidated FTR for 100% succeeding tax years except group is no longer remains in existence or permission is obtained from IRS for ceasing to file consolidated FTR (any).

58. USA’s Due date for FTR filing

(i) USA’s IRS is permitting corporate FTR (Form 1120) for 1 corporation or member of consolidated group (any) not exceeding April 15 for close of calendar year (ending on December 31).

(ii) USA’s IRS is permitting extension maximum for 6 month when taxpayer applies for it.

(iii) USA’s IRS is not allowing FTR when incomes not reflecting in US dollars.

59. USA’s states taxes + local taxes

(i) USA’s state jurisdictions + local jurisdictions (both) are empowered to impose taxes + fees + also other filing requirements (all)

(ii) Taxes + fees + other filings requirements are required for payroll + property + unclaimed property + licenses + industry related tax-es + taxes on special types of businesses + gross receipts + real property transactions + also net worth tax-es (all).

60. USA’s Federal taxation

• USA’s federal taxation is applicable on 2 types of individuals like USA’s residents + also USA’s non residents (both) for Income tax purpose.

61. USA’s tax residents

• Tax residents to include certain individuals like:

(i) USA’s citizens (USA’s passport hold-er)

(ii) USA’s green cardholders

(iii) USA’s non-residents like:

(a) Those have chosen to become USA’s residents for tax purpose.

Or

(b) Those have satisfied USA’s substantial presence test requirements.

62. USA’s substantial presence test

(i) Individual be treated USA’s tax resident:

(a) When individual has resided for minimum 31 days in current calendar year

or

(b) When individual has resided for mini-mum 183 days like minimum for 31 days in current year + 61 days in 1^st preceding year + 30 days in 2^nd preceding year + also 61 days spreading over all years = 183 days

(ii) Substantial present test to exclude days of resided in USA when non-residents students + also exchange workers (both) are staying in USA on F or J or Q or M (any) visa.

63. USA’s tax residents for 100% (whole) calendar year

• Individual is treated USA’s tax resident for 100% (whole) calendar year when became USA’s citizen beside non-resident in USA.

64. USA’s tax residents from 1^st day of presence in USA

(i) USA’s green card holder is treated tax resident from 1^st day of presence during calendar year

Or

(ii) USA’s substantial presence test hold-er is treated tax resident from 1^st day of physical presence during calendar year

(iii) Temporary visit for lower than 10 days are to be ignored for establishing starts date.

65. USA’s dual status for 1^st calendar year

(i) To include individual whose residency is started during mid of year therefore individual is treated dual status taxpayer for 1^st (initial) calendar year (only).

+ (plus)

(ii) Also same individual is treated USA’s partly non-resident +also partly resident (both) for tax purpose

(iii) Dual status taxpayer is having significant impact for filing status + exemptions + also deductions (all).

(iv) USA’s non-resident individual is permitted to choose 100% (whole) initial year’s residency when certain conditions are satisfied.

66. USA’s tax residents for worldwide incomes

• USA’s tax resident is required to pay Income tax on worldwide incomes + also allowed to de-duct certain deductions from his worldwide incomes like:

(i) USA’s tax resident is allowed to claim Medical + health + also retirement (all) contributions already made. However allowed subject to certain monetary limits

(ii) USA’s resident is allowed to claim fixed-amount exemptions for certain dependents

(iii) USA’s tax resident is allowed to claim fixed amount standard deduction or Itemized deductions whichever is higher like mortgage interest + real estate taxes + state income taxes + charitable donations + also work-related expenses (all). However allowed subject to certain monetary limits.

(iv) USA’s tax resident is permitted to use graduated rates of tax similar to India’s slab rate of tax on worldwide taxable incomes based on taxpayer’s filing status like single or married or etc. (any)

(v) USA’s tax resident is permitted to avail credit against tax paid on non USA’s sourced incomes (foreign incomes) similar to Foreign Tax Credit (FTC) in India.

(vi) USA’s tax resident is permitted to carry ex-cess FTC for utilizing against 1 year before current year or 10 years after current year (any) when tax resident has excess foreign sourced incomes.

67. USA’s Alternative Mini-mum Tax (AMT)

(i) USA’s tax resident is required to pay AMT similar to Minimum Alternative Tax (MAT) or AMT in India.

(ii) USA’s AMT is imposed at flat on individual’s alternative minimum taxable incomes similar to India

(iii) (a) AMT incomes are computed by adding certain preference income items + also disallowing certain expense’s deductions from regular taxable incomes

– (minus)

(b) AMT incomes are reduced by significant exemptions

+ (plus)

(c) Also AMT to be applied when AMT is higher than regular calculated tax.

(iv) (a) Primarily AMT was being applied on individuals those have significant itemized deductions.

But

(b) Now more and more individuals are covered for levy of AMT because exemptions are not increased commensurate to inflation.

68. USA’s taxation on non-tax residents

• Non-tax residents are required to pay tax on certain USA sourced incomes like:

(i) Fixed, Determinable, Annual or Periodical (FDAP) USA sourced incomes

(ii) Incomes earned through trade or business effectively connected from USA

(iii) USA’s non-tax residents are required to pay tax at graduated rates similar to slab rates systems in India

(iv) USA’s non-tax residents are permitted to avail de-ductions + also exemptions (both). However permitted subject to certain limits.

(v) USA’s non-tax residents are permitted to pay at flat tax or lower rate of tax when recipient is resident of country having Double Taxation Avoidance Agreement (DTAA) or tax treaty with USA

(vi) USA’s non-residents (generally) not required to pay tax on capital gains on sale of foreign assets except those assets are (effectively) connected with USA’s trade or business (any).

69. USA’s disclosures for foreign bank accounts + assets

(i) USA’s citizens + also green card hold-ers (both) are required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts to FTD.

(ii) FinCEN Form 114 is required to be filed up to June 30 without any extension when individual had interest or signature authority in foreign bank accounts having aggregate balance exceeding USD 10,000 at any time during calendar tax year.

(iii) USA’s citizens + also green card holders (both) are required to file IRS Form 8938, State-ment of Specified Foreign Financial Assets along with their FTR.

(iv) IRS Form 8938 is required to be filed under S. Foreign Account Tax Compliance Act (FATCA) for reporting interest in certain specified foreign financial assets when total value of assets is exceeding certain reporting limits.

(v) IRS Form 8938 is not replacing taxpayer’s obligation to file FinCEN Form 114.

70. USA’s inventory valuation

(i) USA’s inventory valuation is required using certain authorized methods like:

(a) Last-in first-out (LIFO) method

(b) First-in first-out (FIFO) method

(c) Burden rates (cost + expenses) method

(d) Specific identification (specific rates) method

(ii) USA’s taxpayers are required to apply same method consistently

(iii) ITD is permitted to ask manufacturer + large seller to capitalize certain expenses which are (normally) not associated with inventories + also certain self-constructed assets (all)

(iv) Certain expenses to include warehousing + purchasing + general + administrative costs + also etc. (all).

71. USA’s capital loss-es

(i) USA’s capital losses to include losses arise against sale of capital asset.

(ii) USA’s capital asset to include asset held for long period + also not being purchased or sold in normal course of business (both).

(iii) (a) USA’s corporations are permitted to de-duct capital losses against capital gains (only).

But

(b) USA’s unused capital losses are permitted to be carry backward for maximum 3 years or carry forward for maximum 5 years totaling to 8 years.

72. USA’s Net Operating Losses (NOL)

(i) USA’s taxpayers are permitted to carry backward of NOL for maximum 2 years or carry forward for unlimited years after year ending on Dec 31, 2017.

(ii) USA’s taxpayers are not permitted to carry backward or carry forward of NOL when pertaining to year before ending on Dec 31, 2017.

(iii) USA’s taxpayers are permitted to de-duct NOL maximum for 80% of forward year’s taxable incomes without NOL de-duction

73. USA’s Incentives + Credits

• USA is permitting several incentives + also credits (both) to promote business activities in country.

74. USA’s deductions

• USA’s business entities are permitted to claim certain deductions when engaged in manufacturing + also in other qualified production activities (both) minimum for 100% (wholly) or significant (partly) activities thereafter amount of deduction to be equal to lowest of 3 following amounts like:

(i) Maximum 9% against incomes from qualified pro-duction activities

Or

(ii) Maximum 9% against taxable incomes

Or

(iii) Maximum 50% of IRS Form W-2 wages allocable to domestic production

• Whichever is lower l

75. USA’s Research and development credit (R&D)

(i) USA’s corporations are permitted to claim deduction for more expenses than actually spend on R&D therefore corporations are permitted deductions more than 100% of actually spend.

(ii) (a) USA’s corporations are required to carry R&D under technology in nature

+ (plus)

(b) Also to be intended to resolve technical uncertainty as involved in process of experimentation

+ (plus)

(c) Also to be useful for developing of new or improved function or performance or reliability or quality of 1 or more than 1 business components (any)

76. USA’s Foreign Tax Cred-it (FTC)

(i) (a) USA’s taxpayers are permitted to claim FTC against taxes paid or accrued in foreign country on foreign sourced incomes

+ (plus)

(b) Also USA’s taxpayers are liable to pay tax in USA on same foreign sourced incomes.

(ii) USA’s taxpayers are not permitted to claim against FTC exceeding Income tax liability in USA.

77. USA’s foreign investors under 1^st regime

• Under 1^st tax regime through withholding tax

(i) Foreign investors are permitted to pay In-come tax on USA’s sourced in-comes as flat @ 30% through withholding tax when incomes are not considered (effectively) connected with USA’s trade or business like dividends or royalties paid to them.

+ (plus)

(ii) Also foreign investors are permitted to pay income tax on USA’s sourced in-comes as not flat @ 30% when recipients are qualified to avail reduced rate as specified under DTAA (tax treaty) with recipient’s country.

78. USA’s foreign investors under 2^nd regime

• Under 2^nd tax regime through regular graduated (slab) corporate tax rates

(i) Foreign investors are permitted to pay In-come tax on USA’s sourced in-comes at regular graduated (slab) corporate tax rates when incomes are considered (effectively) connected with USA’s trade or business

+ (plus)

(ii) Also foreign corporations (investors) are permitted to avail 2^nd tax regime for distribution of incomes from USA’s corporation or against distribution of earnings from USA’s branch business @ 30% or reduced rate under DTAA (tax treaty) with recipient’s country.

79. USA’s Branch prof-its

(i) Foreign investors are required to pay tax on their branch’s profits those are engaged in trade or business (any) in USA under branch profits tax

(ii) (a) Foreign investors are required to pay as flat @ 30% equivalent to dividend distribution tax

Or

(b) Foreign investors are permitted to pay reduced rate of Income tax under DTAA (tax treaty) whichever is lower under branch profits tax.

80. USA’s Real estate in-vestments

(i) Foreign investors are required to pay tax on realize gains from disposition of real estate located in USA under special tax regime equivalent to Capital gains tax as applicable on sale of corporate stocks (shares)

(ii) Foreign investors are required to pay tax on profits earned from sale of U.S. Real Property Interest (USRPI) at graduated tax rates when (effectively) connected with US trade or business (any).

(iii) USRPIs to include direct ownership + also indirect ownership of stock in USA’s corporations likes. Real Property Holding Corporation (USRPHC).

(iv) USRPHC is defined as corporation having USRPIs with Fair Market Value (FMV) equivalent to 50% or more than 50% of 100% corporation’s FMV.

(v) USA’s property is defined to include land + improvements thereon + also personal properties as associated with real properties (all).

(vi) (a) Domestically controlled (more than 50% owned) Real Estate Investment Trusts (REITS)

+ (plus)

(b) Also maximum 5% interests in publicly traded corporation is not treated USRPIs.

(vii) Buyer of USRPI is (generally) required to withhold 15% on consideration of transactions similar to other non-resident withholding tax regime

(viii) Withholding tax is representing pre payment of tax as collected by purchaser from seller in anticipation of USA’s tax liability through sale transactions

(ix) Seller is permitted to make request with FTD before transaction for reduced rate of withholding tax along with supported by preliminary calculations.

81. USA’s Thin-capitalization + earnings stripping

(i) USA is imposing restrictions on deductions under interest expense in certain circumstances like:

(a) Taxpayer is not permitted to de-duct interest exceeding 30% of taxpayer’s Adjusted Taxable Income (ATI)

+ (plus)

(b) Also taxpayer’s business interest incomes + certain other amounts (all).

(ii) ATI is defined more closely as cash basis taxable incomes.

(iii) (a) Taxpayer is permitted to carry for-ward of excess interest over 30% for unlimited years therefore abovementioned disallowance is not permanent

But

(b) Its deferment for adjustment in future.

82. USA’s Transfer Pricing (TP)

(i) USA is having detailed + also stringent Transfer Pricing (TP) rules for Arm’s Length Pricing (ALP) against Related Party Transactions (RPTs).

(ii) RPTs are to include 100% transactions conducted between corporation and its units + intercompany purchases + royalties + interest + management fees + also etc. (all).

(iii) ITD’s regulations are specifying 10 elements for comprising 100% TP study.

(iv) ITD is not prohibited for proposing adjustments in RPTs beside taxpayer is having 100% TP’s study at own level.

(v) 100% TP study is able to avoid potential penalty imposition when proposed adjustments are substantial in nature.

(vi) IRS is having authority to agree for Advance Pricing Agreement (APA) with taxpay-er.

83. USA’s Tax treaties

(i) USA has entered into bilateral income tax treaties with non USA countries where having significant trading activities.

(ii) (a) USA’s treaties are affecting taxation of business activities + also shipping activities (both)

+ (plus)

(b) Also USA’s treaties are allowing for reduced withholding taxes on certain USA sourced incomes like dividends + interest + royalties (all)

(iii) USA’s treaties are having significant limitations on benefits articles.

(iv) USA’s treaties are having complex rules to prevent foreign investors from claiming treaty benefits beside not eligible to claim through structuring transactions in 3^rd country outside USA.

84. USA’s tax reporting’s + tax compliances

(i) (a) USA is having extremely detailed tax reporting requirements + also comprehensive (both) like filing of IRS Form W8-BEN or W8-BEN-E (any)

+ (plus)

(b) IRS has dramatically increased scrutiny of foreign-related compliances in last several years.

(ii) IRS has observed that USA’s payers are not obtaining certain documents from payee to prove his entitle-ment to avail tax treaty bene-fits + also reduced withholding rates (both)

(iii) IRS is empowered to ask payees to obtain USA’s Taxpayer Identification Number (TIN) similar to India’s Permanent Account Number (PAN)

(iv) IRS is empowered to ask to file annual statement (return) in IRS from 1042 series for providing details of payments made to payees those located outside USA

85. USA’s state govt.’s + local govt.’s

(i) USA’s 50 states + District of Columbia + also several localities (all) are imposing different incomes based tax on corpora-tions

(ii) USA’s several states are imposing Franchise Taxes (FT) for having privilege of doing business in their state.

(iii) USA’s states FT rates are varied from 1^st state to 2^nd

(iv) USA’s FT is defined a tax based on net incomes or net worth or gross receipts or combination of these 3 tax bases (any).

(v) USA’s state taxes + local taxes are complex + also varied significantly from 1^st state to 2^nd state (all).

(vi) Corporation + also other business entities (both) are being suggested to review legal compliances in each state before selecting any state for commencing business activity.

86. USA’s Nexus based Jurisdiction

(i) USA’s taxpayers are required to opt their jurisdictions based on nexus like jurisdiction is treated in 1^st state when business is being operated from 1^st state beside actual amount of business activities as conducted in 2^nd state.

(ii) USA’s 1^st state is having right to tax on business incomes based on relationship between 1^st state and corporation beside business is being operated from 2^nd state

(iii) USA’s 1^st state is permitted to levy Income tax based on transactions when sufficient nexus is established between 1^st state and corporation beside corporation is operating business activities in more than 1 state

(iv) USA’s state jurisdiction or nexus is determined based on business activities operated in 1^st state or in 2^nd state for deciding right to impose Income tax on taxpayer

(v) USA’s state jurisdiction or nexus is based on 3 principal limitations like:

(a) S. Constitution’s limitations are found in due process clause

(b) S. Constitution’s limitations are found in commerce clause

(c) S. Constitution’s limitations are found in federal law (Public Law 86-272) under federal government’s power to regulate interstate commerce + also limitations when states are permitted to impose voluntarily.

• Requisite analysis may be varied considerably from 1^st state to 2^nd state + also independently based on corporation’s Permanent Establishment (PE) in USA for tax treaty purpose.

87. USA’s tax base

(i) USA’s states are imposing net Income tax on federal taxable incomes after NOL deductions as starting point.

+ (plus)

(ii) Also USA’s states are permitted to have own modifications to federal taxable incomes for calculating state tax base.

88. USA’s additions in in-comes

(i) USA’s some states are not permitted to add in incomes as interest on municipal bonds

(ii) USA’s municipal bonds are considered double exempt bond similar to exempt bonds being issued in India

(iii) USA’s state Income tax paid is to be deducted for computing federal taxable incomes.

(iv) USA’s most of states are permitted to impose state Income tax (only)

(v) USA’s some of states are permitted to impose their own taxes (only).

89. USA’s deletion in in-comes

(i) (a) USA’s taxpayers are permitted to delete interest incomes on USA govt.’s obligations like treasury notes or bills (any)

But

(b) USA’s taxpayers are not permitted to delete inter-est incomes on Gennie Maes + also Fannie Maes (both)

(ii) USA’s taxpayers are permitted to delete refunds of state income tax

(iii) USA’s some states are permitted to make specific rules for calculating depreciation + depletion + charitable contributions + interest deductions + also NOLs (all).

90. USA’s incomes apportionment

• USA’s taxpayers are permitted to determine apportionment based on certain clauses of law when corporations are having business activities in more than 1 state to assign apportionment to each state’s incomes

(i) USA’s commerce clause is empowered for fairly apportionment among states

(ii) USA’s each state has different rules for apportionment therefore uniform rules are not existed.

(iii) Substantial state-to-state variations are existed in USA.

(iv) USA’s states have developed different rules for different types of apportionment of incomes

(v) USA is permitting apportionment based on formula to be determined after comparing 1 or more than 1 factors representing 100% business activities within 1 state or more than 1 state.

(vi) USA is permitting apportionment based on aver-age of ratios for 3 factors like total sale + property + also payroll (all)

(vii) (a) USA has reset trend to consider total sale factor (only)

+ (plus)

(b) Also not to consider property + payroll factors (both)

(iii) USA’s some states have specified special factors to each industry like transportation + broadcasting + also print media (all)

(ix) USA’s some states are empowered to ask corporations to utilize different apportionment method when standard method is not suit-able.

(x) USA’s some states are considering inclusion of partnership apportionment factors + accounting treatments for foreign incomes + also sourcing of sales other than sales of tangible personal property (all).

91. USA’s expenses allocation

(i) USA’s taxpayers are permitted for expenses’ allocation against non business incomes when incomes not generated through regular line of business.

(ii) USA’s some states have specifically categorized certain types of in-comes like dividends for expenses’ allocation beside business incomes is existed or not existed (any)

(iii) USA’s some states have ignored distinction among business is existed or not existed (any).

(iv) USA’s some states have their own unique technology for allocation + also for apportionment (both) therefore being used vice-versa.

(v) USA’s certain incomes are not permitted for allocation therefore these are to be allocated to 1 state (only) based on state’s legal or commercial domicile or transaction (any) which has substantial connection like sale of non business real property being located in 1 state

92. USA’s state statutory fil-ing

(i) USA’s some states are imposing large variety for filing methods for group of commonly controlled corporations.

(ii) USA’s some states are requiring separate corporate returns for 100% corporations as engaged in business in their states

(iii) USA’s most states are requiring combination of some or 100% of commonly controlled corporations.

(iii) Combinations of returns are to include consolidated returns + also combined returns (both) which are varied significantly from state to state.

(iv) Consolidated returns are to include corporations which owned mini-mum 80% common ownership

(v) Combined returns are to include corporations which owned mini-mum 50% + also comprising unitary business (both).

(vi) Unitary businesses are to include a concept when states are required to verify relationship between different corporations to determine whether unitary business relationship is existed.

(vii) USA’s states are required to look on certain factors like economies of scale + functional integra-tion + line of business + also centralization of management (all) to determine whether unitary business relationship is existed or not existed

(viii) USA’s states are differently using certain terms + also meanings (both) like for consolidated + combined + also unitary (all) from state to state.

(ix) USA’s states observing that foreign entities are adding more layers of complexity

• Professionals are required to analyze states’ laws before fil-ing statutory documents for their clients.

93. USA’s State tax + sales tax + use tax

(i) USA’s 50 states + District of Columbia + approximately 10,000 local jurisdictions are imposing sales tax + also use taxes (all).

(ii) USA’s state sales tax is being imposed on retail sales for tangible personal property + also selected services (both)

(iii) USA’s state use tax is being imposed on use or consumption of same items.

(iv) (a) USA’s state sales taxes + also uses taxes (both) are being collected by seller when seller has physical presence in state thereafter seller is required to remit to state govt.

+ (plus)

(b) Also USA’s state sales tax + also use taxes (both) are being paid by purchaser when seller is not able to collect thereafter purchaser is required to remit to state govt.

(v) USA’s state sales tax + use taxes laws are applicable on 100% corporations + 100% industries + also on 100% states (all)

(vi) USA’s state sales tax + also use taxes (both) laws are applicable on 100% corporations beside incurring NOLs each year.

(vii) USA’s state sales tax + also use taxes (both) laws are constantly changing.

(viii) Professionals are required to analyze particular state’s law before completing legal compliances for their clients.

(ix) USA’s state sales tax + also use taxes (both) laws are allowing certain exemptions which are varied slightly or significantly from state to state beside few common exemptions are being allowed by 100% states.

94. USA’s resale exemption

(i) USA’s taxpayers are permitted to avail resale exemption against purchasing of property or service for resale when purchaser is not considered as final consumer or user (any).

(ii) USA’s taxpayers are required to pay sales tax or use taxes (any) when certain items taken for own uses

(iii) USA’s taxpayers are not permitted to avail resale exemptions on 100% businesses therefore exemptions are permitted on certain items (only)

(iv) USA’s few states construction contractors are required to pay use tax on property’s purchase + also services (both) when used for performing contracts.

95. USA’s exemption for machinery + equipment

(i) USA’s several states are allow-ing exemption for purchase of industrial machineries + also equipments (both).

(ii) Industrial machineries + equipments are to be directly + also primarily used (all) for processing tangible personal property which is to be sold.

(iii) Industrial machineries + also equipments (both) are required to demonstrate direct effect on product or cause a direct effect (any).

(iv) USA’s some states are allowing exemption for repairs of industrial machineries + equipments + consumption of electricity + also natural gas (all) which are being used for industrial processes.

96. USA’s exemption for R&D machineries + equipments

(i) USA’s some states are allowing exemption for purchase of industrial machineries + equipments which are to be used for Research and Development (R&D) + tax-advantaged (enterprise) zones + pollution control + also provision of renewable energy (all).

+ (plus)

(ii) Also USA’s some states are allowing exemption for certain industries like: Govt. contracting

97. USA’s sales tax principle

(i) USA’s state sales tax is applicable based on nature of taxable property or service + also location of sale (both).

(ii) USA’s state sales tax is varied from state-to-state specifically for developing industries like some states are presently struggling with application of sales tax + also use tax on cloud computing (both).

98. USA’s questions & answers on sales tax principle

(i) Whether cloud computing is transfer of tangible assets or service + amuse-ment + communications + some hybrid of abovementioned items?

(ii) Whether goods or services are taxable when uses are happened in multiple locations across the country?

• Answers of abovementioned questions are varied from state-to-state.

99. USA’s State tax nexus established in South Dakota Wayfair in Supreme Court

(i) USA’s state sale tax nexus are often being addressed through analyzing for area of sale tax liability + also quantum of sale tax (both).

(ii) USA’s different corporations have their different arguments (opinions) like:

(a) For filing of state incomes + also franchisees incomes (both)

(b) For filing of sales tax + also use tax (both)

(c) For filing of gross receipts in tax return

100. USA’s judgements in South Dakota v. Wayfair in Supreme court

(i) (a) USA’s supreme court has pronounced on June 21, 2018 that states are permitted for imposing sales tax + also use tax (both)

+ (plus)

(b) Also permitted for collection + remittance (both) responsibilities are to be levied on remote sellers based on their economic presence in state.

(c) Wayfair’s decision has changed definition of nexus between sales tax + use tax and state therefore it’s affected most of USA’s most of taxpayers + also industries (all)

(d) USA’s most states have provided new laws + also guidance (both) in accordance with Way-fair decision held in early 2019 in anticipation that Wayfair’s decision to effect between states incomes and franchise tax nexus.

(ii) 100% inbound (domestic) businesses are close observant for final effect of Wayfair’s decision.

(iii) Wayfair’s decision is effecting USA’s domestic entities + foreign entities for new collections + remittances + also reporting requirements (all).

101. USA’s chart for Federal Taxable In-comes (FTI)

Federal Taxable Incomes (FTI)

↓

Modifications in FTI

↓

Adjusted Federal Taxable Incomes (AFTI)

102. USA’s chart for Apportioned Business In-comes (ABI)

Apportioned Business Incomes (ABI)

+ (plus)

Also Allocated Non-Business Incomes (ANBI)

↑                            ↑

ABI               ANBI

↑                           ↑

Identification of Business Incomes (BI)

+ (plus)

Also Non-Business Incomes (NBI)

10.3 USA’s chart for Tax Due (liability)

State Taxable Incomes

(STI)

↓

Multiply by applicable rate(s)

– (minus)

eligible Credits

↓

Tax due (Tax liability)

(F) USA’s Role for Indian entities for doing business

104. USA’s businesses by Indians

(i) Indian business entities are already aggressively set up their subsidiary or planning to set up subsidiary in USA.

(ii) Indian business entities are aggressively setting up their subsidiaries because USA is world’s largest economy + having friendly business environment + international recognizable credentials + also many more associated benefits (all).

(iii) Indian business entities initially enter-ing into businesses with their USA’s subsidiaries.

(iv) Indian business entities gradually enter-ing into business with non subsidiaries entities in USA + also outside USA (both).

(v) Indian business entities are required to obey proper regulatory compliances like Transfer Pricing (TP) regulations + also Arm Length Price (ALP) principles (both).

105. USA’s businesses by Indian Associated Enterprises (AEs)

• 2 enterprises are to be treated AE when certain conditions as specified under section 92A of ITA, 1961 are satisfied like:

(i) When 1^st enterprise is participating directly or indirectly or through 1 or more than 1 intermediaries for its management or control or capital (any) of 2^nd enterprise.

(ii) When 1^st enterprise + also 2^nd enterprise (both) are being managed by same person(s) through participating directly or indirectly or through 1 or more than 1 intermediaries for its management or control or capital (any).

(iii) When 1^st enterprise is holding minimum 25% voting powers of 2^nd enterprise through directly or indirectly (any)

(iv) (a) When minimum 26% voting powers of 1^st enterprise + also 2^nd enterprise (both) are hold by same person

+ (plus)

(b) Also given loan from 1^st enterprise to 2^nd enterprise for minimum 51% of book value of total as-sets (both)

(v) When guarantee given against loans from 1^st enterprise to lender of 2^nd enterprise for minimum 10% of total borrowings.

(vi) When minimum 50% Board of Directors (BoDs) or members of governing board or 1 or more than 1 Executive Directors (ED) or Executive members of governing body are appointed by 1^st enterprise for 2^nd enterprise.

(vii) When minimum 50% Board of Directors (BoDs) or members of governing board or 1 or more than 1 Executive Directors (ED) or Executive members of governing body are appointed by same person(s).

(viii) When 100% manufacturing or processing of goods or articles or business as carried by 1^st enterprise who is 100% dependent on use of know-how or patents or copyrights or trade-marks or licenses or franchises or any other business or commercial rights of similar nature or data or documentation or drawing or specification relating to patent or invention or model or design or secret formula or process (any) is 100% owned by 2^nd enterprise.

(ix) (a) When minimum 90% of raw materials + also consumables as required for manufacturing or processing of goods or articles as carried by 1^st enterprise are being supplied by 2^nd enterprise or by persons specified by 2^nd enterprise (any)

+ (plus)

(b) Also prices + other conditions (both) for supply of 1^st enterprise are influenced by 2^nd enterprise.

(x) (a) When goods or articles as manufactured or processed by 1^st enterprise are being sold to 2^nd enterprise or to persons as specified by 2^nd enterprise

+ (plus)

(b) Also prices + other conditions (both) for supply of 1^st enterprise are influenced by 2^nd enterprise.

(xi) When 1^st enterprise + also 2^nd enterprise (both) are controlled by individual or his relative or jointly by individual + his relative (any)

(xii) When 1^st enterprise + also 2^nd enterprise (both) are controlled by Hindu Undivided Family (HUF) or his relative or jointly by HUF + his relative (any)

(xiii) When 1^st enterprise is firm or Association of Persons (AoPs) or Body of Individuals (BoI) is holding minimum 10% in 2^nd enterprise like firm or AoPs or BoI (any)

(xiv) When 1^st enterprise + also 2^nd enterprise (both) have relationship for mutual interest as may be specified by India’s govt.

106. India’s Associated Enterprises (AEs) test

(i) Enterprise is permitted to determine whether AE is existed or not exist-ed

+ (plus)

(ii) Also transactions are incurred during financial year thereafter to comply provisions as applicable under ITA, 1961.

107. India’s statutory compliances

(i) Obtaining Statutory audit report under Companies Act (CA), 2013

(ii) Obtaining Tax audit report under In-come Tax Act (ITA), 1961

(iii) Obtaining Transfer Pricing (TP) study report + also audit (both) under ITA, 1961

(iv) Filling transaction report to Income Tax Department (ITD) in form 3CEAA

(v) Filling Income Tax Return (ITR) under ITA, 1961

(vi) Filling Annual Performance Report (APR) under RBI Act, 1934

(vii) Filling Quarterly TDS returns in Form 24Q + 26Q + 27Q + also etc. (all)

(viii) Fulfilling legal compliances under GST + PF + ESI + PT + also etc. (all)

(ix) Fulfilling legal compliances under CA, 2013 in AOC4 + MGT7 + MSME + DPT3 + also etc. (all).

108. India’s Overseas Direct Investments (ODIs) regulations

(i) Indian Entity (IE) is not permitted to in-vest outside India under RBI circular RBI/2022-2023/110 A.P. {DIR Series) Circular No.12.

(ii) IE (generally) not making transaction for promoter’s capital contribution (subscription) for C-Corporation or LLCs therefore treated no capital contribution by promoter under FEMA, 1999 Regula-tion.

(iii) (a) USA’s registered agents are permitted to show for initial investment as cash contribution in incorporation documents like Operating Agreements + Articles of Organization + also etc. (all)

But

(b) RBI is not allowing for initial investment as cash contribution therefore these are treated as invalid + also violation of FEMA, 1999 Regulation (both)

(c) IE is mandatory required to remit initial investment through India’s Authorized Dealer (AD) banks.

(G) USA’s special authorized activities for doing business

109. USA’s Duty Free Zones (DFZs)

(i) USA’s DFZs are known as designated sites licensed by FTZ Board where special customs procedures are to be used similar to Special Economic Zones (SEZs) in India.

(ii) FTZ board is empowered to design procedures for permitting goods from out-side USA for warehousing or altering similar to area as notified outside USA’s Customs territory.

(iii) (a) Goods stored in FTZs are enjoying duty-free status till these are entered in USA’s Customs territory

+ (plus)

(b) Also goods stored in FTZs are enjoying duty free status till these are transferred from 1^st FTZ to 2^nd FTZ.

• USA’s custom duty is to be paid when goods are ultimately imported into USA’s Customs territory

110. USA’s Maquiladoras programmes

(i) USA has permitted duty free in-bound manufacturing for more than 3000 companies for operating under special provisions of Mexican law when goods are re-exported to USA after processing or assembling (any) in Mexico

(ii) USA’s maquiladora program is permitting for components to be imported from USA for processing or assembling (any) in Mexico thereafter to be re-exported to USA.

(iii) Mexican law is permitting imports from USA for processing or assembling (any) in Mexico under maquiladora program.

(iv) USA is collecting import (custom) duties on value added (only) in Mexico.

(v) Mexico’s most of maquiladora facilities are located on USA-Mexico border though plants installed in central + also southern Mexico (both).

(vi) (a) Many Caribbean + also Central American countries (both) have also implemented maquiladora program for accessing USA’s market

+ (plus)

(b) Also in non-USA market where manufacturers are desiring lower cost of production + for accessing USA’s market (both).

111. USA’s Exports

(i) USA’s most items are permitted for exports without export licenses or regulations (any)

(ii) USA’s few strategic items are not permitted for exports without export licenses or regulations (any)

(iii) USA’s exporters are required to research in advance to determine for restrictions are applicable (if any) when export licenses or regulations are required like:

(a) USA’s business formation structure for export is easy

+ (plus)

(b) Also USA’s business for export is permitted without citizenship or residency of owner (any)

(v) USA’s most states (jurisdictions) are permitting several legal entities for export

(vi) USA’s most export businesses are being operated through corporation (company) structure by USA’s residents + also by non-residents (both)

(v) USA’s exporters are required to have consultation from experienced international tax specialist for long-term global tax savings.

(vi) USA is permitting fast process for registering business entities even within 1 day.

(vii) USA’s attorney be used for registration function + also to advise on other legal requirements (both)

112. USA’s Acquiring business

(i) USA is permitting for buying existing running business through purchase of assets or purchase of ownership interests in entity (any).

But

(ii) USA’s tax consequences are to be critically examined be-fore acquiring existing running business.

113. USA’s private place-ment

(i) USA is permitting buying for minimum 5% of publicly traded securities

Or

(ii) Securities of corporations having minimum 500 shareholders are required to file information’s with Securities and Exchange Commission (SEC).

+ (plus)

(iii) Also filing be containing certain information’s like source of funds + purpose for placement + future plans + present beneficial interest + also shares acquired within last 60 days (all).

• Public placement (buying) is permitted with additional information’s.

114. USA’s public place-ment

(i) USA is permitting buying for minimum 10% of publicly traded corporation’s securities with filing of information’s with SEC.

(ii) USA’s disclosures can’t be avoided through 3^rd party purchases.

(iii) USA’s some states are required certain information’s for filing against tender offers as directed toward firms those have substantial assets within their holdings.

(iv) USA’s filing for preparing public stock offering is required substantial time + expenses to raise capital therefore required assistance from key personnel similar to Key Managerial Personal (KMP) + also outside professionals (all).

(v) USA’s filing registrations are required 100% + detailed disclosures + also financial information’s (all) to meet SEC’s requirements.

(H) USA’s Visa for foreign employees + other foreigners

115. USA’s Foreign employees

(i) USA is not restricting on numbers for foreign employees working in corporations when employees have satisfied federal entry + also work permit (both) requirements.

(ii) (a) USA is imposing substantial penalties on employers for employment without proper documents

+ (plus)

(b) Also USA’s 100% employers are responsible to check documents (both).

116. USA’s Visa for foreign employees

(i) USA’s 100% details for federal entry requirements for various types of activities are available with USA’s consulates across the world + also with USA Citizenship and Immigration Services (USCIS).

(ii) USA’s foreign employees are required to get approval from USA department of labor for verifying shortage of able workers in each job category.

(iii) USA’s foreign employees are required to take guidance’s from US immigration law specializing lawyers for working + al-so earning wages in USA (both).

117. USA’s business visitor Visa (B-1)

• USA is permitting for 1 year temporary business visitor visa (B-1) for entry by foreign investors for certain activities (only) like:

(i) For surveying business opportunities in USA

(ii) (a) For attending meetings + also consultations (both) with business associates in USA

But

(b) Not permitted for earning incomes + also generating employments (both) in USA.

(iii) USA is permitting 6 months extension therefore maximum permitting for 18 (12+6) months under temporary business visitor visa (B-1).

118. USA’s trade vi-sa (E-1)

(i) USA is permitting 1 year trade visa (E-1) for individuals those are involved in substantial trades or investments

(ii) USA’s trade visa (E-1) holder is required to work as executive or holding managerial position or possessing specialized knowledge (any) as essential to his USA’s position.

(iii) USA is permitting 1 year extension for trade visa (E-1) therefore maximum permitting for 2 (1+1) years under trade visa category.

119. USA’s treaty investor vi-sa (E-2)

(i) USA is permitting 1 year treaty investor visa (E-2) for citizens of countries having treaties for commerce + also navigation (both) with USA.

(ii) USA’s treaty investor category visa (E-2) holder is required to work as executive or holding managerial position or possessing specialized knowledge (any) as essential to his USA’s position.

(iii) USA is permitting 1 year extension for treaty investor visa (E-2) therefore maximum permit-ting for 2 (1+1) years under treaty investor

120. USA’s Intra-company transfers visa (L-1)

(i) USA is permitting 3 years Intra company transfers visa (L-1) for executives + managers + also specialists (all) those already employed for minimum 1 year

+ (plus)

(ii) Also abovementioned employee’s services are required for USA’s subsidiary or affiliate of foreign corporation.

(iii) USA is permitting extension based on demonstration for need

121. USA’s visa for scholars + professionals (H-1)

• USA is permitting H-1 visa for scholars + also professionals (both) those are desiring entry for performing specialized services.

122. USA’s visa for individuals’ jobs (H-2)

• USA is permitting H-2 visa for individuals to perform temporary + also seasonal (both) jobs.

123. USA’s visa for individuals’ training (H-3)

• USA is permitting H-3 visa for individuals’ to visit temporarily to receive training.

124. USA’s Immigrant vi-sa

(i) USA is permitting immigrant visa for permanent residence for foreigners based on system of preference within annual quota limitations.

(ii) USA is permitting immigrant visa for permanent residence for foreigners based on relationships with USA’s citizens or green card holders or profession or occupation (any) + also relationship with USA’s employers (both).

125. USA’s References + links

(i) U. S. Census Bureau. Foreign Trade–Top Trading Partners

https://www.census.gov/foreign-trade/statistics/highlights/top/top1812yr.html

(ii) S. Census Bureau. (nd.). American Fact Finder

https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml

(iii) Bureau of Labor Statistics-Labor Force Statistics from the Current Population Survey

https://data.bls.gov/timeseries/LNS11000000

(iv) Central Intelligence Agency-The World Fact Book–United States

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

(v) U. S. Census Bureau. Foreign Trade–Top Trading Partners

https://www.census.gov/foreign-trade/statistics/highlights/top/top1904yr.html

(vi) Office of the United States Trade Representative-Generalized System of Preferences (GSP)

https://ustr.gov/issue-areas/trade-development/preference-programs/ generalized-system-preference-gsp

(vii) International Trade Administration-Foreign Trade Zones

http://trade.gov/enforcement/ftz/

 (iii) Cañas, Jesus, Roberto A. Coronado, Robert W. Gilmer, and Eduardo Saucedo-The Impact of the Maquiladora Industry on U.S. Border Cities-Federal Reserve Bank of Dallas

https://www.dallasfed.org/assets/documents/research/papers/2011/wp1107.pdf

(ix) United States Department of Labor-Wages

http://www.dol.gov/dol/topic/wages/minimumwage.htm

(x) Bureau of Labor Statistics-Union Members—2018

http://www.bls.gov/news.release/union2.toc.htm

(xi) United States Department of Labor-Wages

http://www.dol.gov/dol/topic/wages/minimumwage.htm

(xii) Bureau of Labor Statistics-Union Members—2018

http://www.bls.gov/news.release/union2.toc.htm

(xiii) Social Security Administration-Retirement Planner: Benefits by Year of Birth

http://www.ssa.gov/retire2/agereduction.htm

(xiv) Central Intelligence Agency-The World Fact Book – United States

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

(xv) National Center for Education Statistics-Fast Facts

https://nces.ed.gov/fastfacts/#

Conclusion: Navigating the complexities of doing business in the USA requires a thorough understanding of its market, legal structures, and tax systems. This guide aims to equip foreign investors with the knowledge needed for a successful venture, covering 125 FAQs that address key aspects of doing business in the USA. Whether you’re establishing a presence, considering different business structures, or ensuring legal and tax compliance, this guide is your comprehensive resource for making informed decisions and achieving long-term success in the dynamic American market.

*****

(Author can be reached at email address satishagarwal307@yahoo.com or on Mobile No. 9811081957)

Disclaimer : The contents of this article are solely for informational purpose. Neither this article nor the information as contained herein constitutes a contract or will form the basis of a contract. The material contained in this article does not constitute or substitute professional advice that may be required before acting on any matter. While every care has been taken in the preparation of this article to ensure its accuracy at the time of publication. Satish Agarwal assumes no responsibility for any error which despite all precautions may be found herein. We shall not be liable for direct, indirect or consequential damages if any arising out of or in any way connected with the use of this article or the information as contained herein.