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Boca Raton News

ARTICLE

Date ArticleType
9/23/2020 General
Legal Issues to Consider for Businesses Expanding

Some Legal Issues that Must be Considered for Businesses Expanding to South Florida

We in Boca Raton are well-poised to attract foreign business and real estate investors – sometimes they are one and the same and sometimes they are exclusive of each other. This still rings true in spite of – or maybe in light of – the pandemic, and South Florida continues to hold appeal for investors and business owners seeking to expand their reach, whether from afar (virtually) or from nearby (in person)

The appeal of international expansion has become increasingly attractive in today's global marketplace with the so-called laptop lifestyle that in reality is a rather elusive concept to many of us, no matter how hard we try to achieve it. Companies, business owners and real estate investors must also be aware of the many inherent risks associated with such expansion, and a failure to pay attention to these risks will no doubt lead to failure whether over the short- or long-term.

Some of the most important considerations center around the multitude of legal and regulatory issues that must be considered when going global. These issues are significant  and can prove overwhelming, and if not handled properly they can spell the demise of your expansion plans. For example,
• What type of entity(ies) should you set up? How many do you need?
• If you sell products, do you need FDA or other approvals (Food and Drug Administration) in the U.S.?
• What are the import-export rules and are there tariffs or duties to consider?
• What are licensing agreements and do you need them for your expansion endeavors?
• Are there franchise or other issues involved that need to be addressed?
• If you are setting up a business that may cross state lines - are there intra-state issues to consider?
• What are the tax implications of setting up the business and how will they be handled?
• How will funds be transferred from one country to another and are there currency restrictions or conversion issues to address?
• How different are the employment laws in the target country and how to you ensure that you properly handle them?
• Will you hire employees? Independent contractors? What are the implications of these choices and what are your obligations?
• If you are a real estate investor, what professionals should you work with and how can you ensure that your transactions are successful?
• Have you considered tax issues? How do they impact your business expansion?

Expanding across borders without considering these critical issues can not only spell business disaster, but also legal disaster, which can translate to huge financial implications, fines, and perhaps other legal ramifications. It is always recommended to not only seek legal advice from counsel in your home country, but also from the country(ies) into which you are expanding.

Serial entrepreneur Lauren Cohen is an International Lawyer, Realtor and Cross-Border Expert. Originally from Toronto and now living and serving clients from her e-Council Global headquarters in Boca Raton, Lauren is also a best-selling author and sought-after speaker. Real estate investors and entrepreneurs hire Lauren and her turnkey team as she believes in overcoming obstacles and navigating business and investment offering turnkey solutions designed to ensure that clients are able to invest, live, work and play across borders.

e-Council Global/e-Council Inc.com’s website (ecouncilinc.com/goglobal), newsletter and other forms of communication contain general information about legal matters. The information is not legal advice and should not be treated or construed as such. Please do not rely on the information contained herein or on any of e-Council Global or e-Council Inc.’s publications as an alternative to legal advice from your attorney or other professional legal services provider. Any specific questions about legal matters should be referred to an attorney or other professional legal services provider.