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Doing Business in the U.S.: What All Businesses Need to Know

Each new year brings a sense of hope, energy and opportunity. For all businesses, that means a renewed focus on growth. That often means going global. Organizations decide to be global for a combination of reasons — access to new markets; diversification; to gain a competitive edge. Sometimes an organization’s first step into an international market is at the beckoning of a leading customer’s request.

Indeed, the opportunity to grow top-line revenues, achieve greater economies of scale and strengthen the overall enterprise is great. However, as we look at the changing landscape of global trade, we see that it’s not what globalization and global pressures will do for an organization but what it’ll do to them if they don’t properly prepare, plan and adapt.

Baker Tilly understands change is a trigger for growth-minded organizations to evaluate their strategies and the tactics that follow. In this article we offer a road map to guide companies looking to do business in the U.S.

Small business cybersecurity risk: cyberattacks don’t care how big your business is

When it comes to cyberattacks, the assumption is only large organizations like banks, hospital systems and multinational companies are affected. But that just isn’t the case. The pandemic forced all types of businesses to quickly move online whether or not they had the right cybersecurity in place, opening small businesses to increased risk.

In fact, the FBI’s cyber division reported a 400% increase in cyberattacks in 2020 over pre-coronavirus times, so it’s no surprise that 58% of small businesses have experienced at least one security or data breach, according to a 2021 report from the Identity Theft Resource Center (ITRC).

And if your company doesn’t have a business continuity plan in place, any kind of breach can be costly: Nearly 45% of small businesses paid between $250,000 and $500,000 to cover the costs of the breach, while 16% spent between $500,000 and $1 million.

Just the immediate aftermath of a cyberattack can be paralyzing to a small business since their systems could be down for possibly days or even a few weeks. All of a sudden, it’s not only customers that are affected, but also employees and vendors.

Furthermore, one frightening statistic from Cybercrime magazine said that 60% of small businesses struggle to recover and have to close up shop within six months of a data breach or cyberattack.

Should the business survive, it typically takes them years to recover. The report from the ITRC said 42% needed one to two years to return to normal, and 28% needed three to five years to fully recover.

We haven’t even addressed the possibility of being sued by one of your customers for compromising their data, but that is a very real and very costly possibility.

All of that said, small businesses can avoid the bulk of these issues with proper planning.

First, a small business needs to acknowledge it could be a victim of a cyberattack. The vast majority of small businesses have no cyber liability insurance or any money set aside in case of such an attack, much less a comprehensive plan in place for how to deal with one.

Often, small businesses don’t employ IT staff or if they have, they designated someone as their technology support person who isn’t actually qualified in the first place. Sometimes, they outsource the role but don’t spend time determining what that third party’s responsibilities are and aren’t aware that backing up data or updating certain systems are not considered part of their purview. Read more.

Managing multistate HR and payroll compliance for today’s remote workforce

A little more than three years ago, everything changed about the way we live and work.

One day, we were talking face-to-face with our friends and family. The next day, we were six feet apart. Masks quickly became a staple of our everyday lives. And the idea of going to restaurants, schools and stores suddenly became more of a fantasy than a reality.

Additionally, there was a massive shift in the way we work. The COVID-19 pandemic rattled everything we knew about our jobs – not only the location from which most of us worked, but also the way we communicated with coworkers, the use of technology to do our jobs and many other aspects, including the way we attract, hire and retain employees.

These changes were presented as short-term realities at the time, although we now realize that many of these adjustments are here to stay – or, at the very least, they are going to stick around for longer than we originally expected.

While the idea of working remotely existed prior to the arrival of COVID-19, the pandemic certainly brought the concept front and center for many employers as it emerged as a national issue. It quickly became obvious that the way we work was changing and that companies were going to have to swiftly adapt to keep up. Read more.

Spend more time growing your business than running it.

As a business owner, you likely feel constant pressure to maximize revenues and create an efficient, scalable operating model that can also withstand the challenges and risks that come with running a business. However, according to a pulse survey on time management [1], most business owners spend an average of almost 70% of their time on administrative tasks and employee issues instead of strategic growth efforts.

What if you could increase new opportunities and revenue by maximizing the time you spend working on the business instead of in the business?

It starts with freeing you up from the operational complexities and responsibilities related to taxaccounting, and human resources (HR) — three essential functions of every business. Read more.Pulse Survey: Time Management, The Alternative Board, December 2015.

Global dealmakers 2023: Europe M&A market update

Global M&A markets have endured a difficult year, and European dealmaking has been no exception. Rising interest rates, high energy costs and geopolitical uncertainty have been just a few of the myriad challenges facing corporate and private equity dealmakers in recent months. The full report drills down into the details of last year’s M&A markets and explores the outlook for 2024.

In 2024, several structural and strategic drivers will be at play in the European M&A market. Read more.

Customs & Global Trade

Whether your business is expanding globally or simply growing sales by volume or location, Baker Tilly offers services that make global trade compliance easy, so you can blaze forward without losing momentum. Read more.

Site Selection

Autel Energy, an international company providing electric vehicle (EV) products and services, engaged Baker Tilly to assist in locating its first U.S. production facility as part of the EV movement being pushed by the federal government to create a nationwide network of electric vehicle charging stations. Read more.

Inflation Reduction Act: what’s new and why it matters

The Inflation Reduction Act (IRA) created game-changing opportunities through energy incentives and tax credits. In the year since the IRA was signed into law, there have been significant updates in guidance and regulations. Read more.

Transfer Pricing

In today’s global environment, transfer pricing matters have become a crucial discussion point for all corporate taxpayers. Multinational businesses face increasing scrutiny from tax authorities as ever-changing guidelines broaden regulatory requirements. Read more.

Connect with us

Ready to take next steps in going global? Contact our specialized team members below. We’re here to help!

Fred Massanova, East Region Managing Partner – fred.massanova@bakertilly.com

Gideon Gradman, Managing Director, Energy & Infrastructure Group – gideon.gradman@bakertilly.com .

Robert Jaffe, Director of Business Development & BABCPHL Board Member – robert.jaffe@bakertilly.com

Joseph C. Pellerite, Partner, Baker Tilly Advantage – joe.pellerite@bakertilly.com

Ryan Onushco, Senior Manager, Business Development – ryan.onushco@bakertilly.com

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