Like a Family Doctor:
Our Role in Guiding Your Business
with Expert Collaboration
"One-Stop Support"
For clients aiming to expand into the U.S., we offer comprehensive “One-Stop Support.” This includes everything from company registration and incorporation, to tax consulting, human resources support, and assistance with financial and accounting tasks, all managed through outsourcing. Additionally, we connect clients with appropriate experts, such as immigration attorneys for visa applications, as well as professionals for human resources, real estate, and M&A needs.
When establishing a U.S. subsidiary, a Registered Agent is required to receive and forward important notifications and legal documents from state authorities to the company. As an approved Registered Agent in California, we can provide this service nationwide through our partners.
Expanding into the U.S. market involves multiple steps and processes, making it challenging to manage alongside your core business operations. To help clients navigate this, we provide a central point of contact for all necessary legal procedures, ensuring efficient business setup. Before diving into specific actions, we also take the time to discuss the U.S. market landscape with clients and offer personalized support tailored to their unique needs.
What to Consider When Using Accounting and Outsourcing Services
Instead of fully outsourcing back-office tasks, business owners should take an active role in understanding not only their financial performance and costs but also their accounting and tax matters. It’s important to stay informed about the cash flow within the business and keep track of any regulatory changes that may impact the company.
When deciding to outsource, it’s essential to take the time to clearly define the terms of cooperation between the business owner and the service provider. Switching providers mid-business can cause disruptions, so establishing a long-term partnership from the beginning is vital. Be prepared to renegotiate contracts before they expire, and having a flexible agreement benefits both parties. Encouraging the provider to pursue continuous improvement and innovation will help ensure that the business owner can more easily adapt to any changes in circumstances.
The Journey to the Merger with Shimomura Accounting Firm
In 2024, POSI merged with Shimomura & Co., CPAs, founded by Masaki Shimomura. Known for its team of specialists who could handle a wide range of services—from payroll to tax and accounting audits—this firm was a perfect fit for small and medium-sized business clients. We saw this as an opportunity to pass on these technical skills and capabilities to POSI’s younger generation of employees.
Moreover, Shimomura Accounting Firm had a strong presence in the New York area, which created a strategic advantage for POSI, based in Los Angeles, in terms of expanding its footprint. However, the most critical factor behind the merger decision was the alignment of management values between Shimomura and myself. Despite receiving attractive M&A offers from other parties, Shimomura chose to prioritize a merger partner who could offer a supportive work environment for employees. This led them to select POSI.
From a branding perspective, we decided to unify under the name “POSI.” When considering the long-term vision of the firm, having a personal name in the company’s name can often evoke an image of individual leadership and a more founder-driven business. Both parties agreed on this approach after careful deliberation, with the understanding that a merger, regardless of company size, is about combining strengths to create something greater. The final decision regarding the company name was reached through mutual agreement, reflecting our shared vision for the future.
The Benefits and Considerations of Mergers
The Benefits and Considerations of Mergers
U.S. continues to experience population growth and remains a geopolitically strong nation. For businesses seeking sustainable, long-term growth, establishing a base in the U.S. is becoming increasingly essential. In Japan, we often enjoy a sense of stability with little visible change, and while government criticism is common, there is a tendency to accept the status quo. However, from an external perspective, issues such as the recent depreciation of the yen and geopolitical tensions with neighboring countries highlight the growing instability within Japan.
One key advantage of expanding into the U.S. is the opportunity to diversify and mitigate rising risks. Japan is often described as being “Galapagos-ized”—its exceptional products and services are not reaching international markets due to a lack of focus on global expansion. Many Japanese businesses wonder, “If our products are so great, why aren’t they selling in the U.S.?” The answer lies in a failure to properly analyze and adapt to local markets. While some companies are already conducting remote operations with the U.S., they often fail to establish a physical presence, leading to a disconnect between their expectations and the reality of the market. By establishing a base in the U.S. and gaining firsthand insight, businesses can better understand global demand, developing a deeper intuition for what the world is seeking.
Additionally, by setting up a subsidiary in the U.S., companies can position themselves as “global players” both at home and abroad. This boosts brand recognition and, in terms of recruitment, makes the company more appealing to younger, internationally-minded talent. Therefore, establishing a U.S. subsidiary can be a highly advantageous move for businesses looking to expand their global presence.
Advice for Expanding Your Business into the U.S.
It’s essential for the business owner, rather than a project manager or agent, to take the lead and actively drive the expansion into the U.S. A successful example of this can be seen with major Japanese electronics manufacturers. The leadership at these companies personally moved to the U.S., developed local markets, and took charge of their local subsidiaries, which ultimately contributed to their growth into global enterprises. Having the top executive in the field, actively involved in crafting the business plan, is crucial for success.
In addition, here are some specific pieces of advice: Before expanding, make sure to conduct thorough research and ensure you comply with U.S. rules from the very start. For example, even in the early stages of auxiliary activities in the U.S., such as conducting market research, it’s essential to obtain the appropriate visa before entering the country. If your activities are deemed business operations in the U.S., you could be subject to taxation, even if you don’t have a physical office in the country. Furthermore, establishing a corporation in the U.S. could lead to the classification of your business activities, previously conducted in Japan, as U.S.-sourced commercial activity, potentially raising tax-related concerns. It’s important to consult with an accountant beforehand to avoid any issues.
When selecting a state to incorporate your business, many companies opt for Delaware due to its favorable corporate laws for executives and investors. However, we generally recommend incorporating in the state where your actual business operations will be based. This is because if you establish your business in one state but operate in another, you’ll need to register in that other state, leading to additional paperwork, double taxation, and other administrative burdens that can incur extra costs.
What's Your background?
I originally worked at a major accounting firm, Deloitte, but in 1990, I founded Horita & Company and became an entrepreneur. Later, my former colleague from Deloitte, Saito, and Riesenberg, a highly experienced tax expert in the industry, joined the firm. In 2000, we renamed it Horita Riesenberg Saito Accounting Firm. Over the 20 years I spent there, the firm grew rapidly. As the organization expanded, the needs of our clients also broadened, and much of the work began to focus on supporting and maintenance of established corporate clients. Of course, this was the kind of service large companies were seeking, but when I reflect on my reasons for going independent, I realize I had a strong desire to support entrepreneurs and help small and medium-sized businesses grow. So, once the firm was on stable ground and everything was in place, I decided to entrust the firm to five partners and join POSI, which focuses on supporting small and medium-sized enterprises. Today, I feel a great sense of fulfillment in being able to provide flexible, client-centered services.
What are your future goals?
As AI technology continues to advance, accounting tasks are increasingly seen as jobs that may be replaced by automation. In this context, I constantly think about how we can continue to be relevant as a business owner. As professionals, our mission is not to first set revenue targets, but to prioritize responding to our clients’ needs with a customer-centric approach. I believe this is what supports both our personal growth and the growth of our organization.
Furthermore, when it comes to building an organization, our goal is to create a work environment that promotes work-life balance and a sustainable workplace where employees can live stable and happy lives. In addition, I hope to contribute more to Japan in the future. I believe that as people who have gained experience here return to Japan, it will help revitalize Japanese businesses. Moving forward, I aim to continue supporting the global expansion of Japanese companies and entrepreneurs.
❶ What is your recommended book?
“Unlocking Tanni-sho” (Written By Kentetsu Takamori)
❷ What is a daily habit of yours?
Listening to podcasts before going to sleep.
❸ What is your motto?
“Wagen Aigo Senni Jomon” (Engaging with others through a friendly smile and kind words, and striving to anticipate their needs before they express them.)
Yoshimasa Hotta
After working as a Senior Manager at Deloitte & Touche (now Deloitte), he founded Horita & Company (now Horita Riesenberg Saito) in 1990. He played a key role in establishing POSI, which aims to provide “flexible and client-centered services.” He has held his current position since 2011. He is a Certified Public Accountant (CPA) in the U.S. and holds the Investment Advisor Representative (IAR) qualification. His hobbies include gardening, and he enjoys serving meals made with vegetables and fruits he grows in his own garden.
“Starting and Running a Business in America: A Guide to Acquisitions and Going Public Benricho”
The latest edition of the “Benricho Book Series,” a business and lifestyle information magazine for Japanese residents living in the U.S.! It introduces each process necessary for establishing a company in the U.S., regardless of the size of the business.
