FAQ
Below you’ll find answers to the questions we get asked the most about our services.
Expand Your Business to the U.S.
How to form my new business entity?
There are four ways to set up your new entity:
- Hire a qualified U.S. attorney – Most expensive. Usually, no tax consultation is included or available.
- Use an incorporation service – Inexpensive but filing service only in a formulaic way. Preparation of documentation such as bylaws, resolution minutes, and consultations are not available or limited.
- Do it yourself (not recommended) – Not efficient and your risk is too high.
- Use POSI – Anyway, please check with us first.
Do owners and/or officers of U.S. Business need to be U.S citizens or residents?
No. U.S. Businesses can be created without regard to the citizenship or residency of the owners and the officers of the business.
Is a U.S. Business entity required to have a physical location?
No. However, you need to appoint a Registered Agent in the state where your entity is registered. In the following question, a Registered Agent is explained.
What is a Registered Agent?
A Registered Agent is a business or individual designated to receive service of process (SOP) when a business entity is a party in a legal action such as a lawsuit or summons. Law in most states requires that every business entity maintain a Registered Agent who resides in the state and has a physical street address. POSI is a California Registered Agent, and through our affiliates, we provide Registered Agent service in all states.
What are the most common U.S. business entities among international investors?
The following are the common entity types.
- Corporation<
- Limited liability company
- Partnership
- Joint venture
- Branch
- Sole proprietorship
How a branch or a representative office in the U.S. is treated?
There are no formal federal requirements for a foreign person to establish a branch or a rep. office in the U.S. A branch or rep. office may also have to register with the states in which it does business and obtain a federal tax identification number. That said, U.S. branches of foreign business enterprises may be required to obtain certain permits to conduct certain types of business operations in particular localities. A home company of the branch is not protected against liability caused by the branch or rep. office. Because of the risk, creating branches and rep. offices are usually not recommended for international business.
In which state my business should be incorporated?
Incorporation in the U.S. is done at the state level. While you can choose from any of the 50 states, one state stands out: Delaware. More than half of all publicly-traded companies in the United States and 64 percent of the Fortune 500 are Delaware corporations.
Delaware is popular for a variety of reasons: It offers a solid body of written and case law, specialized courts for business, an efficient Division of Corporations, and the fact that most prominent companies already are formed there.
Because of the above, many international business entities assume Delaware is the best state to incorporate.
Is Delaware the best choice for you too? Provably No. Our usual answer is that you should incorporate in a state where you conduct your business. For the best answer and detail explanation, we need to know your business plan.
Accounting Outsourcing Services
How does outsourcing affect your employees?
We work with our clients to determine which method of outsourcing is best for them. We believe that communication with our clients is the most important factor in ensuring a smooth transition of operations, and we are always ready to answer any questions they may have. We believe that smooth communication is the most important factor in deepening client trust and ensuring a smooth transition.
Where will the outsourced work be performed?
Either in your office or in ours, depending on your preference. We will analyze your needs and provide prompt, quality service in the most appropriate manner to your satisfaction.
What are the benefits of using POSI instead of hiring additional employees?
Even if your labor costs for additional employees are similar to our costs, using a specialized accounting firm gives you access to comprehensive expertise and information that would be difficult to obtain in-house, and you will receive accurate and consistent service with a broad range of human resources. Our staff is able to fully utilize our internal resources to meet the needs of our clients. Whether you require our services on an ongoing basis or for a short-term special project, we invite you to take advantage of our outsourcing services.
What kind of POSI staff will work with you?
Our bilingual Japanese-English staff can provide services in either Japanese or English, depending on your needs. Some of our staff members are U.S. Certified Public Accountants (CPAs) or have worked for accounting firms, and their highly specialized skills enable them to provide support in compliance with U.S. accounting laws.
What kind of software do you use for your accounting system?
Basically, we will use your accounting system as is. If you do not have an accounting software, we can help you set up and operate QuickBooks or Sage accounting software. We recommend the cloud version of these accounting software packages for security reasons. The cloud version can be accessed from multiple sources in the US and Japan.
Is it possible to outsource only a portion of the accounting functions?
Yes, it is possible to outsource a portion of the accounting functions such as accounts receivable and payable, bookkeeping, and monthly closing. Some of our clients outsource only the payment functions due to the large amount of payments they receive each month, while others outsource only the monthly and quarterly closing functions while their internal staff handles the day-to-day accounting.
Payroll Processing Outsourcing Services
I am currently using ADP and am interested in POSI's services, is there any cost for support in Japanese?
We use our own program for our payroll processing services. You can use our program online, just like ADP, PAYCHEX, and other US companies that offer similar services. By using this program, you will not have to pay more for customer service in Japanese than other companies that do not offer Japanese-language services.
Can you calculate the gross-up of expatriate salaries?
More than 90% of our clients are Japanese companies. In addition to calculating the gross-up of expatriate salaries from Japan, we also perform year-end adjustments for gross-up calculations and prepare expatriates’ individual tax returns.
We have offices in multiple states and employees. We would like to use a time card system because we have an increasing number of employees who need to be calculated for overtime, can POSI provide this service?
We have a Time Labor Management system (a type of time card system) and many of our clients are already using it. Daily attendance records can be entered using time card devices (contact and non-contact) or by accessing our website and entering your hours. The system can be viewed and edited online, allowing for centralized management and improved efficiency even if you have offices in multiple states. The system also allows you to apply for and manage your paid time off online.
Tax & CPA Services
Is it possible to outsource auditing services?
Although we function as a CPA firm, we do not perform independent accounting audits that provide audit certification. We are not an organization that provides audits, as we stand on the client’s side and focus on day-to-day accounting/accounting operations, monthly closing, consulting, etc. We are not an auditing organization. We can provide support services for audits conducted by other auditing firms.
Have more questions about our service?
If you have questions that you can’t find, please use our contact us page.