Doing business in Latin America requires a commitment to relationships, not just an understanding of numbers and operational principles. In Central America and South America, success in business is often strongly connected to who you know and how much they trust you.
American products and services remain popular in Latin America, but some American companies make the mistake of being overly formal or too confident; they may see their Latin counterparts as “Third World” and in the process lose valuable opportunities; they may also misunderstand the tax phenomena that can inform approaches to a transaction.
Utilizing Joint Ventures
Oftentimes, companies don’t know how to structure their business opportunities in a foreign country. Do you create a foreign company, and if so, what type of company? What are the tax, accounting and legal ramifications of doing that? Sometimes a joint venture is a creative solution for such opportunities. But joint ventures can present some unique challenges.
Before engaging in business in any foreign country, make sure you have a plan and understand the tax, accounting and legal issues of pursuing business opportunities outside the U.S.
Building Relationships, Navigating Bureaucracy, Avoiding Tax Pitfalls
The attorneys of Janathan L. Allen, APC and the business consultants of Allen Barron advise American and European companies regarding their ventures in Mexico, Central America, South America and the Spanish-speaking Caribbean. We can help you and your associates:
- Appreciate and navigate key cultural differences that can make or break everything
- Understand and manage the bureaucracy that accompanies entity formation in Mexico and elsewhere in Latin America
- Gain pragmatic perspective on advantage related to personal and family connections
- Develop a thorough tax plan that will prevent problems down the road
- Consider how good accounting can improve your position
- Explore how can a joint venture assist you in establishing your foreign business opportunity
If you have questions about these issues, our firm can provide you with the guidance you need to capitalize on the possibilities that have been set before you.
Talk To Us
Janathan L. Allen, APC and Allen Barron are based in San Diego, California. Our lawyers and consultants are here to answer your questions. Contact us for a free consultation.