3 Ways a Global PEO Helps Expand Your Business in the US

Human resource outsourcing is an easy and compliant option for  expansion without setting up a local entity. 

NNRoad is your trusted partner for hiring employees and PEO solutions worldwide. Contact us today to learn how we can assist you. 

What is a PEO? 

A professional employer organization (PEO) is an organization that enters in a joint-employment relationship with an employer by leasing employees to the employerThis gives employers the capability to outsource their human resource functions, such as employee benefits and payroll. global PEO solution helps companies expand into markets around the world. Companies use human resource outsourcing to have more flexibility, stay compliant with local laws, and save money. Keep reading to learn three ways a Global PEO, such as NNRoad, can help expand your business in the US. 

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1. PEO Solutions Offer a Flexible International Expansion Strategy 

Employment solutions give companies the opportunity to test out the local market before they commit to setting up a new legal entity. By hiring an employee in the US, business owners can bridge the cultural gap between their company and the market in the US by utilizing the knowledge of their new team member.

The prior knowledge this employee has will help your company tailor your business efforts appropriately to cater to the culture and audience.  Partnering with a global PEO means that you have the benefit of managing your employee in the US directly under your authority, while the PEO solution covers hiring, payroll, contributions, and more even if you don’t have an entity. 

2. Human Resource Outsourcing and Compliance 

The legal business requirements in the US will differ to other countries, and businesses need PEO solutions that are compliant for when they enter into a new market. Some organizations may outsource freelance workers or independent contractors, however doing so can lead to legal risk. 

If a company is discovered to have mislabeled actual employees as independent contractors, they can be subject to financial penalties and other legal violations. This can also negatively affect the company’s global expansion efforts. With a global PEO, companies are able to meet local employment requirements making it an ideal option for businesses around the world without having to set up a local entity in each new market. 

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3. Cost-Effective for Small Businesses Without Setting Up a Local Entity

In December 2017, the US Congress passed and President Donald Trump signed the Tax Cuts and Jobs Act, which, among its various provisions, reduces the corporate income tax (CIT) rate from 35% to 21%. CIT rates in the USA can vary from state to state and it is something to be considered when expanding abroadUsing employment solutions is an affordable alternative to setting up a wholly owned entity that would be subject to tax and regulations. You don’t even have to worry about tax rates on entities in the US because your employee is hired through PEO solutions. 

A PEO offers “big company” benefits that allow smaller teams to grow, improve productivity and profitability, and to focus on their core mission. 

The US is known as the land of opportunity. Expanding your business into the American market can lead to endless possibilities. Let NNRoad help you take your business overseas and guide you through the global expansion process every step of the way. Contact us today!