A corporation may pursue multinational status in order to increase market share, reduce production costs through the acquisition of cheap labor, avoid trade barriers and reduce its tax liability. A multinational entity is a company that maintains its headquarters in one country, but operates assembly or production facilities in other nations.Continue Reading
A corporation that meets its domestic saturation point often establishes facilities or offices in foreign nations in order to penetrate a new market. Entering foreign markets provides the corporation with an entirely new market in which to sell its goods or services.
Establishing foreign markets allows a multinational corporation to penetrate a larger population of potential buyers. Multinational status also increases the corporation’s growth potential by eliminating geographical boundaries.
A corporation may seek multinational status to reduce costs and increase its global presence. American corporations often establish production or assembly facilities in developing nations where labor and land are significantly less expensive than in the United States. An American corporation may also opt for multinational status to take advantage of tax variations or to reduce its domestic tax liability and avoid trade barriers.
Multinational status is applied to any corporation that possesses offices, factories or processing plants in different nations. These corporations typically maintain a centralized headquarters to coordinate their global management initiatives. Nike, Intel, Coca Cola and Microsoft are examples of multinational companies.Learn more about Corporations
Some of the major disadvantages of multinational companies include the use of slave labor, may push local businesses out of the market, encourage too much expenditure on consumers, may pose a threat to the environment and may become a monopoly. These companies have the financial and resource power to achieve certain things within a short time which is why they also have these disadvantages.Full Answer >
Sole proprietorships and limited liability corporations are both small business structures, but LLCs offer legal and tax protections that sole proprietorships do not, including limited personal debt liability, increased access to capital and easy ownership transfer, according to LegalZoom. However, LLCs require more paperwork and are more expensive to form than sole proprietorships.Full Answer >
Users calculate their tax liability by entering filing status, income, adjustments and credits into the Jackson Hewitt online tax calculator, according to the instructions on the JacksonHewitt.com resource center. They can also calculate tax refunds if applicable after adding exemptions into the calculator.Full Answer >
The 2014 income tax tables published by the Internal Revenue Service show tax liability by taxable income and filing status, according to IRS Publication 17. For taxable incomes in excess of $100,000, the IRS includes information on computing tax but does not provide the amount of tax in a table.Full Answer >