Hiring a local representative or agent in Los Angeles has become a common practice for many European and Asian production companies and media professionals. There are numerous practical, fiscal and legal advantages.

A local representative is able to conduct research faster and more efficiently and would be better equipped to handle financial and legal matters such as insurance, payments, contracts, shooting permits, releases and similar issues.

The eight to nine hour time difference between Europe and Los Angeles alone makes it difficult to communicate directly, since it means that the workday in Los Angeles begins after the workday in Europe has ended. As a result, a delay in processing communication is inevitable. In addition, it is more convenient for your business partners and clients if they can simply deal with your local representative instead of making cumbersome long distance calls and shipping every package overseas.

A local representative would also be able to easily arrange business meetings, which would be an immense advantage in an industry built on personal relationships and contacts.

Since you would still remain a foreign company based overseas, you may not be under US jurisdiction with regard to many laws. For instance, you do not have to apply for a local business licenses and zoning permits. You do not have to comply with OSHA regulations, Social Security laws and the Americans With Disabilities Act (ADA). You will not be charged for parking assessments and local bond measures.

As a foreign corporation, you do not have to file income tax returns and information returns with the city and county governments, the California State Franchise Tax Board and the Internal Revenue Service. (Please note that the US imposes taxes on worldwide income, although based on a double taxation treaty you may receive a deduction on taxes paid in your country of residence).

If you maintain interest bearing accounts or investment accounts in the U.S. but qualify as a foreign corporation or individual who does not spend more than 186 days per year in the US, you do not owe taxes on this income. You may purchase US securities and other investments tax free. (However, you might be required to declare this investment income in your country of residence).

There are restrictions and reporting requirements with regard to your own business travel expense deductions. However, all expenses you pay to your representative abroad is a tax deductible business expense for you or your company. This may reduce your tax burden and greatly simplify your bookkeeping and reporting requirements.

Currency fluctuations often cause big problems for international film productions because the production costs may rise or fall uncontrollably over the course of a project. Using a US intermediary, you can safeguard against this by using US-$ revenue to pay for expenses in dollars, and other currency revenue to pay for expenses outside of the US. In many cases, production work and liabilities can be shifted accordingly to take advantage of currency fluctuations, and there are savings in fees for currency conversion and transactions.

Of course, each situation is different, and we will be happy to discuss your need with you. Please click here to contact us.

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