The Pros and Cons of Investing in US Based 3PL Companies

There are many US based 3PL companies in the international arena today that are very successful. But there are also many more of them that do not measure up to expectations. Before we get into a discussion on what makes a good US company, it is important to understand first the difference between an international and a US company. For all intents and purposes, any company that operates internationally can be called a "3PL" or "non-provisional business entity."

The term "3PL" was coined by the United States Congress as a way to distinguish international corporations from US corporations. However, not all international corporations are subject to taxation under US tax law. Most of the foreign corporations that come to the US do so because they want to open up operations here in the US and due to certain benefits that they are provided with. An international corporation cannot be considered as a "domestic" business in the United States, and therefore US tax laws do not apply to them.

International business entities do not have to pay taxes on dividends or capital gains since these payments are not taxable in the US. They also do not have to pay corporate taxes on their own US-based stock ownership. However, if they do have shares in US stocks, the dividends paid out must still be reported to the IRS. It is also very important for international businesses to report all of their revenue internationally. This means that the company would need to track its profits around the world every year in order to ensure that they are not double taxation.

For  fulfillment , location is everything. Therefore, it is extremely important that they have a US office where they can conduct all of their business transactions. Even though they may not have a main facility in the US, they still need to register with the SEC or Securities and Exchange Commission in the US. This helps establish their identity in the eyes of the international financial community. This is important because US companies are seen as solid and dependable by most international investors.

The other reason that makes international business so attractive is that they are able to be listed in the pink sheets of the stock exchanges. In the pink sheets of the stock exchange, there are companies which are considered to be over the counter or OTC companies. These companies are not subject to the same filing and registration requirements as established and registered corporations. This allows them to be listed on the stock market without any restrictions whatsoever. For these reasons and many more, international corporations prefer to deal with US based 3PL companies.

Another plus for these businesses is that they are not restricted by the local political structure of the countries they are doing business with. In the case of a business in the US, politics plays a large part. Businesses based in the US might not want to do business with a company in India or China because doing business with one or two countries from the same country might have a negative effect on their entire venture. International businesses, however, are not affected by political concerns and their profits are unaffected by the local political structure in any way.

There are many benefits that we can get from investing in these international companies. There are no major restrictions on their capital amount. Capital funds can be obtained from bank loans and various forms of financial sources without any difficulty. Because of these factors, you will find that these companies tend to earn higher profit margins than their domestic counterparts. Many of the companies also operate with the help of several thousand dollars and above in credit.

Investing in international companies does have its disadvantages. For one, we cannot do direct investments in any of the companies listed. As we can see on TV, many investors invest in companies where the stock price has dropped. They then decide to liquidate the invested assets. Therefore, before we make an investment, it is important that we take the right decisions.