3 MIN

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In-person services at the U.S. Embassy and U.S. Consulates in Brazil were suspended this Friday (October 2). Visa issuance has also been affected, and there is still no official timeline for the resumption of services. The United States temporarily suspended in-person consular services in Brazil on Friday, October 2, 2026, due to security concerns. The […]

/ By Marcos Ferreira

In-person services at the U.S. Embassy and U.S. Consulates in Brazil were suspended this Friday (October 2). Visa issuance has also been affected, and there is still no official timeline for the resumption of services.

The United States temporarily suspended in-person consular services in Brazil on Friday, October 2, 2026, due to security concerns.

The announcement was released Thursday night (October 1), but U.S. authorities did not disclose what specific threat prompted the decision. The U.S. Department of State stated that it is working with Brazilian authorities to address the security concerns.

The suspension covers the U.S. Embassy in Brasília and the Consulates in São Paulo, Rio de Janeiro, Porto Alegre, and Recife.

Visa Issuance Also Suspended

The interruption of in-person services also affects the issuance of U.S. visas in Brazil.

According to information released this Friday (October 2), there was still no timeline for the resumption of services. Individuals with appointments or interviews scheduled should follow the guidance provided through official channels and check for any changes to the appointment scheduling system.

At this time, the suspension should be understood as a temporary security-related measure. There has been no announcement canceling visa applications that are already in progress.

For those who are still preparing an application, steps that do not require in-person services may continue to be completed. However, applicants should monitor official updates before making new payments or changing appointments.

What Should You Do During the Suspension?

Anyone with an interview or other consular appointment scheduled for the coming days should:

  • Monitor the official appointment scheduling system;
  • Check the email address registered in the application;
  • Follow announcements from the U.S. Embassy and Consulates;
  • Wait for guidance regarding possible rescheduling;
  • Avoid appearing in person while services remain suspended.

U.S. citizens who require emergency consular assistance have also been advised not to visit diplomatic facilities until further notice and to use the channels indicated by the U.S. Mission in Brazil.

Image: Canva

When Will U.S. Services in Brazil Resume?

At this time, there is no official timeline for the resumption of in-person services.

The recommendation for Brazilians who depend on consular services, particularly for the issuance or renewal of U.S. visas, is to monitor official U.S. government channels directly.

The situation may be updated as authorities complete their security assessment.

What Businesses and Travelers Need to Know

The suspension is relevant not only to tourists, but also to professionals, business owners, investors, students, and Brazilian companies that depend on U.S. visas or other consular services.

Anyone planning to travel to the United States should consider potential changes to processing timelines and monitor official information before making decisions about new appointments.

Drummond Advisors will continue to monitor key updates related to the United States and their potential impact on Brazilians and companies with ties to the country.

Disclaimer: The information in this content reflects the situation available as of October 2, 2026, and may be updated by U.S. authorities at any time.

Written by Marcos Ferreira, Content Analyst at Drummond Advisors

7 MIN

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For foreign companies and entrepreneurs seeking to operate in the United States, a persuasive immigration case increasingly begins with a practical question: What measurable value will the U.S. operation create? Investment committed, customers secured, revenue generated, and jobs supported can make the answer tangible. That emphasis fits the administration’s broader approach to foreign economic relationships, […]

/ By Drummond Advisors

For foreign companies and entrepreneurs seeking to operate in the United States, a persuasive immigration case increasingly begins with a practical question: What measurable value will the U.S. operation create? Investment committed, customers secured, revenue generated, and jobs supported can make the answer tangible.

That emphasis fits the administration’s broader approach to foreign economic relationships, which prominently links foreign investment to American jobs and growth. It is an interpretive lens, however, rather than a new legal test for every visa category. The existing E-2 and L-1A rules remain the starting point.

E-2: Show both committed capital and a viable enterprise

The E-2 treaty investor visa requires a substantial investment in a real, operating U.S. enterprise that the investor will develop and direct. “Substantial” is assessed in relation to the cost ofestablishing or purchasing the business; there is no universal minimum dollar amount. The enterprise must also be more than marginal.

In practice, applicants should expect close attention to how much has actually been committed and what the money has accomplished. A large balance in a bank account tells less of a story than documented expenditures, an equipped operation, employees, customers, and a credible path to growth.

An acquisition of an existing business may offer a clearer evidentiary record: operating history, financial statements, customers, payroll, and a purchase price tied to an established enterprise. A new venture can qualify just as well under the law, but it may need stronger evidence to overcome the uncertainty inherent in a launch. Signed client agreements, paid engagements, early sales, purchase orders, and well-supported financial projections can help demonstrate viability. Acquisition is not an E-2 requirement or a formal consular preference; its practical advantage is that an operating business often comes with evidence a startup must build from scratch.

New-office L-1A: Show how an executive role will become real

The L-1A category allows a qualifying company to transfer a manager or executive to a related U.S. business. A new office may initially receive only a one-year approval. The petitioner must show that the U.S. operation will support a primarily managerial or executive position within that year. USCIS examines the proposed operation, its financial capacity, and the scope of the business—not merely the transferee’s title.

This makes the first-year staffing plan central to the case. Where the proposed executive will manage people, a credible plan should explain who will carry out sales, service delivery, administration, and other operational work; who will supervise whom; and when those hires will occur. For a business proposing several layers of management, an organizational chart is most persuasive when each position has a defined function, a realistic salary, and funding to support it. Evidence of relevant degrees and professional experience can strengthen the showing that proposed subordinates will perform genuinely professional or managerial work.

A multi-level hierarchy and university degrees for every subordinate are not universal L-1A requirements. USCIS also recognizes function managers, and the appropriate structure depends on the business. The underlying issue is whether the company can realistically free the transferee from primarily performing its day-to-day services within the first year.

The practical shift

For both categories, the strongest presentation connects the immigration request to evidence of an executable U.S. business. E-2 applicants should document capital at risk and market demand. New-office L-1A petitioners should document the resources, hiring sequence, and operating structure that will support executive or managerial work.

The message for foreign businesses is straightforward: a U.S. expansion plan is more convincing when its investment, customers, and jobs can be traced through records and realistic milestones. That has always mattered under the governing rules. In the present environment, it deserves particular attention from the beginning.

Image: Canva

U.S. Business Immigration Is Asking a More Concrete Question: What Will This Enterprise Build?

For foreign companies and entrepreneurs seeking to operate in the United States, a persuasive immigration case increasingly begins with a practical question: What measurable value will the U.S. operation create? Investment committed, customers secured, revenue generated, and jobs supported can make the answer tangible.

That emphasis fits the administration’s broader approach to foreign economic relationships, which prominently links foreign investment to American jobs and growth. It is an interpretive lens, however, rather than a new legal test for every visa category. The existing E-2 and L-1A rules remain the starting point.

E-2: Show both committed capital and a viable enterprise

The E-2 treaty investor visa requires a substantial investment in a real, operating U.S. enterprise that the investor will develop and direct. “Substantial” is assessed in relation to the cost of establishing or purchasing the business; there is no universal minimum dollar amount. The enterprise must also be more than marginal.

In practice, applicants should expect close attention to how much has actually been committed and what the money has accomplished. A large balance in a bank account tells less of a story than documented expenditures, an equipped operation, employees, customers, and a credible path to growth.

An acquisition of an existing business may offer a clearer evidentiary record: operating history, financial statements, customers, payroll, and a purchase price tied to an established enterprise. A new venture can qualify just as well under the law, but it may need stronger evidence to overcome the uncertainty inherent in a launch. Signed client agreements, paid engagements, early sales, purchase orders, and well-supported financial projections can help demonstrate viability. Acquisition is not an E-2 requirement or a formal consular preference; its practical advantage is that an operating business often comes with evidence a startup must build from scratch.

New-office L-1A: Show how an executive role will become real

The L-1A category allows a qualifying company to transfer a manager or executive to a related U.S. business. A new office may initially receive only a one-year approval. The petitioner must show that the U.S. operation will support a primarily managerial or executive position within that year. USCIS examines the proposed operation, its financial capacity, and the scope of the business—not merely the transferee’s title.

This makes the first-year staffing plan central to the case. Where the proposed executive will manage people, a credible plan should explain who will carry out sales, service delivery, administration, and other operational work; who will supervise whom; and when those hires will occur. For a business proposing several layers of management, an organizational chart is most persuasive when each position has a defined function, a realistic salary, and funding to support it. Evidence of relevant degrees and professional experience can strengthen the showing that proposed subordinates will perform genuinely professional or managerial work.

A multi-level hierarchy and university degrees for every subordinate are not universal L-1A requirements. USCIS also recognizes function managers, and the appropriate structure depends on the business. The underlying issue is whether the company can realistically free the transferee from primarily performing its day-to-day services within the first year.

The practical shift

For both categories, the strongest presentation connects the immigration request to evidence of an executable U.S. business. E-2 applicants should document capital at risk and market demand. New-office L-1A petitioners should document the resources, hiring sequence, and operating structure that will support executive or managerial work.

The message for foreign businesses is straightforward: a U.S. expansion plan is more convincing when its investment, customers, and jobs can be traced through records and realistic milestones. That has always mattered under the governing rules. In the present environment, it deserves particular attention from the beginning.


Written by Chris Costa, Senior Immigration Lawyer at Drummond Advisors

13 MIN

READ

Is SaaS subject to Sales Tax in the United States? The answer depends on the state, the type of software, the customer’s profile, and whether the company has established nexus. In 2026, technology companies need to monitor not only current rules but also changes already approved for 2027, particularly in California and Colorado. For a […]

/ By Marcos Ferreira

Is SaaS subject to Sales Tax in the United States? The answer depends on the state, the type of software, the customer’s profile, and whether the company has established nexus.

In 2026, technology companies need to monitor not only current rules but also changes already approved for 2027, particularly in California and Colorado.

For a foreign company selling subscription-based software to customers in the United States, the question is not simply, “Do I need to pay Sales Tax?”

The proper analysis involves at least four questions:

  1. Is the SaaS taxable in the customer’s state?
  2. Does the company have Sales Tax nexus in that state?
  3. What rules apply based on the product, the customer, and how the software is delivered?
  4. Is the company properly registered, collecting, filing, and remitting the tax?

Since the U.S. Supreme Court’s decision in South Dakota v. Wayfair in 2018, a company can establish economic nexus in a state even without an office, employees, or another form of physical presence there.

For SaaS companies, this is particularly relevant. A business may be headquartered in another country, have a small team in the United States, and still reach enough customers across multiple states to trigger Sales Tax obligations.

In 2026, the landscape is also changing rapidly. California and Colorado have already approved changes that will expand the taxation of software and SaaS beginning January 1, 2027.

What Is SaaS Sales Tax?

SaaS, or Software as a Service, is a model in which customers access software hosted by the provider, typically through a monthly or annual subscription.

Unlike traditional software installed locally on a customer’s device, the customer generally does not receive possession of a physical copy of the software.

Examples of SaaS include:

  • CRM platforms
  • Enterprise management systems
  • Marketing tools
  • Human resources platforms
  • Accounting software
  • Data analytics tools
  • Customer service platforms
  • Security software
  • Collaboration systems
  • Artificial intelligence tools

The tax issue arises because U.S. states do not have a uniform definition or tax treatment for these products.

One state may treat SaaS as a taxable service. Another may consider it nontaxable. A third may apply different rules depending on whether the software is used for business or personal purposes.

Therefore, there is no single federal Sales Tax rule for SaaS in the United States.

Why Is SaaS Sales Tax So Complex in the U.S.?

The United States does not have a national Sales Tax system equivalent to a federal VAT.

Consumption taxes are primarily imposed at the state and local levels.

This means a company may need to deal with:

  • State rules
  • Municipal rules
  • Counties
  • Special taxing districts
  • Different definitions of SaaS
  • Sourcing rules
  • Economic nexus
  • Physical nexus
  • Exemption certificates
  • Filing frequency
  • Specific B2B and B2C rules

In addition, tax rates can vary significantly depending on the customer’s location.

The Tax Foundation estimates that 45 states have a statewide Sales Tax and 38 allow local Sales Taxes, illustrating why the final tax rate depends on the specific jurisdiction.

Therefore, a company should not simply use the “state tax rate” to determine how much Sales Tax to charge a customer.

Is SaaS Taxable in Every State?

No.

The taxability of SaaS varies significantly from state to state.

Based on surveys and guidance updated for 2026, some states generally tax SaaS, some generally do not, and others apply conditional rules based on the type of customer, product, or method of delivery.

The table below provides a general overview for 2026.

Important: This table is intended as an initial reference. The tax treatment of a specific product should be analyzed based on the laws and guidance currently in effect in the applicable jurisdiction. Sales Tax rules can change, and certain local jurisdictions may have their own requirements.

SaaS Sales Tax: State-by-State Overview for 2026

JurisdictionSaaS in 2026Key Consideration
AlabamaTaxableSoftware is generally taxable.
AlaskaDepends on the localityAlaska has no general statewide Sales Tax, but many local jurisdictions impose sales taxes.
ArizonaTaxableSaaS may be subject to Transaction Privilege Tax.
ArkansasGenerally nontaxableTreatment depends on the nature of the transaction and product.
CaliforniaNontaxable through 12/31/2026Beginning 01/01/2027, SaaS and prewritten software will fall within the scope of Sales and Use Tax under SB 122.
ColoradoGenerally nontaxable in 2026Legislation enacted in 2026 expands software taxation beginning 01/01/2027.
ConnecticutTaxableSaaS used for business purposes may be subject to a reduced rate or different treatment.
DelawareNo statewide Sales TaxDelaware does not have a general Sales Tax.
District of ColumbiaTaxableSaaS is subject to local tax rules.
FloridaGenerally nontaxableHosted SaaS is generally not subject to Florida’s statewide Sales Tax.
GeorgiaGenerally nontaxableSaaS is generally not treated as a taxable service.
HawaiiTaxableThe General Excise Tax broadly applies to business activities.
IdahoGenerally nontaxableHosted SaaS is generally not taxed.
IllinoisGenerally nontaxable at the state levelCertain local jurisdictions may have different rules.
IndianaGenerally nontaxableTreatment depends on the nature of the transaction.
IowaConditionalTreatment may vary depending on whether the software is used for business or personal purposes.
KansasGenerally nontaxableSaaS is generally not treated as a taxable service.
KentuckyTaxableSoftware and related services may be subject to tax.
LouisianaTaxableSaaS may be subject to state and local Sales Tax.
MaineGenerally nontaxableSaaS is generally not taxed.
MarylandTaxableTreatment may vary between business and personal use.
MassachusettsTaxableSaaS and related software services may be subject to tax.
MichiganGenerally nontaxableTax may apply when there is a downloadable software component.
MinnesotaGenerally nontaxableHosted SaaS is generally not subject to Sales Tax.
MississippiTaxableThe Department of Revenue considers revenue from software and related services taxable.
MissouriGenerally nontaxableTreatment depends on the specific nature of the transaction.
MontanaNo general statewide Sales TaxMontana does not have a general statewide Sales Tax.
NebraskaGenerally nontaxableCertain related products or services may receive different treatment.
NevadaGenerally nontaxableHosted SaaS is generally not taxed.
New HampshireNo general statewide Sales TaxNew Hampshire does not have a general statewide Sales Tax.
New JerseyGenerally nontaxableHosted SaaS is generally not taxed.
New MexicoTaxableThe transaction may be subject to Gross Receipts Tax.
New YorkTaxableSaaS is generally treated as a taxable service subject to Sales Tax.
North CarolinaGenerally nontaxableSaaS is generally not included among taxable services.
North DakotaGenerally nontaxableHosted SaaS is generally not taxed.
OhioConditionalTreatment may vary depending on whether the software is used for business or personal purposes.
OklahomaGenerally nontaxableSaaS is generally not taxed as a service.
OregonNo general statewide Sales TaxOregon does not have a general statewide Sales Tax.
PennsylvaniaTaxableSaaS is generally subject to Sales Tax.
Rhode IslandTaxableThe tax authority confirms taxation of SaaS, IaaS, and PaaS in certain circumstances.
South CarolinaTaxableSaaS may be subject to Sales Tax.
South DakotaTaxableSaaS is subject to applicable state tax rules.
TennesseeTaxableSaaS is generally taxable.
TexasTaxableSaaS is treated as a data processing service, with 80% of the charge subject to tax and 20% exempt.
UtahTaxablePrewritten software, including hosted software, is taxable.
VermontTaxableSaaS is generally subject to Sales Tax.
VirginiaGenerally nontaxableSaaS is generally not taxed.
WashingtonTaxableSaaS is treated as a digital automated service and is subject to state tax rules.
West VirginiaTaxableSaaS is generally taxable.
WisconsinGenerally nontaxableHosted SaaS is generally not subject to Sales Tax.
WyomingGenerally nontaxableHosted SaaS is generally not taxed.
Puerto RicoTaxableThe jurisdiction has its own Sales and Use Tax rules.

The matrix above primarily uses TaxJar’s 2026 SaaS taxability survey, supplemented by official state sources and 2026 legislative updates.

Image: Canva

Can a Foreign Company Have Sales Tax Nexus in the U.S.?

Yes.

This is one of the most important considerations for Brazilian companies expanding into the U.S. market.

Imagine a software company headquartered outside the United States that sells a $100-per-month subscription to hundreds of customers in the U.S.

The company has no U.S. office but has customers in:

  • Texas
  • New York
  • Florida
  • California
  • Washington

If sales exceed the applicable economic nexus thresholds, the company may need to:

  1. Register for Sales Tax
  2. Obtain a permit
  3. Set up tax collection
  4. File Sales Tax returns
  5. Remit the tax to the states
  6. Maintain compliance documentation

This can happen even if the company does not form an LLC or hire employees in the United States.

This is one of the reasons tax planning should keep pace with a company’s commercial growth.

What If the Customer Is a Business?

The fact that a sale is B2B does not automatically mean it is exempt from Sales Tax.

This is another particularly important consideration for SaaS companies.

Some states have specific rules for business use, while others tax SaaS regardless of whether the customer is an individual or a business.

In Texas, for example, SaaS is treated as a data processing service, and the law provides a 20% exemption for the charge for this service, making 80% taxable.

Connecticut and Maryland also have specific rules related to business use.

Therefore, a SaaS company needs to analyze not only who purchased the software, but also how the software will be used.

How Is Sales Tax Calculated?

Even when SaaS is taxable, another question remains:

What tax rate applies?

In the United States, the rate may consist of:

  • State Sales Tax
  • County tax
  • City tax
  • Special district tax

The Tax Foundation shows that combined rates can vary significantly between jurisdictions.

Therefore, a company selling SaaS to customers in different cities should not simply apply one tax rate across the entire state.

Simplified Example

A company has customers in:

  • Austin, Texas
  • Houston, Texas
  • Dallas, Texas

Although all three customers are located in the same state, the final applicable rate may vary depending on the specific location and sourcing rules.

The billing system needs to correctly identify the buyer’s jurisdiction and apply the corresponding tax rules.

What Are the Main Risks of Noncompliance?

A company that should have collected Sales Tax but failed to do so may face:

  • Retroactive tax assessments
  • Interest
  • Penalties
  • Audits
  • Defense costs
  • The need to correct prior periods
  • Due diligence issues
  • Impact on M&A transactions
  • Difficulties during fundraising

There is also a commercial issue.

If a company discovers that it should have been collecting Sales Tax for years, it may have to decide between:

absorbing the tax or trying to pass it on to the customer.

For a SaaS company with long-term contracts, this difference can have a significant impact on margins and cash flow.

What Should a SaaS Company Do Before Entering the U.S. Market?

For Brazilian and other foreign companies planning to sell SaaS in the U.S., a proactive approach can include the following steps:

1. Map Your Customer Locations

Create a reliable database containing customer locations and sales volume by state.

2. Determine the Taxability of the Product

Analyze exactly what is being sold.

SaaS, downloadable software, PaaS, IaaS, support, and consulting may receive different tax treatment.

3. Evaluate Physical Nexus

Review employees, offices, representatives, inventory, and other forms of physical presence.

4. Evaluate Economic Nexus

Compare sales against each state’s economic nexus thresholds.

5. Review B2B Rules

Do not assume that business customers are automatically exempt.

6. Review Contracts and Invoices

Determine whether software and services are properly segregated.

7. Register When Required

Once a tax obligation is identified, the company should evaluate Sales Tax registration before beginning to collect the tax.

8. Configure Billing

The system needs to correctly determine:

  • Customer location
  • Taxability
  • Tax rate
  • Exemption status
  • Tax amount

9. Establish a Compliance Process

Registration is not the end of the process.

The company must continue monitoring:

  • Filing frequency
  • Returns
  • Payments
  • Legislative changes
  • New states where the company establishes nexus

10. Monitor Future Changes

For 2027, California and Colorado should already be on the radar of any SaaS company selling to customers in those states.

Conclusion

SaaS Sales Tax in the United States is far from uniform.

In 2026, some jurisdictions directly tax SaaS, others do not, and some apply conditional rules based on the type of customer, product, or method of delivery.

At the same time, the landscape is evolving rapidly.

California will begin taxing certain software and SaaS products on January 1, 2027, while Colorado will also expand software taxation beginning on the same date.

Washington has already expanded its taxation of certain digital services, demonstrating a broader trend among states seeking to adapt their tax systems to the digital economy.

For international SaaS companies, the primary risk is not simply failing to identify the correct tax rate.

The challenge is determining when the company has established nexus, whether the product is taxable, where the sale should be taxed, and how to comply with registration, collection, filing, and remittance requirements.

Therefore, an effective U.S. expansion strategy should consider Sales Tax from the beginning, particularly when the company operates under a recurring revenue model and serves customers across multiple states.

How Can Drummond Advisors Help?

Expanding a technology company into the United States involves tax, accounting, and structural decisions that need to keep pace with the business as it grows.

Drummond Advisors helps international companies enter and operate in the U.S., including accounting, taxation, business structuring, and compliance services.

For a SaaS company, this means evaluating not only its corporate structure but also the tax obligations that may arise as the business acquires customers across different states.

Want to understand how Sales Tax rules may affect your company in the United States? Contact Drummond Advisors through the available chat or by email at info@drummondadvisors.com and speak with our specialists.


Written by Marcos Ferreira, Content Analyst at Drummond Advisors


Sources

  • TaxJar: SaaS Sales Tax by State
  • TaxJar: Economic Nexus by State
  • Tax Foundation: State and Local Sales Tax Rates 2026
  • Tax Foundation: 2026 State Tax Competitiveness Index
  • Streamlined Sales Tax: Remote Seller FAQs
  • Texas Comptroller: Taxable Services and Data Processing
  • California CDTFA: Software and Sales Tax Rules
  • PwC: California SB 122 and SaaS Taxation Beginning in 2027
  • Colorado General Assembly: HB26-1223
  • Washington Department of Revenue: Services Subject to Sales Tax
  • Washington Department of Revenue: Digital Products and SaaS
  • Mississippi Department of Revenue: Software and Software Services
  • Rhode Island Division of Taxation: SaaS, PaaS, and IaaS Ruling
  • Utah State Tax Commission: Computer Service Providers

9 MIN

READ

FinCEN has made permanent the exemption for companies formed in the United States from the requirement to report beneficial ownership information. However, foreign companies registered to do business in the U.S. remain subject to specific BOI rules. Understand what changed and what it means for international businesses.  Introduction: An Important Change to U.S. Corporate Transparency Rules  Companies doing business in the United States have experienced a series of changes to Beneficial Ownership Information (BOI) reporting requirements since the Corporate Transparency Act (CTA) took effect.  Now, the landscape has changed again.  On August 11, 2026, the Financial Crimes Enforcement Network (FinCEN), an agency of the U.S. Department of the Treasury, published a final rule permanently exempting companies formed in the United States from federal beneficial ownership information reporting requirements.  The rule became effective on August 14, 2026.  In practice, this means that an LLC, corporation, or other entity formed under the laws of a U.S. state no longer needs to file a BOI Report with FinCEN solely because it was formed in the United States.  But there is a fundamental distinction for international companies:  This exemption does not mean that all foreign companies doing business in the United States are free from BOI reporting requirements.  Certain entities formed outside the United States and registered to do business in a U.S. state may continue to qualify as reporting companies and may have obligations to FinCEN.  This distinction is particularly relevant for multinational companies, international founders, foreign holding companies, and businesses structuring their entry into the U.S. market.  What Is a BOI Report?  The Beneficial Ownership Information Report, commonly known as a BOI Report, was created under the Corporate Transparency Act to increase transparency regarding the ownership and control of certain business entities.  The original objective was to allow FinCEN to access information about individuals who:  The initiative was part of a broader U.S. government strategy to combat business structures used for money laundering, fraud, illicit financing, and other criminal activities.  Since its implementation, however, the system has undergone regulatory changes, legal challenges, and significant changes to the scope of entities required to report.  The final rule published in […]

/ By Marcos Ferreira

FinCEN has made permanent the exemption for companies formed in the United States from the requirement to report beneficial ownership information. However, foreign companies registered to do business in the U.S. remain subject to specific BOI rules. Understand what changed and what it means for international businesses. 

Introduction: An Important Change to U.S. Corporate Transparency Rules 

Companies doing business in the United States have experienced a series of changes to Beneficial Ownership Information (BOI) reporting requirements since the Corporate Transparency Act (CTA) took effect. 

Now, the landscape has changed again. 

On August 11, 2026, the Financial Crimes Enforcement Network (FinCEN), an agency of the U.S. Department of the Treasury, published a final rule permanently exempting companies formed in the United States from federal beneficial ownership information reporting requirements. 

The rule became effective on August 14, 2026. 

In practice, this means that an LLC, corporation, or other entity formed under the laws of a U.S. state no longer needs to file a BOI Report with FinCEN solely because it was formed in the United States. 

But there is a fundamental distinction for international companies: 

This exemption does not mean that all foreign companies doing business in the United States are free from BOI reporting requirements. 

Certain entities formed outside the United States and registered to do business in a U.S. state may continue to qualify as reporting companies and may have obligations to FinCEN. 

This distinction is particularly relevant for multinational companies, international founders, foreign holding companies, and businesses structuring their entry into the U.S. market. 

What Is a BOI Report? 

The Beneficial Ownership Information Report, commonly known as a BOI Report, was created under the Corporate Transparency Act to increase transparency regarding the ownership and control of certain business entities. 

The original objective was to allow FinCEN to access information about individuals who: 

  • own a significant interest in a company; 
  • exercise substantial control over the entity; or 
  • in certain circumstances, participated in forming or registering the company as company applicants. 

The initiative was part of a broader U.S. government strategy to combat business structures used for money laundering, fraud, illicit financing, and other criminal activities. 

Since its implementation, however, the system has undergone regulatory changes, legal challenges, and significant changes to the scope of entities required to report. 

The final rule published in August 2026 consolidates one of those changes. 

What Changed With FinCEN’s 2026 Final Rule? 

The main change is straightforward: 

U.S. companies are exempt from BOI reporting 

FinCEN confirmed that U.S. companies no longer need to file BOI Reports. 

This includes entities formed in the United States, including business structures that were previously classified as domestic reporting companies. 

As a result, the owners of these companies also do not need to provide their personal information to FinCEN for this purpose. 

The final rule made permanent the exception that FinCEN had provisionally introduced in March 2025. 

What About Companies That Previously Filed a BOI Report? 

FinCEN also announced that it intends to remove from its system information previously submitted by domestic companies and U.S. individuals who are now outside the scope of the reporting requirement. 

The agency stated that it intends to carry out this deletion process in a single operation and does not expect companies or individuals to need to request the removal of their information individually. 

FinCEN also stated that it will publicly announce when the deletion process has been completed. 

Therefore, a U.S. company that filed a BOI Report in the past should not assume that it needs to file a new report or manually request the removal of its information. 

Foreign Companies Remain Subject to BOI Rules 

This is where the change becomes particularly important for international businesses. 

The final rule did not eliminate BOI reporting for all companies that have operations in the United States. 

The current definition of reporting company focuses the requirement on certain entities formed under the laws of a foreign country that have registered to do business in a U.S. state or tribal jurisdiction through a filing with the Secretary of State or a similar office. 

In other words: 

Being a foreign company registered to do business in the United States is different from being a company formed in the United States. 

This distinction needs to be considered when planning an international expansion. 

A Practical Example 

Imagine a company formed in Brazil that decides to expand its operations into the United States. 

It may pursue different structures. 

Structure 1: Forming a New U.S. LLC 

The Brazilian company forms an LLC in Delaware, Florida, Texas, or another state. 

In this case, the entity is a U.S. company and, under the current rule, is exempt from federal BOI reporting. 

Structure 2: Registering the Foreign Company Directly in the U.S. 

The Brazilian company maintains its Brazilian entity and registers that same company to do business in a particular U.S. state. 

In this scenario, it may qualify as a foreign reporting company and remain subject to BOI rules, provided no other exemption applies. 

The choice between these structures is therefore not simply a legal or operational decision. It can also change the compliance obligations applicable to the business. 

What Information Do Foreign Companies Need to Report? 

Another relevant change concerns U.S. individuals. 

Under the final rule, a reporting company does not need to report information about U.S. persons who are beneficial owners or company applicants. Likewise, U.S. persons are exempt from providing their information to a reporting company in these circumstances. 

This means that, for a foreign company that remains within the scope of BOI reporting, the analysis should focus on the individuals who remain subject to reporting. 

Example 

A foreign company has: 

  • a Brazilian founder; 
  • a U.S. shareholder; 
  • a U.S. director; 
  • foreign investors. 

If the company qualifies as a reporting company, the current rule provides that information about U.S. persons should not be reported as BOI. 

On the other hand, individuals who are not U.S. persons and who meet the applicable definition of a beneficial owner may remain subject to reporting. 

Therefore, it is not enough to identify the nationality of the shareholders. Companies must simultaneously analyze: 

  1. where the entity was formed; 
  1. how it is registered in the United States; 
  1. whether an exemption applies; 
  1. who its beneficial owners are; 
  1. who exercises substantial control; 
  1. which individuals are U.S. persons; and 
  1. what information actually needs to be reported. 
Image: Canva

What Is the Deadline for Foreign Companies That Need to File BOI? 

    The final rule maintained the reporting deadlines previously established by FinCEN for foreign entities that remain within the definition of reporting company. 

    For a foreign entity that becomes a reporting company after March 26, 2025, the deadline for filing the initial report is generally 30 days from the date the entity receives actual notice that it has been registered to do business in the United States, or the date the relevant state authority first makes that information publicly available, whichever occurs first. 

    The final rule expressly maintained this 30-day deadline. 

    Therefore, foreign companies should not interpret the 2026 change as a general elimination of BOI reporting. 

    BOI Is Not the Only Compliance Requirement for a U.S. Company 

    This is one of the most important points for international companies to understand. 

    Eliminating BOI reporting for U.S. companies does not mean these companies no longer have regulatory or corporate compliance obligations. 

    A company formed in the United States may still need to address: 

    • obtaining and maintaining an EIN; 
    • federal tax filings; 
    • state tax obligations; 
    • franchise taxes; 
    • state annual reports; 
    • sales tax registrations; 
    • payroll compliance; 
    • employment requirements; 
    • business licenses; 
    • maintaining a registered agent; 
    • accounting and bookkeeping; 
    • obligations related to foreign investments; 
    • FBAR and other applicable international reporting requirements for individuals or entities; 
    • state-specific rules. 

    In other words, BOI is only one component of corporate compliance in the United States. 

    The change eliminates one specific federal requirement, but it does not replace the need for an integrated compliance structure. 

    What Does the Change Mean for Founders and Companies Entering the U.S.? 

    For international entrepreneurs, the new regulation may influence the analysis of their corporate structure. 

    A foreign founder evaluating entry into the United States may consider, for example: 

    Forming a New U.S. Entity 

    Under this model, a foreign company or its founders form a new U.S. entity. 

    Because the new entity is a U.S. company, it is currently outside the scope of federal BOI reporting. 

    Registering the Foreign Entity in the U.S. 

    Another option is to use the existing foreign company and register it to do business in a particular state. 

    In this case, the entity may remain subject to BOI reporting if it meets the requirements for a reporting company. 

    However, the decision should not be based solely on BOI requirements. 

    Tax considerations, governance, legal liability, intellectual property, investment, profit distributions, cross-border fund transfers, and state-level requirements must also be considered. 

    Conclusion: Less Bureaucracy, But Not Less Responsibility 

    FinCEN’s decision represents a significant change to the U.S. corporate regulatory environment. 

    As of August 14, 2026, companies formed in the United States are permanently exempt from filing BOI Reports with FinCEN, and U.S. persons are also exempt from providing their information for this purpose. 

    At the same time, certain foreign companies registered to do business in the United States remain subject to BOI reporting, particularly when they have beneficial owners who are not U.S. persons. 

    For international companies, therefore, the question is no longer simply: 

    “Does my company need to file a BOI Report?” 

    The correct analysis is broader: 

    “What is the legal structure of my U.S. operation, which obligations apply to that structure, and how can I keep my business compliant at the federal, state, and international levels?” 

    This assessment is particularly important for companies planning to enter the U.S. market, restructuring existing operations, or evaluating a U.S. holding company structure. 

    The FinCEN change may reduce costs and bureaucracy for millions of American companies. For international businesses, however, the key benefit lies in properly understanding the new regulatory environment and incorporating it into the corporate, tax, and compliance planning for their U.S. expansion. 

    How Can Drummond Advisors Help? 

    Expanding into the United States involves much more than forming a company. Corporate structure, accounting, taxation, compliance, and regulatory obligations need to be analyzed together. 

    Drummond Advisors supports international companies throughout their U.S. market entry and operations, providing assistance in areas such as accounting, taxation, business structuring, compliance, and outsourcing. 

    Want to understand which structure makes the most sense for your company? Contact Drummond Advisors and speak with our specialists. 

    Written by Marcos Ferreira, Content Analyst at Drummond Advisors 

    Official Sources 

    • FinCEN, Beneficial Ownership Information Reporting. 
    • FinCEN, Final Rule: Beneficial Ownership Information Reporting Requirement Revision, published August 14, 2026. 
    • FinCEN, Permanently Ends Beneficial Ownership Reporting Requirements for Millions of Small Business Owners, August 11, 2026. 
    • FinCEN, Beneficial Ownership Information Frequently Asked Questions. 
    • FinCEN, Reference Materials. 

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    For a Brazilian company opening its first U.S. office, hiring American employees can feel deceptively simple compared to Brazil’s heavily codified labor system (CLT).   There’s no equivalent of the carteira de trabalho, no single federal labor code governing every aspect of employment, and no 13º salário or mandatory FGTS deposits.   But this apparent simplicity is misleading. U.S. employment law is fragmented, inconsistent across states, and largely built on unwritten […]

    / By Drummond Advisors

    For a Brazilian company opening its first U.S. office, hiring American employees can feel deceptively simple compared to Brazil’s heavily codified labor system (CLT).  

    There’s no equivalent of the carteira de trabalho, no single federal labor code governing every aspect of employment, and no 13º salário or mandatory FGTS deposits.  

    But this apparent simplicity is misleading. U.S. employment law is fragmented, inconsistent across states, and largely built on unwritten expectations rather than a single statute.  

    An employee handbook is the tool that fills that gap and increases the employment relationships in US. 

    The U.S. Has No CLT — And That’s the Risk, Not a Relief 

    In Brazil, much of what protects both employer and employee is already written into national law. In the U.S., there is no single federal labor code. Employment law is a patchwork of: 

    • Federal law (wage and hour rules under the FLSA, anti-discrimination law under Title VII, family/medical leave under the FMLA) 
    • State law, which varies enormously — California, New York, and Texas each have different rules on overtime, meal breaks, paid sick leave, and termination 
    • Local ordinances, since some cities impose their own minimum wage or scheduling laws on top of state and federal rules 

    Nothing tells a new employee — or a new employer — what the rules are unless someone writes it down. The handbook becomes the private substitute for the public code that doesn’t exist. Without one, a Brazilian parent company has no reliable way to make sure its U.S. subsidiary is operating within U.S. law, since there is no default rulebook to fall back on. 

    “Employment at Will” Is Unfamiliar — and Needs to Be Explained Carefully 

    One of the biggest conceptual differences from Brazilian labor law is employment at will. In most U.S. states, either the employer or the employee can end the employment relationship at any time, for almost any reason (or no reason), without notice or severance — a stark contrast to CLT’s aviso prévio, severance obligations, and just-cause requirements for termination. 

    This doesn’t mean a U.S. employer can do whatever it wants, however.  

    At-will employment has major exceptions: employers cannot fire someone for a discriminatory reason, in retaliation for a complaint, or in violation of a contract. 

    A handbook is where a company formally states it’s at-will policy and documents the legal boundaries around it — which protects the company from being accused of acting arbitrarily or unlawfully, while making the flexibility of the U.S. system clear to a Brazilian management team used to more rigid rules. 

    Image: Canva

    U.S. Employment Disputes Are Driven by Documentation 

    Brazilian labor courts (Justiça do Trabalho) tend to rely on statute and established precedent to resolve disputes. In the U.S., outcomes are heavily driven by what a company can prove it told employees and how consistently it enforced its own rules. In a wrongful termination claim, a discrimination complaint, or a wage dispute, the first thing an agency or opposing attorney typically requests is the employee handbook and the signed acknowledgment that the employee received it. 

    A foreign parent company without a handbook — or with one copy-pasted from its Brazilian policies — is often unable to show it applied consistent, compliant policies.  

    That gap is exactly what create risks for the Company. 

    It Prevents Costly Missteps From Assuming Brazilian Practices Apply 

    Many Brazilian companies unintentionally import CLT-style assumptions into their U.S. operations — for example, assuming a “trial period” works the same way, or that severance/notice periods are legally required, or that a 40-hour week automatically qualifies an employee for the same overtime protections as in Brazil.  

    U.S. wage-and-hour law (overtime eligibility, exempt vs. non-exempt classification, meal-and-rest-break rules) works entirely differently and varies by state.  

    A handbook forces the company to research and create policies that reflect U.S. — and the specific state’s — requirements, rather than defaulting to what feels familiar. 

    It Builds Trust With U.S. Employees and Regulators 

    American employees generally expect a handbook as a normal part of onboarding — it’s read as a sign of a stable, well-run employer.  

    Its absence can raise questions regarding the understanding from the Company side about operate in U.S.  

    A clear, professionally prepared handbook signals that the U.S. entity is operating on equal footing with domestic competitors, not treating its American office as an afterthought. 

    The Bottom Line 

    For a Brazilian company entering the U.S. market, an employee handbook isn’t just good HR practice — it’s the primary way to translate an unfamiliar, decentralized legal system into a concrete, enforceable set of internal rules.  

    This article is for general informational purposes and does not constitute legal advice. Because U.S. employment law varies significantly by state, companies expanding into the U.S. should work with a U.S. employment attorney — ideally one experienced with foreign parent companies — to draft a handbook tailored to the specific state(s) where they operate. 


    Written by Daniel Rangel and Vicky Alvarez Phillips 

    8 MIN

    READ

    For years, the EB-2 National Interest Waiver (NIW) was regarded as the more accessible path to an employment-based Green Card: it allows self-petitioning, without a job offer or sponsoring employer. Its appeal, however, has never been predictability, since PERM has always been the more predictable route. What drove the rush toward NIW was something else: […]

    / By Drummond Advisors

    For years, the EB-2 National Interest Waiver (NIW) was regarded as the more accessible path to an employment-based Green Card: it allows self-petitioning, without a job offer or sponsoring employer. Its appeal, however, has never been predictability, since PERM has always been the more predictable route. What drove the rush toward NIW was something else: most candidates do not have a job offer or do not want to remain tied to an employer throughout the process. For these profiles, NIW seemed like the natural choice.

    The latest USCIS data, however, point to a changing landscape that requires this assumption to be reconsidered. For the first time, NIW denials exceeded approvals among decided cases.

    This article explains why NIW has become riskier, how PERM works, and why, for most profiles, labor certification remains the more predictable route to an EB-2 Green Card.

    EB-2 NIW Has Become a Victim of Its Own Success

    The popularity of NIW grew rapidly, particularly among STEM professionals and during the remote-work boom.

    The volume of petitions nearly tripled between fiscal years 2022 and 2024, an increase of approximately 190%.

    When an instrument designed as an exception begins to be used on a large scale, the result is often predictable: greater scrutiny. That is exactly what happened.

    The Decline in Approvals Is Not Noise, It Is a Trend

    Before looking at the numbers, it is important to establish the metric. In this article, the approval rate is calculated based on cases that were actually decided, meaning approved cases divided by the sum of approved and denied cases. This measure is not distorted by the backlog of pending petitions.

    The historical series reveals the extent of the shift:

    • FY2018 through FY2023: historical rates of 96% to 97%;
    • FY2024: approximately 71% of decided cases;
    • FY2025: 55.2%, with the fourth quarter reaching a low of 35.7%; and
    • FY2026, first quarter: 42.6%, with more denials (3,206) than approvals (2,380).

    The quarterly volatility is, in itself, a warning sign. Throughout 2025, the rate fluctuated from 62.7% to 67.3%, fell to 54.0%, and then declined further to 35.7%.

    There is also a symbolic milestone. NIW, historically viewed as more accessible than EB-1A, is now being denied more frequently than EB-1A. In the first quarter of fiscal year 2026, NIW approved 42.6% of decided cases, compared with 47.5% for EB-1A.

    This deterioration is not accidental. The USCIS policy tightening throughout 2025, consolidated in the Policy Manual guidance in effect at the end of the year, targeted cases built on promises rather than facts, and this is reflected in the first two requirements of the Dhanasar test.

    Under the first prong, national importance, generic ventures, such as opening a consulting firm or providing services to third parties operating in relevant fields, have increasingly been denied because they fail to demonstrate broad impact on a field, region, or the country; diffuse economic benefit or an advantage to a single employer is not enough.

    Under the second prong, being “well positioned to advance the proposed endeavor,” USCIS has become less willing to accept arguments based on what may happen in the future: optimistic projections, a business plan on paper, or generic recommendation letters are no longer sufficient. Applicants must provide objective and independent evidence that a real company or endeavor already exists, is operating, and is actually progressing, rather than merely demonstrating the expectation of future contributions. For profiles whose narratives are more speculative than demonstrable, the risk of denial has increased significantly.

    The Hidden Cost of NIW: The Entire Burden Falls on the Self-Petitioner

    In an NIW case, the burden falls entirely on the self-petitioner. The applicant alone must build and support the national interest argument, based on the contributions they may bring to the United States, independently gathering all evidence capable of demonstrating that potential.

    That burden has become heavier. Recent adjudication trends include:

    • More frequent questioning of educational credentials;
    • Greater demands for independent documentary evidence, rather than recommendation letters alone;
    • Application of criteria borrowed from other visa categories to NIW cases; and
    • More frequent and more rigorous RFEs (Requests for Evidence) and NOIDs (Notices of Intent to Deny).

    Time is also working against applicants. The backlog of pending NIW petitions grew from 74,392 to 82,812 cases in a single quarter, meaning longer processing times and greater exposure to regulatory changes during the process.

    Image: Canva

    PERM: A Structured Process, Not a Gamble

    PERM is the labor certification process conducted by the Department of Labor (DOL) and serves as the basis for thousands of EB-2 and EB-3 Green Cards granted each year.

    Its greatest strength is precisely its structure. Rather than relying on a subjective assessment of the national importance of a candidate’s proposed work in the United States, PERM is based on objective criteria and steps that are known in advance:

    • Prevailing Wage Determination (PWD) with the DOL through ETA-9141;
    • Required recruitment and Notice of Filing;
    • Labor market test demonstrating the absence of a qualified and available U.S. worker;
    • Filing of ETA-9089 through the DOL’s electronic FLAG system, mandatory since June 1, 2023;
    • DOL certification;
    • I-140 petition with USCIS; and
    • Adjustment of status (I-485) or consular processing.

    Each step is auditable and defensible. And the burden is no longer placed exclusively on the beneficiary: the sponsoring employer, with support from immigration counsel, shares responsibility for building and funding the case.

    The numbers reflect the difference. In the first quarter of fiscal year 2026, EB-2 cases through the PERM route (E21) had a 98.4% approval rate among decided cases, more than double the NIW rate during the same period.

    PERM vs. NIW: Where the Case Is More Secure

    A direct comparison helps clarify why PERM has an advantage under the factors that currently carry the most weight:

    • Approval predictability: approximately 98% for PERM (E21) versus approximately 43% for NIW;
    • Burden of proof: shared between the employer and attorney in PERM, entirely on the beneficiary in NIW;
    • Evidence standard: objective, process-based documentation in PERM versus a discretionary showing of national importance in NIW;
    • Case stability: support from an employer in PERM versus an independent self-petition exposed to variations among adjudicating officers in NIW; and
    • Costs: recruitment costs are covered by the employer in PERM, while the beneficiary bears the costs in NIW, including responses to RFEs and NOIDs.

    One figure captures the shift particularly well: in fiscal year 2025, the volume of NIW petitions (66,276) exceeded that of EB-2 cases through PERM (49,921). The exception began to be used more than the rule, and that widespread use attracted the scrutiny that is now affecting the category.

    Who Is PERM the Right Choice For?

    In practice, PERM is the more suitable route for many EB-2 profiles. It often makes sense for:

    • Professionals with a job offer and an employer willing to sponsor them;
    • Engineers, IT professionals, managers, and other strong candidates without a clear national importance narrative;
    • Candidates who have already had an NIW denied or have received an RFE or NOID; and
    • Those who value predictability over independence.

    Recognizing the Trade-Offs of PERM

    No pathway is without drawbacks. PERM depends on a willing employer and involves strict recruitment requirements, specific timelines, and some risk of an audit.

    The difference is that these are known, predictable, and manageable challenges with proper counsel, rather than the growing uncertainty that currently characterizes NIW.

    NIW, in turn, remains an excellent pathway for truly exceptional profiles, such as leading scientists, researchers working in critical technologies, and professionals in healthcare and national security with a strong track record. The issue is not abandoning NIW, but using it only when the level of risk is justified.

    The Strategic Question Before Filing

    In the current landscape, the decision between PERM and NIW should not be automatic. Before choosing a pathway, it is worth answering several questions:

    • Does the profile convincingly support a national importance narrative under the current level of scrutiny?
    • Is there an employer willing to sponsor the candidate and complete the PERM process?
    • What is the real cost, in terms of time and risk, of a potential denial under each pathway?
    • Is the immigration timeline aligned with the candidate’s professional and personal timeline?

    The answers to these questions, rather than NIW’s former reputation as a shortcut, should guide the decision.

    Conclusion

    Predictability has become the most valuable asset in an employment-based immigration process.

    For many EB-2 profiles, PERM offers that predictability today, not because it lacks procedural steps, but because it is built around clear rules, objective criteria, and a burden shared with the employer.

    Even so, the best pathway depends on the facts of each case. An individualized assessment with an immigration professional is what turns market data into a sound strategy for pursuing a Green Card.

    Written by Julia Malheiros and Larissa Matos

    2 MIN

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    The acquisition of the Brazilian company, a specialist in surface treatments for fasteners, strengthens the Group’s international position in advanced anti-corrosion protection technologies. Milan, June 30, 2026 – Primat Curtis has announced the acquisition of Realtec, a Brazilian company specializing in surface treatments for fasteners and recognized for its expertise in zinc flake coating technologies […]

    / By Drummond Advisors

    The acquisition of the Brazilian company, a specialist in surface treatments for fasteners, strengthens the Group’s international position in advanced anti-corrosion protection technologies.

    Milan, June 30, 2026 – Primat Curtis has announced the acquisition of Realtec, a Brazilian company specializing in surface treatments for fasteners and recognized for its expertise in zinc flake coating technologies (bulk and electrostatic) as well as PTFE spray coating solutions.

    The transaction marks another strategic step in strengthening the Group’s international footprint in an increasingly global marketplace. With Realtec’s two manufacturing facilities located in the Brazilian states of São Paulo and Minas Gerais, Primat Curtis will be able to provide customers with an even stronger local presence and enhanced service capabilities across the automotive, oil and gas, and heavy machinery industries.

    Through this acquisition, Primat Curtis continues to execute its growth strategy focused on international expansion and strengthening its industrial capabilities by integrating technological expertise and process know-how in a market where quality, reliability, and sustainability are becoming increasingly important competitive advantages.

    The Primat Group, which operates manufacturing facilities in the Italian regions of Lombardy, Piedmont, Emilia-Romagna, and Friuli Venezia Giulia, is controlled by HAT SGR and Tendercapital Alternative Funds PLC – CFSE Tendercapital Alternative IV Fund. The Group is a leading provider of advanced technological services for the treatment of fasteners—including bolts, nuts, and other components—primarily serving the automotive industry.

    Image: Canva

    The acquisition of Realtec is part of an international consolidation and expansion strategy launched in 2023 with the acquisition of a 65% stake in the U.S.-based Curtis Metal Finishing and a 97.5% stake in Italy’s Vi.Pi.Effe Pen. These transactions established the world’s largest provider of technological services for fastener treatment, with operations across North America, Brazil, and Europe and annual revenues of approximately €130 million.

    The Group is led by Global CEO Jeff Wilson, formerly CEO of Curtis Metal Finishing prior to its acquisition by Primat. Wilson led the acquisition of Realtec with the support of CFO Luca Cassiani.

    Transaction Advisors

    Primat Curtis was advised on all legal aspects of the transaction by GA-Alliance and GA-Alliance Brazil (Drummond Advisors), which worked as a single, fully integrated legal team across Italy and Brazil.

    The transaction structuring and negotiation of the definitive agreements were led by partners Marco Bertini and Pedro Drummond, with support from Counsel Filomena Zonno.

    The Brazilian legal work was led by Mariana Belisario and Mariana Tavares on the legal due diligence; Daniel Reines and Julia Soares on the labor due diligence; and Allan Bachtold on the tax due diligence.

    5 MIN

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    For years, “extraordinary ability” in U.S. immigration was associated with celebrities, athletes, artists, and Nobel Prize winners. That perception is rapidly becoming outdated. Today, many of the most successful users of this category are startup founders, AI entrepreneurs, venture-backed executives, researchers, and technology operators. As global competition for talent intensifies, extraordinary ability has evolved from […]

    / By Marcos Ferreira

    For years, “extraordinary ability” in U.S. immigration was associated with celebrities, athletes, artists, and Nobel Prize winners. That perception is rapidly becoming outdated. Today, many of the most successful users of this category are startup founders, AI entrepreneurs, venture-backed executives, researchers, and technology operators. As global competition for talent intensifies, extraordinary ability has evolved from a niche immigration category into a strategic tool for building and scaling companies in the United States.

    The Rise of Founder-Led Immigration Strategies

    Today’s startup ecosystem looks very different from what it did a decade ago. Founders build global companies from day one, teams are distributed across multiple countries, investors back talent regardless of geographic location, and AI has dramatically lowered the barriers to launching high-growth ventures.

    As a result, founders increasingly need U.S. immigration strategies that match the speed and ambition of their business plans.

    Traditional employer-sponsored pathways do not always fit. Early-stage founders may not yet have a large U.S. entity, venture-backed executives may need flexibility to move among affiliated companies, and AI entrepreneurs may be building entirely new categories of technology that do not align with conventional employment models.

    This is where extraordinary ability pathways come into play.

    The O-1A Visa: Not Just for Celebrities

    The O-1A visa is available to individuals who have demonstrated extraordinary ability in business, science, education, or athletics.

    While many people associate the category with famous names, a growing number of successful O-1A beneficiaries today are founders and executives, including:

    • Venture-backed startup founders
    • AI and machine learning entrepreneurs
    • Technology executives leading high-growth companies
    • Investors and fund managers
    • Product leaders responsible for significant innovations
    • Researchers commercializing breakthrough technologies

    The key issue is not fame, but evidence.

    USCIS evaluates whether an individual has achieved a level of distinction that places them among the small percentage at the very top of their field.

    For founders, that evidence may include:

    • Venture capital funding
    • Industry awards
    • Media coverage
    • Speaking engagements
    • Judging or mentoring roles
    • Patents and innovation
    • Significant business achievements
    • Leadership of high-growth organizations

    In many cases, founders who assume they are not qualified are actually much stronger candidates than they realize.

    The EB-1A: Permanent Residence Through Extraordinary Ability

    Often referred to as the “green card equivalent” of the O-1A, the EB-1A immigrant category also focuses on sustained national or international acclaim and extraordinary achievement, and its strategic importance has grown significantly in recent years.

    For founders and executives, it offers several advantages:

    • No labor certification requirement
    • No employer sponsorship requirement
    • Self-petition eligibility
    • Greater long-term flexibility
    • Alignment with entrepreneurial career paths

    For startup founders, this can be transformative.

    Rather than tying permanent residence to a single employer, founders maintain the flexibility to build, scale, acquire, or pivot businesses—a significant advantage in an environment where innovation cycles are accelerating and entrepreneurial careers are increasingly dynamic.

    In practice, the EB-1A is often the natural next step after the O-1A.

    The O-1A opens the door, allowing founders to enter the United States and begin building their companies. Once they have established a meaningful impact and gained recognition in the U.S. market, the EB-1A provides a pathway toward permanent residence.

    This progression also addresses a structural limitation of the O-1A. While the visa may initially be granted for up to three years, subsequent extensions are generally approved in one-year increments. As a result, the O-1A serves as an effective entry vehicle but is not always the most convenient long-term solution.

    The EB-1A enables founders who have built a record of acclaim in the United States to convert that success into the stability of permanent residency.

    Image: Canva

    Why AI Entrepreneurs Are Particularly Well Positioned

    Artificial intelligence has created an unprecedented opportunity for extraordinary ability cases.

    Many AI founders and technical leaders are already generating evidence that naturally aligns with O-1A and EB-1A criteria, including:

    • Development of innovative AI systems
    • Significant open-source contributions
    • Patents and intellectual property
    • Conference presentations
    • Industry recognition
    • Academic publications
    • Media coverage
    • Venture capital investment
    • Leadership roles in rapidly growing companies

    Importantly, extraordinary ability does not require a Ph.D. or an academic appointment.

    Many of today’s most influential AI entrepreneurs have built their reputations through execution, product innovation, company building, and market impact.

    USCIS increasingly reviews applicants whose influence stems from technology adoption, company growth, ecosystem leadership, and business innovation rather than solely from traditional academic credentials.

    Venture-Backed Executives Are Emerging Candidates as Well

    A growing number of venture-backed executives are also pursuing extraordinary ability strategies.

    Growth-stage companies frequently recruit leaders with specialized expertise in:

    • Artificial intelligence
    • Product management
    • Revenue operations
    • Cybersecurity
    • Fintech
    • Health technology
    • Enterprise software

    These executives often possess accomplishments that extend far beyond their current employer.

    They may have:

    • Led successful exits
    • Managed major business units
    • Developed industry-transforming products
    • Served as judges, advisors, or mentors
    • Received awards or professional recognition
    • Contributed to widely adopted technologies

    As a result, extraordinary ability categories are becoming increasingly relevant not only for founders, but also for the leadership teams responsible for scaling innovative companies.

    The New Definition of Extraordinary

    Extraordinary ability categories were never intended exclusively for celebrities. They were designed to attract individuals whose work creates meaningful impact within their fields.

    In today’s economy, that increasingly means founders, innovators, investors, operators, and AI entrepreneurs.

    The next generation of extraordinary ability applicants may not be movie stars or professional athletes. They may be the founder building the next AI platform, the executive scaling a venture-backed company, or the entrepreneur creating jobs, attracting investment, and driving innovation.

    And that is precisely why extraordinary ability is increasingly becoming a founder strategy rather than simply a category for celebrities.

    Written by Chris Costa, Senior Associate – U.S. Immigration

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    We would like to remind you that the deadline for filing the Brazilian Corporate Income Tax Return (Escrituração Contábil Fiscal – ECF) for the 2025 calendar year is July 31, 2026. In this context, we would like to highlight several areas that require special attention: Block X – Transfer Pricing • Transfer Pricing rules were […]

    / By Drummond Advisors

    We would like to remind you that the deadline for filing the Brazilian Corporate Income Tax Return (Escrituração Contábil Fiscal – ECF) for the 2025 calendar year is July 31, 2026.

    In this context, we would like to highlight several areas that require special attention:

    Block X – Transfer Pricing

    • Transfer Pricing rules were updated by Law No. 14,596/2023 and Brazilian Federal Revenue Service Normative Instruction No. 2,161/2023.

    • Transfer Pricing analyses conducted under the new legislation must be properly reflected in the ECF.

    • It is essential to review the methods applied, any required adjustments, and supporting documentation to avoid inconsistencies and potential tax assessments.

    Block X – Worldwide Taxation

    • Brazil’s Worldwide Taxation Regime requires Brazilian legal entities with investments in foreign companies to recognize the results of those foreign entities for Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) purposes.

    • Information regarding the foreign investee company, including its balance sheet and income statement, must be reported in Block X of the ECF.

    • It is critical to review the information being reported, the adjustments made, and any applicable offsets or consolidations to ensure proper reporting in accordance with Brazilian tax legislation.

    Image: Canva

    Block W – Country-by-Country Report (CbC Report)

    • Companies that are part of multinational enterprise groups with consolidated revenue exceeding the applicable threshold must submit a Country-by-Country (CbC) Report.

    • Proper completion of this filing ensures transparency and compliance with international reporting standards.

    Our Solution

    We offer a specialized review service for Blocks X and W of the ECF, ensuring:

    • Compliance with current legislation;

    • Mitigation of tax risks;

    • Timely filing within the statutory deadline.

    Please contact our team through the available chat or by email at info@drummondadvisors.com to schedule a review and ensure full compliance with this reporting obligation.

    Written by Hanna Lauar, Senior Associate at Drummond Advisors

    6 MIN

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    For many years, expatriation was viewed almost exclusively as a corporate benefit or an operational tool used to fill strategic positions in other countries. Today, that perspective is no longer sufficient. In a global environment marked by geopolitical instability, regulatory changes, talent shortages, and increasing pressure for efficiency, global mobility is no longer just an […]

    / By Drummond Advisors

    For many years, expatriation was viewed almost exclusively as a corporate benefit or an operational tool used to fill strategic positions in other countries. Today, that perspective is no longer sufficient.

    In a global environment marked by geopolitical instability, regulatory changes, talent shortages, and increasing pressure for efficiency, global mobility is no longer just an HR process. It has become a strategic business discipline.

    Multinational companies headquartered in Brazil, especially those operating in complex, regulated, and multicultural environments, must understand that a robust international mobility program does more than protect the expatriate executive. It protects the operation, the company’s reputation, governance, tax compliance, and, above all, its ability to execute business strategy.

    The reality is that many organizations still underestimate the risks associated with poorly structured expatriation processes. The cost of this oversight can be significantly greater than the investment required to build a mature and sustainable mobility policy.

    What Does a Strong Global Mobility Program Look Like in Practice?

    An effective global mobility program goes far beyond visa processing, benefit administration, or the logistical transfer of employees between countries.

    It requires coordination among multiple business functions, including:

    • Human Resources
    • Legal
    • Tax
    • Finance
    • Compliance
    • Corporate Security
    • Payroll
    • Succession Planning
    • Risk Management

    In practice, global mobility is about managing people, risks, costs, and culture simultaneously.

    The most mature organizations view international mobility as an integral part of their growth, international expansion, talent retention, and leadership development strategies.

    Key Areas of Attention in Expatriation Programs

    1. Immigration and Regulatory Compliance

    One of the most common mistakes is oversimplifying immigration matters.

    Every country has specific rules regarding:

    • Visas
    • Work permits
    • Tax residency
    • Length-of-stay limitations
    • Permitted activities
    • Social security obligations
    • Bilateral agreements

    An executive working without proper compliance may create:

    • Financial penalties
    • Operational restrictions
    • Reputational risks
    • Future limitations for the company
    • Labor and tax liabilities

    In highly regulated industries, these issues can even jeopardize contracts and operating licenses.

    2. International Taxation: Perhaps the Greatest Hidden Risk

    Global mobility taxation is often one of the most complex and overlooked areas.

    Issues such as:

    • Double taxation
    • Tax residency
    • Tax equalization policies
    • Shadow payroll requirements
    • Taxation of bonuses and stock options
    • Social security contributions
    • International agreements
    • Transfer pricing implications related to executive allocations

    must be carefully evaluated.

    It is not uncommon for companies to discover significant tax liabilities years later as a result of improvised mobility structures.

    The challenge becomes even greater when different countries apply different interpretations regarding employment relationships and taxable income.

    3. Underestimated Costs and Lack of Governance

    Many organizations calculate only the direct costs of expatriation:

    • Salary
    • Housing
    • Schooling
    • Travel expenses

    However, indirect costs are often substantially higher:

    • Tax implications
    • Foreign exchange fluctuations
    • International insurance coverage
    • Supplemental benefits
    • Relocation expenses
    • Legal and advisory services
    • Family adaptation support
    • Post-assignment turnover

    Without clear governance, metrics, and policies, international mobility can quickly become an uncontrolled cost center.

    Mature organizations typically maintain:

    • Standardized global policies
    • Clear eligibility criteria
    • Financial limits and guidelines
    • Approval structures
    • Return-on-investment metrics
    • Integrated risk management frameworks

    4. The Human Factor: The Most Neglected Element

    Perhaps the greatest corporate mistake is treating expatriation solely as a technical relocation.

    In reality, it represents a profound life transition.

    Many assignments fail not because of the executive’s technical capabilities, but due to:

    • Cultural adaptation challenges
    • Social isolation
    • Family-related difficulties
    • Culture shock
    • Spousal adjustment issues
    • Children’s educational adaptation
    • Emotional and mental health concerns

    Global studies consistently show that a significant percentage of failed expatriate assignments stem from family and cultural factors rather than professional performance.

    Sophisticated organizations invest in:

    • Cross-cultural training
    • Psychological support
    • Family preparation programs
    • Executive coaching
    • Ongoing assignment support
    • Local integration initiatives

    International mobility is not simply about relocating talent. It is about ensuring that talent can perform sustainably and successfully.

    5. Repatriation: The Challenge Almost Nobody Plans For

    Ironically, many organizations carefully structure the departure but completely neglect the return.

    This is a strategic mistake.

    Returning expatriates bring back:

    • New business perspectives
    • Multicultural experience
    • Enhanced leadership capabilities
    • International expertise
    • Global professional networks

    When organizations lack a reintegration strategy, returning executives often experience:

    • Loss of influence and visibility
    • Career misalignment
    • Frustration
    • Underappreciation of their international experience

    The result is predictable: many companies invest heavily in developing international talent only to lose those professionals shortly after their return.

    Image: Canva

    Common Challenges Faced by Companies

    Lack of Cross-Functional Integration

    HR, Legal, Tax, and Finance teams often operate independently, creating inconsistencies and increasing risk exposure.

    Global Policies That Do Not Align with Brazilian Regulations

    Brazil’s labor and tax systems are highly complex. Policies imported from foreign headquarters do not always function effectively within the local legal environment.

    Lack of Financial Predictability

    Without proper planning, mobility costs can increase exponentially.

    Difficulty Measuring Return on Investment

    Companies frequently assign employees internationally without clearly defined business objectives, succession plans, or knowledge-transfer goals.

    Talent Loss Following International Assignments

    Without structured career management, valuable human capital investments may be lost.

    The Key Benefits of a Mature Global Mobility Strategy

    Despite its complexity, organizations that successfully structure international mobility programs realize substantial benefits.

    Accelerated Leadership Development

    International executives tend to develop:

    • Strategic thinking
    • Adaptability
    • Cultural intelligence
    • Decision-making capabilities in complex environments

    Global Knowledge Transfer

    Mobility facilitates the exchange of best practices, corporate culture, and technical expertise across business units.

    Strategic Talent Retention

    International opportunities are often viewed by employees as highly valuable career development experiences.

    Stronger Global Corporate Culture

    Mobility programs help multinational organizations create greater alignment across global operations.

    Reduced Risks and Liabilities

    A well-designed mobility framework significantly reduces labor, tax, immigration, and reputational risks.

    Enhanced International Competitiveness

    Prepared organizations can respond more effectively to global expansion, transformation, and operational integration demands.

    The Future of Global Mobility

    The concept of international mobility is evolving rapidly.

    Today, organizations already manage:

    • Hybrid expatriates
    • Corporate digital nomads
    • International remote workers
    • Distributed multicultural teams
    • Short-term assignments
    • Temporary global projects
    • Flexible mobility arrangements

    These developments create even greater tax, regulatory, and governance challenges.

    The future will require organizations to become less bureaucratic but significantly more sophisticated in risk management, technology adoption, compliance, and employee experience.

    Conclusion

    Global mobility is no longer merely an operational HR function. It is a strategic component of the modern corporate agenda.

    Multinational companies headquartered in Brazil must recognize that successful expatriation depends on balancing:

    • Compliance
    • Financial efficiency
    • Risk management
    • Talent strategy
    • Cultural intelligence
    • Human experience

    When properly structured, international mobility ceases to be a cost and becomes an investment in leadership development, global integration, and sustainable value creation.

    Because, ultimately, global business is still conducted by people. And people do not cross borders successfully with visas and contracts alone. They do so with structure, security, purpose, and a sense of belonging.

    Written by Ana Gabriela Francelli, Director of Legal Operations at Drummond Advisors.