Use the Internet to research foreign corporation branch profits tax and effectively connected income issues in the United States.

Imagine you are a CPA and your foreign client with U.S. operations has requested information on the tax advantages and disadvantages of establishing branch operations in the United States versus the use of an agent.

• Create a scenario with at least two specific examples demonstrating the major advantages and disadvantages of either establishing branch operations or using an agent to conduct business in the United States.
• Be sure to provide a recommendation to your client and any applicable tax laws supporting your recommendation.