BUSINESS ENTERTAINING IN THE USA

Business entertainment is not as elaborate or as widely used in the USA as it is in certain other countries. Business luncheons are still common especially when selling or providing customer service, but after-hours entertainment is quite rare. In some industries, executives and managers are so overburdened with work that they are unwilling to waste time on anything not directly related to their job. Such individuals shun business lunches and business entertainment. There are always exceptions to this rule, and at least a few business executives still expect to be entertained by their vendors.

Business Lunches

The business lunch is the most commonly used form of business entertainment in the USA. Typically, a sales person or a customer service representative will establish an appointment to meet with a client or a prospective client around midday, and will offer to take him or her to lunch. Such luncheons are often modest meals at nearby restaurants or sandwich shops. Occasionally, clients expect more expensive meals at high-class restaurants. Always remember that some business people have dietary restrictions due to religious beliefs, health concerns or nutritional preferences. To avoid embarrassing mistakes, it is usually wise to ask the client where he or she would prefer to dine.

Business is typically discussed before or after eating, while light non-business conversation is preferred during the meal. The seller always pays for the buyer's meal. Remember to add a 15 -20% gratuity to your check before you sign the credit card receipt. Neglecting to tip the wait staff may give your client a negative impression about your generosity.

Occasionally, a busy business executive will suggest a working lunch in the office in order to save time. Each person would order take-out food from a local restaurant, and the food would be consumed at the office. Light social conversation might ensue during the brief meal or business may continue while eating. The vendor should always offer to pay for everyone's lunches.

Breakfast or Dinner meetings

Some executives are so busy that they seldom leave their offices for lunch. Occasionally, such individuals prefer brief business meetings over breakfast before beginning their workdays at the office.

Most executives in the USA avoid mixing their personal lives with their business careers and prefer to go home to their families immediately after work. There are always exceptions to the rule. When receiving a business visitor from out of town, especially a visitor from another country, many Americans will graciously take time after work to entertain the guest. Some will even graciously invite the business guest to their own home for dinner with their family.

If you are invited to dine at a business associate's home in the USA, you should take a small gift to show appreciation for the hospitality. A bottle of wine for the host or hostess, a bouquet of flowers for the wife, or a box of chocolates for the children are good choices. Many homes in the USA are smoke-free, so always ask permission before you light a cigarette or cigar in someone's house. Do not take offence if they ask you to step outside to smoke, as that is common courtesy in many US homes.

Other entertainment

When hosting business associates from out of town, some executives will take their guests to theaters, sports events or local attractions. Some vendors will offer their clients free tickets to sporting events. Golf outings at local courses are a commonly used method of meeting or entertaining a business client. Taking clients out to bars, nightclubs or risqué entertainment is not common and may be considered offensive to some business executives.

Elaborate or extended trips to vacation resorts, hunting or fishing trips and expensive entertainment may be considered excessive by some business executives but may be expected by others. The danger of lavish or expensive entertainment is that it may be considered bribery by some business executives, and may be prohibited by corporate policy.

Tax implications

Business entertainment is recognized as a legitimate business expense by the Internal Revenue Service and may be deducted from business profits under most circumstances. Business lunches for the purpose of selling are fully deductible expenses. Business lunches for other legitimate business purposes are only 50% deductible when computing tax liability. Entertainment is normally considered a legitimate business expense if the host accompanies the guest to the entertainment for the purpose of conducting business. (The Internal Revenue Service takes a rather liberal interpretation of "conducting business".) Sports or entertainment tickets given to a business client are considered a gift and are deductible only up to the maximum of $25.

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