The first stage in developing a global brand is establishing a business in the United States. As the American economy grows, so do product sales and service demand. Aside from this, the country has a highly developed higher education system that gives businesses access to qualified people they might not find in their own country. Entrepreneurs from all spheres of life can benefit greatly from conducting business in the United States. Now, the question is: why launch a business in the USA? We discuss below.
7 reasons you should launch a business in the USA
Strong entrepreneurial spirit is present.
The USA is the place to be for entrepreneurship since it is firmly business-friendly. The nation offers a diverse, inventive, and business-friendly atmosphere, regardless of your project.
A study indicates that among the top ten cities in the world for entrepreneurship are five American cities: New York, San Francisco, Los Angeles, Boston, and Chicago. The study evaluated the entrepreneurial ecosystem in 75 cities throughout the world.
Company formation is quick and simple.
It is generally straightforward and quick to launch a business in the USA, even for a non-resident. However, this may vary based on the legal status selected. Furthermore, taxation is sometimes quite beneficial for businesses in certain States.
The market is enormous.
When you launch a business in the USA., you have access to over 329.5 million prospective customers distributed throughout 50 States and 9.834 million square kilometers. You will gain from a sizable partner network, a skilled workforce, and a variety of options in several high-performance company areas.
The financial system is sound and growing.
For international investors, the USA offers a reliable, robust, and reassuring market because it is one of the top economies in the world. The US dollar is also a strong and respected currency globally.
A steppingstone for global development.
The USA also provides entrepreneurs with the perfect launch pad for worldwide business expansion due to its massive cultural and geographic reach.
Technological progress
The country’s reputation for having access to cutting-edge technology makes it more desirable asa business destination. Many foreign investors establish businesses in the United States to access technical advancements and boost their companies’ production and global communications.
Intellectual property protection
The USA is a world leader in intellectual property rights (IPR) protection. Approximately one million requests for trademark registration or patent protection are submitted to the American Patent Office yearly.
How to set your goals and pick your location
Once your market research is complete, you can now create a business plan and specify your company’s financial and marketing goals. You must consider the necessary funding, the administrative and legal procedures, the local laws, the health of the local market, the communication plan you must implement, etc., to accomplish this.
You must also carefully target the best city and neighborhood where you intend to establish your firm.
Selecting a business structure
Selecting the best legal entity for your company is crucial when launching a business in the USA. There are around 15 different legal business statuses in the country. The top three are listed below:
- Sole Proprietorship: this is comparable to being an auto-entrepreneur. Owners launching their own business will find it quite easy to set up and run.
- Limited Liability Company (LLC): this is popular due to its adaptability, simplicity of setup, and favorable tax rates. The partners’ personal obligation is capped at the amount of their contributions, and you might only owe income tax (no company tax). There is no limit to the number of company members, and it offers a favorable tax rate and is fiscally honest.
- The C-Corporation: this is made up of one or more shareholders, and their liability is only as much as their contributions. Corporate tax is applied.
Other structures are Limited Partnership, General Partnership, and Limited Liability Partnership.
Your business structure will rely on a few factors, including the kind of your business, your financial resources, the number of partners you have, your growth possibilities, where you plan to establish, etc. Legal structures can differ significantly between states.
Visa application
For foreign nationals to launch a business in the USA, you must obtain a visa. E visas, or investor visas, are available (the Treaty Trader visa -E1- and the Treaty Investor visa -E2). These visas are designed for foreign investors who want to invest in or establish a business in the US. Citizens of nations with existing trade agreements with the USA are eligible for E1 and E2 visas.
If the firm is financially viable, these visas, which are not ones for immigration, can be extended indefinitely. They have a five-year validity period. Visit the website of the USA embassy in your country for details on the procedures and requirements of visa qualification.
Obtaining assistance while you settle in the USA
There are several organizations that may assist you in setting up your business in the USA., and you may also want to get in touch with the Chamber of Commerce and Industry in your country.
Choosing your location
There are numerous appealing, vibrant, and forward-thinking cities in the USA where you can launch your business, including:
- Los Angeles and San Diego, California
- Seattle
- New York
- Miami, Florida
- Washington DC
- Chicago, Illinois,
- Houston, Texas
- Charlotte, North Carolina
Naturally, this decision will rely on your choices for things like residency and lifestyle. Along with these factors, you should consider the local economy, cost of living, and growth industries.
What industries are expanding in the US?
The USA has a diverse range of industries, including biotechnology, fintech, agri-food, automobiles, telecommunications, tourism, real estate, agriculture, digital, aviation, and clean energy.
If you plan to launch a business in the USA, keep in mind that the location significantly impacts which industries are profitable. Therefore, in-depth research is a must.
One of your options if you want to launch a business in the USA is to seek assistance from an incorporation agent like Bolder Launch-US. We support individuals and businesses that intend to form corporations and access the American market.
For more information on how we can assist you, get in touch to consult with us for free.
This guide is part of Company Formation in our Launch Guide.
