30% of the total world economic activity is the US market, the reason why this can prove to be a real opportunity to start a certain business. However, the complicated processes of starting a business, employment, taxes, and legal obligations can be a major hurdle for many looking to invest in the U.S. market; to all this, among other things, we must add an understanding of a foreign language.
Is the US a country of opportunities or challenges?
With a population of 328 million, the United States is considered a large consumer market; this is true for domestic as well as foreign investments, so it often happens that the world’s largest economy attracts many foreign entrepreneurs.
The sheer size of the US makes it a country with a lot of opportunities, although we have to take into account that recognizability in the US market can be a real challenge. The entire state is a federal system that includes all 50 countries, which means that legal obligations vary from country to country, so it is very important to know them well if we want company registration in USA and American market.
Establishment in the American market
Before you decide to invest in the US, you need to focus on establishing the most suitable business entity. The United States, like all other countries in the world, has certain rules regarding the establishment of business entities, as well as obligations on an annual basis to perform those activities.
The most common types of companies are joint stock companies, limited liability companies (LLCs) and limited partnerships. Each of them has certain advantages, and the choice depends primarily on legal and business factors; also, it is important to note the fact that each type of business entity is established in accordance with the laws of the state in which it is established.
All types of business entities, with the exception of limited partnerships, require that all documents related to the establishment be submitted to the government of the country. U.S. law treats these businesses as legal entities; this means that, in the event of insolvency, the company is able to declare bankruptcy without risk to the personal property of the owner.
Limited Liability Company (LLC)
The limited liability company is managed by members who are also the owners of the company. In this case, it is possible to decide whether the company will be taxed as a joint stock company or the income will be transferred to the members and thus will be taxed at the level of the members. Members’ personal liability is limited to their investments.
Any foreign company may also choose to partner with another business entity to do business together in the United States. A written agreement is then recommended, although it is neither necessary nor binding. And that means that it can be an oral agreement, without the need for any written documentation or submission to the same state.
In order to establish a company’s identity and to file a tax return, it is necessary for every start-up company in the U.S. to obtain an ITIN number.