If you’ve ever thought about doing business abroad, you may wonder how to open a business in the USA, because it’s the country with the largest economy in the world.
But the fear of bureaucracy or lack of knowledge of the process discourages some people, and we will see in this article that the process of how to open a business in the USA can be less bureaucratic than you think.
What are the advantages of opening a business in the USA?
Opening a business in the USA means moving financial capital in one of the most highly valued currencies of the financial market and has the possibility of doing business with investors in a heated economic scenario.
The US country is still the largest economy in the world with the highest Gross Domestic Product (GDP) per capita. In 2019, the American GDP was valued at $21.43 trillion.
The country’s stable economy helps attract even more investors, expanding the market.
In addition, many entrepreneurs are attracted by well-established laws and simpler rules, unlike some processes in Brazil, which are usually slower and more bureaucratic.
Having your own business such as a franchise or a branch that has a unit in the USA usually has greater credibility and is seen with other eyes.
Having a business abroad can help leverage your brand and stabilize your business.
You have access to favorable legislation and migration advantages, one of the favorable points of how to open a business in the USA is the legislation.
Entrepreneurs usually highlight as an advantage the relationship with the US financial system, the more favorable labor laws, and less bureaucratic taxation, which can help facilitate the management of the company.
A market research, done by a specialized consulting company, will help you a lot in the process of opening a business in the USA.
HOW TO OPEN A BUSINESS IN THE USA?
It is possible to open a business in the USA by e-mail or fax, without having to travel abroad.
However, the most recommended thing to do is to count on the help of a specialized consultancy to support entrepreneurs who want to open a company abroad, because the legislation is different.
- Determine the state in which you will open your business. Choose the state in the U.S. territory in which you want to open your business, and try to understand what the rules and laws are. Remember that each state may be different,
- It is also important to define the business address, which is mandatory to open the company.
- Appoint a registered agent To open your business, you will need a registered agent, an individual or legal entity who will formally be responsible for receiving legal and state correspondence from the company
- Select the type of business you will be opening. Select which type of company will make the most sense for your business: Corporation, Partnership, Sole Proprietorship, LLC or LLP.
- Define and register the company name and address. Define in this step the name and address of the company. You must also have a trade name, known in the US as Doing Business As (DBA).
- Register your company and apply for the EIN and register your company by applying for a Federal Employer Number (EIN), which is like our CNPJ, at the department of the state of the company’s business address in the country.
- Open an account in an American bank. To have a business in the USA , it is necessary to create a bank account in the country, in order to be able to make transactions,
- Secure a Tax Collector’s Office (TCO) or Sales Tax If your company will sell products, you will need to issue a Sales Tax certificate, which allows you to pay and collect the appropriate taxes on each sale.
WHAT DO YOU NEED TO OPEN A BUSINESS IN THE USA?
To open a business in the USA, you only need a Brazilian passport or other identification document, and you must have a fixed business address in the US state where you intend to open your business.
You don’t need to live in the USA to open an account, and many people use the address of friends or family who live in the country to facilitate the opening process.
In this way, the company works as a so-called virtual office, i.e., you can provide services in the USA while working from Brazil.
In addition, to open a business in the country it is necessary to have an American bank account and count on the help of some specialized advice or accounting to avoid mistakes in the process of opening and paying taxes, since the legislation between the USA and Brazil are very different.
It is worth remembering that opening a company in the USA does not guarantee the right to live in the country, but it makes it easier for those who intend to get a visa.
How much it costs to start a company in the USA
It takes between $500 and $2,000 to open a business. To be sure of the amount, it is necessary to check the rules of the state you wish to enter, because the rules change because they are autonomous states.
The entrepreneur who wants to open a company there to seek permanent residency must be aware that the country requires a high investment, of $500,000.00 in areas pre-established by the USA, or a million dollars in any area.
This company must also generate new jobs, usually at least ten new jobs on American soil and for a period of two years.
It is a way for the country to have control over the opening of new companies and the impact they will have on the country’s development, economy, and job supply.
Just as in Brazil there are different types of companies, such as MEI, EIRELI, LTDA and S.A., in the United States there is also this division.
SOLE PROPRIETORSHIP (SP)
A Sole Proprietorship is a company that has a single owner and no partners.
In this form, there is no clear separation between owner and business, and the owner of the company is responsible for all obligations, including the assets, with no possibility of limitation.
GENERAL PARTNERSHIPS (GP)
As the name suggests, it is the modality that allows the inclusion of partners (partners). In this type of company, ownership can be shared, with division of financial contribution and responsibilities.
In this type of company, the potential shareholders invest resources as the company’s capital stock, but do not determine the percentage of the shares for each investor. In this model, the profit is distributed among the shareholders after a period of one year.
LIMITED LIABILITY COMPANIES (LLC)
Another type of how to start a business in the usa, is the Limited Liability Company (LLC), a privately held form of organization in which the members of the business also have liability limited to the unpaid amount on the shares that the members hold.
LIMITED LIABILITY PARTNERSHIPS (LLP)
The Limited Liability Partnership is widely used by Brazilians in the USA. In this type of company, which is available under state law, there are special rules for foreigners.
Here you saw how opening a business in the USA can be possible without much complication. The process ends up being much less bureaucratic than you think.
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