Red Consulting success stories: How to migrate your business to the USA

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Red Consulting success stories

In this article we will work on the advantages of migrating your business to the United States, demonstrating, among several Red Consulting success stories, a very special Case, a company that was structured with our help.

Red Consulting success cases

Ultramedic specializes in veterinary diagnostic imaging equipment.

With our help he managed to organize himself and also sell in the United States.

Do you want to understand how this process is? Follow our article and understand.

A business in the United States

The United States has always attracted entrepreneurs from around the world, which

see it as a particularly favorable environment for entrepreneurship.

The spirit of creating and conquering new markets, so characteristic of

United States, encourages these entrepreneurs to experience the adventure

to start a business on American soil.

With more than 320 million inhabitants, the development prospects for companies are immense.

Entrepreneurs who have launched themselves continually praise the administrative flexibility and business opportunities offered by this country compared to other countries like Brazil, although the situation is improving steadily.

However, if launching your company in the United States seems easy, it is essential to prepare well for failure to occur.

If you also want to immigrate to Uncle Sam’s country to establish your company there or simply test the marketing of your products and / or services in that market, we suggest that you read the following tips.

Define your implementation strategy

If you want to create successfully in the USA, it is clear that you should start by developing your business plan and studying your market to develop a strategy that is adapted to it.

It is the very basis of the business creation process.

Carrying out a good market study is an essential prerequisite to absorb the functioning and the state of the market, as well as the competition.

Next, it should be emphasized that the introduction in the USA can be done in several ways: starting without creating a company in the USA (through a simple website in English, for example), but using the services of an on-site representative capable of interact with local customers and suppliers on your behalf or even start building your business on the spot.

There are, therefore, several ways to consider starting a business in the United States.

To advise you on the appropriate strategy, a lawyer or firm specializing in commercial law and present on American soil is often the preferred partner.

Your role will be to advise you on the best implementation strategy and to write all appropriate legal documentation for your company, be it its statutes or its commercial contracts, in order to guide you through the various restrictions, laws and regulations that govern your activity at the levels federal and state.

Obtaining a work visa

Red Consulting success stories

To immigrate to the United States and set up your business there, you will need a visa.

In terms of immigration, American law provides for a multitude of work visas to which a foreign worker can apply: E-1 visas (“Trade” visa), E-2 (“investor” visa), L-1 (visa for “Intra-group transfer”) or H-1B (temporary work visa for skilled workers).

Each of them corresponds to a specific situation and has specific criteria to be met to be awarded.

For foreigners wishing to start a business in the United States, applying for E-1 and E-2 visas may be a good option, although these visas are more expensive than the L-1 visa.

For example, applying for an E-2 visa requires that the applicant invests or is about to invest a “sufficient” amount in a company in the United States.

It is the Department of State and Immigration Services (USCIS) that will determine, given the nature of the activity carried out, whether the investment is “sufficient”.

The financial obstacle that can constitute obtaining an E-1 or E-2 visa pushes an increasing number of foreign entrepreneurs to apply for an L-1 visa.

This visa is especially intended for foreign companies wishing to establish themselves in the United States, opening new facilities on American soil.

This visa is renewable every year for a maximum duration of 5 to 7 years, depending on the case.

After that period, the visa holder must leave the United States for at least one year before applying for a new visa.

Let us be clear: the conditions for obtaining a visa are complex and must respect strict formalism; that is why it is highly recommended that you be accompanied by a specialized company like Red Consulting, to maximize the chances of success in obtaining a visa.

Create your business in the USA

In the United States, there are four predominant social forms for women

companies:

Exclusive property

It is the appropriate social form for an independent entrepreneur or an independent worker.

Its advantage is that it offers a certain flexibility to the entrepreneur who is not obliged to register as a company.

However, to exercise certain regulated activities at the federal and / or state levels, he must have a certain authorization.

In addition, the income of the company and that of the owner are the same.

Therefore, taxation is made on that same income.

This is your real disadvantage.

The partnership

We choose this social form as soon as there are at least two owners

to operate the business.

With this status, for all shares of the company, each owner is responsible for their own funds.

Here, registration is required.

There are two forms of partnership: the General Partnership, in which the company is divided equally, and the Limited Partnership, which limits the control and liability of specified partners.

The Corporation

The Corporation is an appropriate form of corporation when you choose ownership.

Once you have shareholders, you can choose this social form.

Whether in terms of responsibilities or in terms of taxes, this business is separate from its owners. Only the company is legally responsible for its actions and debts.

And this is the advantage for the owners.

However, the company can be taxed twice; when to declare profit and when to distribute dividends.

The Corporation exists in two traditional forms: C Corp and S Corp.

In general, foreigners cannot be shareholders of an S Corp. Therefore, the available form is the C Corp, unless the foreign shareholder has a permanent resident visa.

LLC

It is a hybrid form of partnership between the partnership and the corporation.

Its advantage is that, on the one hand, it benefits from the partnership’s tax efficiency and operational flexibility and, on the other, from the Corporation’s limited liability.

The “Members” of the LLC can be, depending on the different States, individuals, companies, sole members (LLC of a person) or even other LLCs.

It should also be borne in mind that, in order to develop your business in the United States, you do not need to establish yourself physically.

You have the possibility to position yourself with a representative on site or even with a simple website respecting American standards.

Anticipate labor law issues

Labor law in the United States is very restrictive and requires serious consideration to avoid losing an obligation to your company.

In fact, the creation of a company on American soil and the hiring of local employees implies the accomplishment of a series of registrations with the tax administration and state and federal agencies and the hiring of several necessary insurance policies.

Each state has its own specificities in terms of labor law, so it is more than advisable to seek the services of a specialized company to assist you.

Protect your business relationships

In Brazil, two partners who wish to establish a commercial contract to supervise their employment relationships must comply with the provisions of the Civil Code and the Commercial Code to prepare this contract.

Therefore, the law imposes certain rules that a contract cannot violate under penalty of nullity.

On the other hand, in the USA, the situation is a little different, as American law is essentially an unwritten law, based on the different case law of the courts of each state.

In the event of a conflict between business partners, the manner in which the contract was drawn up will be decisive in deciding which of the partners is right.

This is one of the reasons why contracts subject to American law are generally much longer than contracts subject to Brazilian law, as it is necessary to provide for all possible cases.

As two business partners are free to include the clauses, they want in the commercial contract that binds them, it is essential that their commercial contracts are drawn up by a competent lawyer, so as not to place all responsibility on your company in the event of a dispute.

This reflection is valid for all commercial documentation: service contract, partnership contract, general conditions of sale or use, etc.

One last tip

Although it may seem very easy to establish a company in the United States, especially in comparison to Brazil, it is advisable to prepare in advance and obtain advice adapted to your situation.

A successful establishment on American soil will greatly simplify the launch of your business and increase your chances of success.

The faster your administrative implementation procedures are performed, the faster you can focus on your business.

Contrary to popular belief, starting your activity in the USA is not necessarily expensive, as long as you use qualified contacts, such as Red Consulting.

We have several successful cases, as pointed out in this text.

Look for us and realize your dream of undertaking in the United States.

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