Setting up a company in the US is one step in creating a global brand or merely taking advantage of the U.S. banking system. Famous companies like Google, Apple, Facebook, Twitter, Uber and so many others were formed in America and expanded globally. Other companies started overseas, like Uniqlo, then became global brands after becoming successful in the US. We’re not saying your ambitions are equally as big, but if they are, having a U.S. entity is a good step forward.
According to the U.S. Chamber of Commerce, nearly six million Americans are employed by foreign investors who have a company in the United States. This amounts to a $400 billion annual payroll. Every year, thousands more non-residents establish a new business. The country welcomes this trend, recognizing that an influx of foreign businesses creates jobs for U.S. residents which improves the economy.
The U.S. “mantra” publicly recognizes the benefits of foreign business investments in the U.S. Our historical perspective has always been that the U.S. is “open for business.” To encourage foreign nationals to set up a company in the U.S., the U.S. provides tax benefits and governmental incentives. Businesses will also find access to new markets they do not have access to when doing business in their home country through International Treaties that the United States subscribes to, for example. Another benefit is that the U.S. economy is growth oriented, and as it grows, sales of products and demand for services increase.
The U.S. has an advanced higher education system – one of the best in the world — giving companies access to skilled workers they might not find in their home country. We also have a robust policy of allowing foreign nationals to study at U.S. institutions. If you are considering investing in or setting up a company in the U.S., there a number of reasons why you should go forward with your plan.
The favorable economic environment
America is often offering opportunities for foreign investors to purchase U.S. assets, including real estate, at lower prices than in their home country. In addition, in comparison to many other countries, the U.S. is still a wealthy one with over 320 million people in the U.S, many of whom are very consumer oriented. There is a wide diversity in income and interest levels and you will find a market in the U.S. whether you are selling computer parts, rain gutters, shoes or any other products or services.
Incentives offered by federal, state and local governments
Many states and some cities offer financial incentives to foreign investors who will establish their business in a specific location. Some incentives are in the form of tax credits and the country has recently lowered commercial real estate taxes for foreign investors. In addition, the U.S. government offers a myriad of assistance to U.S. businesses that will be available to you when you set up your U.S. business.
Your U.S. non-resident owned business gives you the same advantages and responsibilities as a resident owned business
All businesses in the U.S. are treated the same, whether foreign or domestically owned. This gives you the benefit of all the laws relevant to acquiring a business or transferring capital. It puts you on an equal standing with your opponent if there is ever a business dispute.
Access to new markets
All 50 states are interested in increasing the business environment and many cities encourage you to invest in their community. You have virtually unlimited choices for where to set up your business and can choose a geographical terrain and climate zone that suits you.
The U.S. has trade agreements with more than 20 countries which provides a marketing advantage to U.S. based manufacturing companies. This increases your market by 425 million people. Add this to the approximately 320 millions of Americans and you can see the potential for your business being successful.
Availability of skilled workers
The U.S. is home to 4,000 colleges and universities and more than eight hundred thousand foreign students go to school in America. There are community colleges and technical schools all committed to training students to enter the workforce at all levels. No matter what your business is, you will find hundreds of skilled workers just waiting for the opportunity you can offer them when you begin hiring workers for your new business.
Stable political environment
The United States has a stable political environment which, according to the well-known firm of Ernst and Young, makes it the “most attractive market for venture capital and private equity funding.” Of all countries involved in international trade, the World Bank ranked the U.S. fifth for its overall “ease of doing business.”
Movement of goods
If your business is manufacturing or selling goods, the U.S. provides efficient connections to the world-wide market through air, sea, rail and highway travel. The U.S. is home to seven of the top 10 cargo moving airports for efficient moving of goods.
Access to advanced technology, which the U.S. is known for, increases the desirability of the U.S. as a place to do business. Many foreign investors are starting companies in the U.S. just to have access to the advanced technological innovations which will enhance their business production and world-wide communication.
Protection of intellectual property
The U.S. leads the world in the way it protects intellectual property rights (IPR). The U.S. patent office receives approximately one million applications for patent or trademark protection. The office stringently enforces the law and provides you protection from infringement.
If you are a foreign national who is considering starting a business in the U.S., the advantages are on your side.
Now is the time to pursue your dream and begin the work of starting your U.S. based business.
There are no barriers to starting a small or a big business in the US and actually starting a small business through e-platforms requires very few formalities. For businesses that required the proprietor or manager of the business to be physically present in the USA, these options may be considered for being present legally:
Ø Getting an E-2 visa is a very popular option amongst non-residents to start a business in the USA. For obtaining an E-2 visa, the entrepreneur must be a citizen of an eligible nation (a country that is part of a Treaty of Friendship, Commerce, or Navigation with the US). Additionally, the entrepreneur applicant must have a controlling share in the US business where you have invested already or you are planning to invest capital.
Ø There are other options of availing a temporary visa in the USA and beginning a business. The F1-OPT (Optional Practical Training) visa, the H-1B Speciality Occupation Visa, or the O-1A Extraordinary Ability and Achievement Visa may be obtained by you as a visitor, student, temporary professional worker, or as a person with extraordinary skills and recognition in a field of work.
Ø There is another option which is gaining a “Green Card” status or permanent residence in the USA. It allows you to live and work in the US without any restrictions for as long as you wish, you can get your company registered.
Ø If you are in a position to invest $900,000 minimum, there is also a chance of obtaining a Green card by Investment in the USA through the EB-5 Business. This will work for all purposes like any other Green Card.
If you only wish to start a business and not be physically present in the U.S., there is no bar. You are not a citizen of the USA, you are allowed to start an entity or a business just as a US citizen is allowed to do so.
To start a business as a non-resident, as a non-citizen or even as a resident citizen of USA, you must obtain an EIN number by filing for it with the federal government. The EIN will then enable you to open a bank account and create a tax number.
Starting out in the U.S. “with nothing” is part of the historical lure of the American Dream. This concept is outdated, at best, because U.S. immigration laws have undergone a series of major transitions. The immigrants who succeed in the USA mostly arrive on student visas or skilled work visas with something in hand. Or they arrived in a U.S. culture that was much more receptive of immigrants and established to absorb immigrants into the culture, the old “American melting pot”. Thus, actually no immigrant actually comes to the U.S. with nothing. The borders are not as free and open as they used to be, and the standards of immigration are constantly being adjusted. The immigrants who arrive in the USA either have a skill, or they come to acquire a skill or they have money in hand or there may be family living in the U.S. as well as a support community
As the first step, you are required to plan for your business and make initial decisions such as deciding your domain. To incorporate any entity, you are first required to draw up the organizational documents. You are also required to formulate necessary agreements such as the Limited Liability Company Operating Agreement, Shareholder’s Agreement, Intellectual Property Agreement consisting of all the terms and conditions required to safeguard your business and property.
As a founder or owner of a new business, you are required to decide the state in which you wish to incorporate your business entity. In the USA, the corporations are governed and registered in accordance with the laws of States and not the federal law. Once the state is decided, the entity can be incorporated by filing with the state authority and paying the required fee. Depending on your needs, a proper corporate service company may also be hired.
Formation of a legal entity in the US is equivalent to creating a legal person. Thus, you’ll be required to comply with all the prevailing laws such as the export regulations, the Foreign Corrupt Practices Act (FCPA). The FCPA is a criminal law statute meant to punish bribe givers as well as intermediaries. The law applies to you even if you are not residing in the USA or even when you are not a citizen of the USA. The consequences which may arise after violating U.S. export regulations are scary and even involve criminal penalties, thus it is better to consult a lawyer from time to time.
The two entities you would be most likely to use to “incorporate” a business in the U.S. are the corporation and the LLC. The equity holders in a corporation are called shareholders or stockholders and the equity holders in an LLC are called members. From a non-tax perspective, the LLC is generally preferable because it is more flexible. For example, an LLC can have a board of directors and officers if that makes sense, but it can also be managed directly by its members.
The Victoria Law Group consists of competent and dependable attorneys and legal professionals who are highly knowledgeable in the field of real estate law. Our team of legal professionals has assisted several residential and commercial clients with various legal matters associated with real estate including but not limited to the preparation and revision of contracts, acquisition of properties, refinances, foreclosures, deeds-in-lieu of foreclosure, short sales, landlord tenant disputes, eminent domain, leasing as well as enforcements and evictions.
There is no case too complex for The Victoria Law Group to handle. We understand Miami Real Estate; we were built for Miami Real Estate. We know how important the real estate industry is to the global economy and we work hard to provide our clients with the best solution for all their legal needs.
Representation in our Real Estate Practice Area includes sales, leases, title insurance and other transactions in addition to structuring complex sale and acquisition agreements and negotiating and closing complex mortgage financing on behalf of lenders and developers.