Tips and Reasons for Start a Company in the United States

Tips and Reasons for Start a Company in the United States

Most often, Amazon entrepreneurs, founders of startups, and IT companies think about opening a company in the United States. There can be many reasons why different entrepreneurs consider starting a business in the United States, however, we suggest considering the main ones, which can be applied to any of the above types of customers.

The United States ranks 6th in the World Bank’s Doing Business rankings, but it’s not just the ease of doing business that attracts entrepreneurs to the United States. A sound legal system, no corruption, and affordable credit are far from a complete list of the benefits of doing business in the United States.

1. Security

A fairly common reason for registering a company abroad is business security. Given the peculiarities of doing business in most other countries, we are well aware that a business that is actively developing, growing both in terms of customer base and profit, may be subject to various problems associated with unfair competition. This can be expressed in completely different ways, starting from black PR and ending with the close attention of regulatory authorities.

Using a foreign company, including an American one, you will work according to the legislation of the country of registration of the company. Which minimizes the possibility of unfair competition.

2. Ability to remotely open and manage the company

If we talk about a company in the United States, an important advantage of such a company is the ability to remotely register and manage such a company.

Registering a company in the corporate registry does not require your US presence. Filing tax returns can also take place without your personal presence in the country. However, you will need to be present in the United States at least once to open a bank account.

There are offers on the market that can allegedly open a bank account without your presence in the United States. We would like to warn against the use of such methods. Several years ago, American bank accounts were opened in a similar way. However, over time, it turned out that these accounts were opened in violation of banking rules and US law. Bank employees noted in the documents that there was a meeting with the client, but, in fact, such a meeting was not held. Moreover, many clients did not even have a visa to the United States. As a result, most bank accounts that were opened in this way were frozen or closed altogether.

3. The possibility of opening branches in Europe

Theoretically, opening an American company, you get the opportunity to create a branch in Europe. However, given our experience in supporting American companies operating in the European Union, it is much easier and more profitable to open a separate company in the EU.

Thus, you will be able to choose the jurisdiction that will offer the best conditions for your business, that is, you will be able to make full use of special tax regimes or exemptions. Also, it is possible, subject to certain conditions, to make settlements between these companies, and use them for tax planning.

The advantages of registering a new company in Europe, instead of opening a branch in the United States, include a simpler procedure for registration as a VAT payer.

4. Prestige and reputation

Sometimes reputational issues can cause a company to register in the United States. For example, you open a company in the United States and register the rights to intellectual property. For example, trademarks or patents. Next, you use the relevant intellectual property in your business, and you can indicate that the work is based on American developments or technologies.

Let’s say you are a developer of some software, in which case, in the eyes of the buyer or user, it will be more advantageous for an American company to look like a developer than a company from Eastern Europe.

5. Access to cheap loans

An important advantage of the company in the United States is the ability to obtain loans from banks on terms that will be many times more favorable than those that can be expected in the Eastern European countries.

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