USA is the largest consumer market in the world and has a open economy which is like an invitation to all the businesses operating globally to tap the humongous US consumer base. USA is a possible market for nearly all sorts of goods and services which can be easily operated remotely, no matter where you are in the world. One can get an easy US market access through their own business in US. For e-commerce players they get multiple marketplaces like Amazon USA, Ebay USA, Etsy, Sears, iOffer etc to list and sell their products or can also start their own e-commerce website or a dropship store.
- Worlds largest market : US is the worlds largest economy offering the largest consumer market on earth with a GDP of $20 trillion and 325 million people. Household spending is the highest in the world, accounting for nearly a third of global household consumption. The American market for almost everything is huge. Infact a large share of global business just revolves around the US economy.
- Immense Purchasing power : US has a highly developed market economy and has one of the world’s highest percentage of millionaires. A robust business environment and being a high wage country, all this sums to that there are a lot of people spending money, and that creates great conditions for business helping them to get success. Also, being a country with one of the most dynamic population, the appetite for new and innovative products is huge. Being a high wage country, the standard of living is also considerable high which is also a perfect environment for businesses to thrive.
- Rule of law and a robust economy :As a stable democracy with a transparent and predictable legal system, the United States treats foreign and domestic firms equally under the law. The legal system in US ensures that everyone respects the law and follows it like an honest being. Further, US enjoys a strong political stability and is one of the best countries when it comes to enforcing contracts. US is a developed and advanced economy with abundance resources and all this makes it a very robust and well managed economy.
- Ease of doing business : US has one of the simple, predictable and transparent legal system. States like Wyoming, Delaware and Nevada with their business friendly laws and low taxes avoid breathing room for new businesses and startups. Federal income tax rates are also pretty rational and allow businesses to grow. All foreign-sourced income is tax exempt which means its easy to serve other markets from US business itself. US has free trade agreements with 20 other countries which means that exporting goods from US is easy and does not involve heavy duties and taxes levy. All this translates into providing access to millions of people situated not just in US but in other countries as well from just one location.
- Double Taxation Avoidance Agreements : US has signed Double Taxation Avoidance Agreement (DTAA) with almost every major country in the world. These agreements are designed to ensure that economic transactions between US and the treaty country do not suffer from double taxation. The key benefits of a DTAA are a) the avoidance of double taxes, b) lower withholding taxes, and c) preferential tax regime, all of which play an important role in minimizing the tax burden for a business.
- Support for Startups : The U.S. provides start-up support through entrepreneurial ecosystems featuring next-generation businesses, working spaces, venture capital, educational institutions, and designated spaces. The United States is a recognized leader in research and development (R&D), and registers more international patents than any other country. Companies of all sizes help make innovation in the United States a global enterprise, benefiting from – and contributing to – a flourishing ecosystem for invention and inspiration. From large research and technology parks to smaller-scale incubators, the United States offers resources to help innovators create, take risks, and succeed. Startup accelerators are fixed-term programs that take groups of entrepreneurs, match them with a wide range of mentors, and offer training and educational programs. Each session ends with a “demo day” where startups pitch their offerings to investors.
- Highly skilled, productive workforce : The United States isn’t only home to one of the most productive, talented workforces in the world, it prides itself on workforce development programs and technological innovations that directly impact labor skill requirements. The advanced and innovative business and work environment attracts skilled workforce from abroad.
- No restrictions on repatriation of profits or import of capital : There are no restrictions on the amount of capital that you can bring from abroad to invest in your US company and further there are no restrictions on the repatriation of profits.
- Access to capital : If you require an investment for your company then there are several ways to get access to easy capital at any stage of development beginning from government grants, accelerators, incubators, Venture Capitals, banks and financial institutions. The United States has the most developed and liquid financial markets in the world, providing companies with access to extensive financing options and funding mechanisms.
- Professional Image : A US business generates a positive perception and signals professionalism to your customers, partners and suppliers. The positive image of a US business is not just hold good domestically but even for international business opportunities. Even businesses in other countries would be willing to do business with your US based company.
Form of Business Entities
The most common form of business entity in US is a Limited Liability Corporation (LLC). Other form of entities that can be formed include a sole proprietorship, partnership, single member or multiple member Limited Liability Corporation (LLC), Business corporation (C-Corp and S-Corp), subsidiary company and a branch office.
The minimum requirement for incorporating a Company is as below:
- 1 member/director (Could be a resident or a non-resident);
- A Local address to be used as Registered Office address.
The annual compliance requirements are very low and simple.
Incorporation for US residents/citizens
A US resident has options to incorporate a business entity as a sole proprietorship, partnership, single member or multiple member Limited Liability Corporation (LLC), Business corporation (C-Corp and S-Corp). Since they are US residents then they would not require us to provide them with an address proof but, if desired, we can provide a suitable business address of a particular business district to act as a registered office address for the company.
Incorporation for Non-Residents
Non-US residents who intend to carry on business in United States can choose to operate the company remotely. A US company is easy to form and doesn’t take much time. A Non resident can either incorporate a LLC, wholly owned subsidiary company or a branch office.in United States. A subsidiary company is a locally incorporated LLC or a Business corporation and the majority shareholder is another local or foreign company. Once incorporated we will get an Employer Identification Number (EIN) for your company and then get a Business bank account/ Merchant account for your business which would be 100% owned and operated by you.
Their is no other requirement to incorporate a business entity in US which is why US is one of the most sought destination for business setup for majority of non residents. Further, one of the concerns of a non-resident individual is to ensure that they get the right guidance while setting up a business in a foreign country and also the compliances and taxes are duly taken care of in the most genuine manner. We provide with all that assistance and if desired, will even guide you during the initial phase of your business startup in US. In case of any doubt, we will help you transact your business in a perfect manner which will help you get the maximum benefit and that will also help you mitigate cost.
We provide a full suite of services to get your company legal requirements including providing CPA services, Registered Address, Business permits, licenses and approvals as required.
A number of individuals and business enterprises sell in bulk quantity to other foreign entities/ businesses and then these foreign entities/ businesses sell the same merchandise for prices which are 3-4 times the value initially paid. We provide you an alternative method where you cut the middleman and reach the consumer directly. We are the only service providers who provide a turnkey solution for e-commerce business in United States (registering business, acquiring business permits, US bank account, US payment gateways and warehouse fulfillment centres in USA). In a nutshell, from registering in United States to selling in United States and thereafter providing compliance support, we do it all.