What are the benefits of expanding into and doing business in the USA?

Of course, despite challenges, expansion into the US comes with a whole host of benefits that make the process worthwhile.

For one, America boasts one of the world’s biggest economies, providing unlimited market expansion and growth potential, perfect for a business eager to evolve in a thriving market.

The real driver? The US provides businesses with access to phenomenal talent, helping them grow and expand.

It’s fiercely competitive, wonderfully dynamic, and opens a world of opportunity like no other – If you can make it in the US, you can make it anywhere.

Do you need a physical entity to operate in the USA?

Choosing the appropriate business entity is crucial. Remember, the simplest setup may not be the most cost-effective in the long term. While establishing a branch office might initially seem like a quick way to get started in the United States, it can have significant implications.

A branch office is an extension of the parent company rather than a separate legal entity. In these cases, you’ll not only be subject to US taxes on your entire corporate income but also expose your existing business to potential liabilities and lawsuits.

Considering this scenario, most companies prefer setting up a subsidiary company. This serves as a distinct legal entity that provides protection to the parent company. It also allows for separate treatment of liabilities, taxation, and regulations if compliance is maintained.

The limited liability company (LLC) and the business corporation are the two most common entity types in the United States. While deliberating on the most suitable entity for your goals, it’s important to remember that advice applicable to US residents may not necessarily apply to non-US residents.

As a foreign national starting a business, special considerations affect several areas. These include tax rates, employee benefits, paperwork requirements, exit strategies, funding opportunities, ownership transfers, and more.