Non-US Residents: What You Need To Know To Set Up A Company
Are you thinking of starting up a business in the USA? Starting your entrepreneurship journey in a foreign land involves a number of legal considerations. Not only this, it needs proper planning, groundwork, and a complete idea about the issues including legal, financing, sales, marketing, human resources, and whatnot. Clearly, there are thousands of things that you need to work on.
However, starting a company in the USA as a non-resident is not as difficult as you might think. It is quite simple with a few steps and the help of a team skilled in immigration, import-export, and international tax.
We understand that this is the very beginning of your entrepreneurship journey and you probably do not know from where to start. But here’s a tip- the best plan, strong work ethics, and fulfilled immigration requirements will help you start a company in the US. So, if you want to know about the steps that can establish your business in a foreign land, have a glimpse!
Business Formation:
Do you have a formal business plan? If no, you significantly need one. Not forming a proper business plan is one of the most common mistakes that people make. While having a proper business plan, not only doubles the chances of the success of the new business but guarantees it.
In the USA, around 54,200 new ventures start every year. However, only five or six out of 10 manage to stay in the business, while after a few years four out of 10 are closed. A well-designed plan can help you to recognize the idea, product, services, competitors, funding, cost, potential customers, and most importantly the market needs in the USA. Before you start a new venture, ask yourself a few questions:
Green Card:
Once you are sorted with the step mentioned above, this is time to get a green card. A green card offers permanent residence in the USA. With a green card, you can live anywhere in the USA and set up your work or business without any restriction.
Plus, if you want to keep things flexible and only stay in the US for a specific time, seeking advice from an immigration consultant can save you a lot of trouble. According to the immigration experts at fl-ilc.com, an immigrant must know everything about all the complexities of the US immigration law. Additionally,
Getting your employment-based green card helps you to maintain your foreign citizenship. The experts such as https://usa-green-card.com/ say that you simply have to register and complete the five-step application process. And, once you have completed the process you have to take the necessary steps that an American citizen would take before starting the business which includes: Employer Identification Number
As already mentioned, you need to set up a US business account. Getting an Employer Identification Number is a necessary step that will help you to open a bank account, pay taxes, hire workers. For this, you can simply visit the IRS website and fill out the EIN form. But before, you apply for the same, make sure that you have the Taxpayer Identification Number from the agency. You need to produce it while applying for an EIN online. This is the processing number that enables the people to pay the taxes without the U.S. Social Security Number (SSN).
Identify the demand for the product/service:
There are around 580 million entrepreneurs in the world. And, approximately 23.5% of the new ventures fail within the first year. The reason for this is that there’s no market need for their services and products. Research done by the CBInsights showed that approximately 40% of businesses collapse for this simple reason. Therefore, we suggest you do research on the demand for your product and services in the US and know the data and facts. Ideally, every sale should give you a profit of 50-60%. Only then you will be capable of hiring new players in your business.
Understanding the US taxes: Lastly, before you set a US company, you should know about the US taxes. After your business is established, you need to pay an annual fee to the state. The IRS i.e the US Internal Revenue Service will levy tax on any income that you generate in the states.
Following the steps and procedures mentioned above will not only help you establish a new business in the US but also expand its international operations. It is found out that in most cases, the non-US residents and foreigners set up a business as a domestic corporation, as the non-domestic business is required to pay heavy duties and fees on the product it imports.
And most importantly, do not forget to consult the experts on tax law and immigration requirements.
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