Incorporating Into the United States: Can Foreigners Open a Business?
Apart from exhibiting good business performance, creating brand awareness and a better brand reputation in the international space is priceless. The United States is a prominent country in terms of economic competitiveness, incorporating into the United States will enhance your credibility and give you much-needed recognition.
Not to mention the fact that many customers and other business stakeholders perceive incorporated businesses as more credible, legitimate, and stable than those not incorporated. Consequently, many reputable organizations are willing to partner with you.
As a reputable investor, you may be contemplating opening a business in the United States. Many savvy investors want to expand their wings into the US markets due to the ease of doing business in the country and the benefits and support it offers to the corporate community. Incorporating a new business in the United States will certainly drive you more business and produce an impeccable return on investment (ROI). The United States is well known for being an ideal investment destination for many foreign investors around the globe. This guide discusses the reasons why the United States is a great business and investment hub for incorporation. Read on to find out the many benefits of incorporating into the United States.
International Brand Reputation When Incorporating Into the United States
The US has a pro-business climate that attracts numerous investors around the globe. In fact, many states in the country provide incentives and offer tax exemptions to their businesses to promote corporate investment. Other than having business-friendly laws and regulations, note that the US places all investors on nearly the same legal footing.
In other words, when you incorporate your business in the US, you're guaranteed to receive some tax benefits, such as the room to spread or extend your liability and losses over a longer period. Or even the ability to deduct employee benefits. However, before claiming any tax deductions, it's important to seek the services of an international tax expert who understands well the US tax laws and regulations.
Protection Against Your Personal Assets When Incorporating Into the United States
One of the best parts of incorporating a new business in the US is the fact that your personal property is protected against business actions. Let's admit it; businesses sometimes fail or at least stagger. However, when you incorporate your business in America, it becomes a separate legal entity accountable for its own debts. This means that your personal assets, such as savings or properties, are free from the risk of creditors and collection agencies when it comes to debt collection.
If you haven't incorporated your business, your personal assets will be automatically linked to your business dealings. Thus, exposing them to such risks. It even exposes you and your family to litigation risks. Further, it goes without saying that many incorporated businesses tend to go into partnerships and collaborations with other entities. Thus, they share both the profits and risks involved.
When you incorporate into the United States, you will be making it easier for your business to raise capital for running its operations. Other than equity capital, you issue shares and, most importantly, apply for bank loans faster. This gives you a lending advantage as you apply for loans for easy approval.
When you incorporate your business in the US, you not only expand into the corporate space but also extend your consumer reach. With its rich population of over 300 million people, the US is currently the largest consumer market in the world. Household spending in the country has also regularly been ranked among the best globally.
On top of the new markets, the US also has a large pool of talent, infrastructure, and innovative enterprises. Thus, making it ideal for businesses of any kind to flourish. Also, the US has free trade agreements with various countries worldwide. It is, therefore, sensible to incorporate your business in the United States.
Ease of Ownership Transfer
When you incorporate your business, it becomes its own legal entity or corporation, meaning that ownership is likely to be in the form of shareholding or stockholding. For this reason, it becomes easier to transfer ownership even when faced with urgent situations like acute illnesses.
Put simply, transferring shares, funds, or ownership of an incorporated business is a lot easier and flawless in the US. And on top of that, by incorporating the business, it will enjoy a perpetual existence since it is its legal entity. So, no matter any misfortunes that may befall the business stakeholders (except for a closure, dissolution, or liquidation), the business will remain operational.
Learn More About Incorporating Into the United States
While some business owners and investors tend to be afraid to incorporate, businesses benefit from incorporating. This is especially true when your business has outgrown or established itself. Incorporation means that you will expand and continue to grow your business into foreign markets. And when your business grows, it means more revenue flowing into your business.
If you're ready to expand into the international markets, open a new business in the US. Consider incorporating your new business in the US to reap the many benefits that justify incorporation in the US. At H&CO, we have the expertise and experience to successfully establish or incorporate a new business in the United States. Feel free to contact us today to see how we can help you!