One of the most popular business destinations in the world is the USA. This is the reason why many Indian citizens are eager to set up businesses in the USA. But there are certain policies and protocols that need to be followed in order to set up a successful enterprise in the laissez-faire world.
The Chamber of Commerce states that 7.8 million Americans are employed by foreign investors who make up an annual payroll of USD 645 billion. The country’s administration recognizes this trend and welcomes the influx of foreign businesses that create jobs for US residents and improve the country’s economy.
US market entry methods:
The first thing to decide when entering the US market is what type of structure you want for your business. You need to select the type of unit that best suits you.
For foreigners looking to start a business in the US, the following two types of entities are recommended:
Corporation
If you want to set up a company to get funds from venture capitalists, angel investors, etc., then a C-corporation business idea would be a good option. This is because such entities are considered more professional by investors, bankers, suppliers, and employees as they are independent legal entities.
The compliance formalities of a C-corporation are more extensive than those of an LLC. You have to maintain books of accounts and follow other rules and regulations.
LLC
A Limited Liability Company (LLC) is the most adaptable corporate structure. It gives you tax benefits, liability limits, and legal protection for your personal assets. Additionally, a limited liability company (LLC) can choose whether to be taxed as an individual or as a corporation. They are commonly known as ‘pass-through’ entities. In simple terms, an LLC has the features of a partnership firm and a corporation and provides limited liability protection against claims and lawsuits.
Once you know which unit to make, the next thing you have to decide is where you want to install it. T