What Are the Advantages of Opening a Business in the US?

The United States of America is the largest economy in the world. Companies based in the US are perceived as more reputable.

If you use an offshore company registered in a tax haven like Seychelles or Bermuda, your European clients may have trouble accepting your invoices or conducting financial transactions with you, as transactions with offshore companies are often closely scrutinized by European tax authorities.

However, if you use a US-based company to issue invoices to your clients, you won?t face this issue. Clients won?t think twice about accepting your invoice because the US is not typically known as a tax haven.

Acess to the US Market

As we all know, the US consumer market is the largest and most profitable in the world.

The US has a GDP of $20 trillion and 325 million people with the highest household spending globally, accounting for over a quarter of the world?s domestic consumption.

With a US-based company, you gain easy access and the ability to sell directly to the US market without intermediaries. Not to mention, American consumers prefer buying from a US-based company rather than one headquartered in another country.

Acess to US Capital

The US is also home to the most respected venture capital firms in the world; there are more LLCs and businesses in the investment sector here than in other countries.

If you have an exciting startup idea, it?s better to open a company in the United States and approach US investors.

However, forming a C Corporation would negate the tax advantage mentioned earlier. Therefore, it?s important to evaluate your situation and decide whether to form a corporation or register an LLC.

Excellent Banking Sistem

Don?t get us wrong, the US banking system isn?t perfect, but it offers many advantages.

For example, banking fees are low, the US dollar is a stable currency accepted almost everywhere, and US bank accounts are insured up to $250,000 by the US government?more than in most European and other first-world countries.

US banks also offer more perks and bonuses for US credit cardholders compared to credit cards offered by banks in other countries.

Not to mention, you can easily buy and sell cryptocurrencies with US dollars using a US bank account.

Payment Processors and Credit Facilities

There?s no shortage of payment processing options in the US. Virtually every option you?ve heard of is readily available.

You can use Stripe, Shopify Payments, PayPal, and even high-risk payment processors with your US LLC.

One of the most popular payment processors for US LLCs owned by non-residents is Stripe.

With a US LLC and Stripe, you can quickly start an online business, even if Stripe isn?t available in your country.

Even if your country supports Stripe, you should consider a US-based Stripe account because it offers faster payouts?in just 2 business days. If you urgently need cash, you can even request an instant payout, which only requires a 1% processing fee.

Faster payouts inevitably improve your cash flow while managing your online business. Compare this to a Brazilian Stripe account, which takes 30 days, or a Singapore Stripe account, which takes 7 days.

Perhaps the most important feature that distinguishes a US-based Stripe account from accounts in other countries is access to Stripe Capital, Stripe?s subsidiary that offers loans based on your previous performance history.

You can qualify for Stripe loans even without a credit history, as long as you have a US-registered company and a steady revenue stream over the past few months.

Not IVA or GST

If you run an online business, it?s inevitable that you?ll need to market your products or services through paid advertising at some point, depending on your company?s growth.

The good news is that if you?re advertising with a company registered in Delaware or Wyoming, you won?t need to pay sales tax, VAT, or GST for every dollar you spend on Facebook, Google, or TikTok ads.

In contrast, you?d pay 18% GST with an Indian company, 6% with a Chinese company, 7% with a Singaporean company, or 23% with a UK company if you?re not VAT-registered. If you?re not VAT-registered in the UK, you can?t reverse-charge VAT and must pay 23% on Ireland?s VAT fees.

Low Setup and Maintenance Fees

Believe it or not, if you choose the right state, the US is one of the few countries where registration and renewal are affordable.

The process is quick and easy, and you don?t need to be physically present in the US. There?s also no need for a lawyer, local director, or corporate secretary, which would otherwise incur high fees.

For example, the fee to register an LLC in Wyoming is just $100. Compare this to Italy, where total fees can easily exceed ?2,000.

Finally, dissolving a company is as easy as incorporating one. If your business isn?t doing well in the US, you can simply dissolve it. Closing your business can cost less than $100 in some states.

Easy Annual Compliance

It?s important to note that, as a business, some countries require significant time and effort for annual compliance.

Some countries even require you to have your books audited by a certified public accountant every year, no matter how small your business is.

Fortunately, if you register a US-based company, everything is straightforward. It can be 100% foreign-owned.

And if you register a US LLC, all you need to do is pay the annual reporting fee, the annual Registered Agent service fee, and file Form 5472 if you have no federal tax obligations.

Conclusion

Overall, the US is the best option for any foreigner looking to start a business.

The fees are low, the process is easy, there?s a wide range of payment processing alternatives, and access to capital is abundant.

We hope we?ve convinced you by now that the US is the best choice.