We open a business in the USA, as well as New York and Los Angeles
How to open a business in the USA: specific directions + tax nuances + 5 differences between an American business and a Russian one + an overview of 4 options for starting a business in the USA + an algorithm for obtaining a business visa + a practical example of filling out documentation + 7 steps of starting a private business in America from scratch ...
It's not for nothing that the United States is one of the pillars of the world economy. Thanks to the adequate attitude of the state to the development of entrepreneurship and freedom of action, anyone can become a businessman in this country, regardless of their level of income.
Today we will tell you how to open a business in the USA for a foreigner + we will make an overview of profitable investment directions for 2021.
How to open a business in the USA for a non-resident: nuances + advantages and disadvantages of a niche
Just as China is considered to be a country of workers, so the United States is considered to be a state of entrepreneurs. According to statistics, in America every second citizen at least once tried to start as a private entrepreneur. Another thing is that 70% of ideas fail, but this does not cost Americans as much as in Russia and other post-Soviet countries.
The clarity of our words above will be confirmed by the table of pros and cons of doing business in the states.
Advantages Disadvantages Untouchable private property. If a person is able to document ownership of property, he can guarantee his business complete security. cruelty in competition. If you can't beat it, go away. Slogan in the style of American business. Competition can be traced here in everything, and everyone will be competitors - a neighbor on the staircase and a large corporation in a neighboring city. Do not forget about Internet sites, including. Private traders are the backbone of the economy. There are practically no state-owned companies in America. More than 90% are private traders. Even military development is undertaken by entrepreneurs. If the state is concerned with affairs, it is only the organization and support of tenders. domineering control. Competition can also be traced in the state control structures, therefore, in the event of a puncture, a number of companies will line up to fine the entrepreneur. Competition is a priority. Classical liberalism is the principles followed by the entire stream of Americans. Competition is perceived as a market engine even by entrepreneurs themselves. tart at a loss. If you want to take root in the market, do it below the price. Since the cost of goods / services in the country is already on the verge of a minimum margin, the first 2-4 months you will have to work at a disadvantage. Weak state control. If in Russia it is necessary to report on every step, then in America entrepreneurs are left to their own devices. There is no such thing as pressure from government agencies. The client's equity is not discussed. Even if he is actually wrong, the loss of 1 will lead to losses for the company, and this is unacceptable. Sellers in America are literally chasing the buyer, with an emphasis on high quality service. Ease of launch. Much easier even than an individual entrepreneur in Russia. And this applies to both small private owners and large corporations / holdings. The situation is similar with maintenance. The nuances with taxes are solved through the hiring of an accountant, because it is very problematic for a foreigner to understand all the intricacies of the US taxation system. Slowness kills. If you want to start in a new niche, you cannot delay, because after a couple of months the product may already turn out to be uncompetitive. Conditions for non-residents. The United States is trying to capture the elite of science, culture, business and other areas from around the world. It is not for nothing that top specialists prefer to leave the Russian Federation and move to America.
Take a good look at both sides of the US gold medal before you enter the market. For a foreigner, a positive decision is doubly more difficult to implement.
Specifics of business development in the USA
Important: all the conditions of US entrepreneurship go to hell when a person works under the "Innovation" scheme. According to the rules of the American market, every new high-tech product that has no analogues in the country automatically becomes a monopolist. Remember the same Facebook.
Now let's draw parallels between commercial activities within our country and within the United States of America. The exclusion of obvious corruption, high pressure from inspection bodies and government attacks on medium / small businesses are 3 elements by default. You won't see this in America.
Differences between business in the USA and business in Russia:
Starting a Business
Anyone can open a business in the United States. Foreign persons have been successfully conducting business on the territory of the United States for a long time. In order to open a business in the USA and successfully develop your business in this country, you need to know the following aspects:
- Business structuring from different points of view: tax and legal.
- Where is the best place to start a business in the United States.
- Complete planning and advice for business registration.
Your company can be registered in 3 types of organization:
- As a separate branch of an existing foreign company
- A separate independent company.
There are positive and negative aspects to these kinds of enterprise organizational methods. This also applies to the status of the owner and taxation. It should be added that you do not need to be a US citizen or have a residence permit to open your business in America. A company can even be registered via the Internet. But by opening his own business, its owner automatically receives a residence permit in the United States. Having received a Green Card or a business visa in the United States, you can apply for citizenship after 5 years.
There are 3 options for starting a business in the USA:
- Buy a franchise
- Purchase an existing business
- Starting your own business.
Loans for starting a business for foreign corporations are not issued.
Forms of business ownership
As in all countries of the world, in the United States there are several forms of their own business, production. And every type of ownership has its pros and cons. But do not forget that not all forms are suitable for foreign companies. In addition, opening a business in the United States is a separate issue, but a foreigner will not be able to work at his own enterprise. This is provided for by US law. So, the final verdict on the type of enterprise, its structure, location is taken on an individual basis, specifically for each enterprise. This takes place with the participation of tax advisors and lawyers.
- Private business. The easiest type of business in the USA. Simple performance reporting and uncomplicated requirements. You need a license for this form of organization, depending on the field of activity and from the state. When opening this type of company, registration in the United States is required in the states where the business is conducted. Such a business is not considered legal. The owner himself bears full responsibility for the activity, being responsible for everything with his own property.
- Corporation (two types). There are open and closed types. This is a legal entity separate from the owner. Business registration in the United States takes place under state law at the secretariat and receives its own federal number. To organize this production, a package of documents is required: statutory and corporate documents. The rules and requirements are stricter, and tax reporting is rather complex. There are a lot of nuances in the organization rules for such companies with the participation of foreigners.
- Partnership. It comes in several forms. Flexible reporting structure, hay harsh requirements, but also like a corporation registered with the state secretariat.
- Likeness LLP, LLC. A legal entity may have a different form of taxation: private, partnership, corporate. The tax payment form can be changed every 5 years.
Steps for starting a business
Why is it profitable for immigrants from Russia to trade in the States
You can trade in both retail and online stores. Remember that, unlike Russian private stores, American retail outlets are significantly outperformed by large corporations and can only generate minimal profit for the owner. Therefore, it is not recommended for newcomers to business to open private retail outlets and sell branded clothing and footwear, for them other types of small business may be more profitable.
Vending machines that specialize in a particular product. Despite the fact that a significant part of the market in this business belongs to large corporations, especially in terms of selling snacks, drinks, hygiene and products, any aspiring entrepreneur inspired by a fresh idea can succeed and build his network. Residents of the United States willingly buy various items through vending machines, so the flow of customers will be provided to you.
Small outlets located in entertainment complexes that specialize in the sale of souvenirs (scented soap and handmade candles) or small knick-knacks (jewelry, glasses and other accessories). Americans willingly buy all sorts of little things and spend their money on them.
Internet commerce provides a wide range of areas for business. Native Americans are very wary of foreigners, so try to make sure that someone who is fluent in English and speaks without an accent is responsible for receiving calls.
Fresh flowers. Americans buy bouquets of flowers not only as a gift for any holiday, they like to use flower arrangements to decorate the interior of homes and offices, as well as to decorate events and celebrations. The great demand for fresh flowers will allow a novice businessman to quickly develop his own business and get a good income.
The most demanded and cost-effective goods that are sold through online stores are:
Feed and other goods for animals - this category of goods has a constant considerable demand. Many consumers use subscription services for the products they need, if you offer such a service, you can quickly build up your own base of regular customers and receive a stable income.
Small gadgets and watches - as a rule, landing pages specialize in this group of products. The postal services in the United States are very efficient, they can deliver on the same day of order, so many Americans often shop online, they buy souvenirs and other knickknacks online. A correctly selected assortment of goods will be the key to the success of your landing project.
What business in the USA will be profitable
America is known to the world as a country of entrepreneurs. Trade has appeared here since the discovery of this continent. Today, business in the United States is a daily developing area, which is based on its own principles and laws that are different from other countries. One cannot argue with the fact that Americans succeed where other countries are only making plans. Let's try to figure out how small business in America differs from all other countries, and what you can do to succeed in its vastness.
Peculiarities of doing business in the American way
- number of owners - 1 or 2;
- staff - up to 500 people;
- assets - must not exceed $ 5 million;
- annual income - about $ 2 million.
At the same time, all small businesses are divided into three categories - the smallest businesses, small and intermediate. They differ in the number of employees involved:
- smallest - 1-24 people;
- small - 25-99;
- intermediate - 100-499.
If we talk about the peculiarities of doing business and the attitude of Americans to the very process of entrepreneurship, then immediately it is worth noting the following features:
- The main goal of creating a company for an American is the development of some unique idea, and not a banal intention to make money.
- Americans will never enter the entrepreneurial path if they do not have knowledge in this area.
- Often American entrepreneurs run their own businesses, already having experience in this area.
- Business development in this country is always accompanied by its support on the Internet, even when it comes to agriculture.
In addition, most businessmen prefer to use only their own savings to start their own business. Only 10% of start-up entrepreneurs apply for loans. At the same time, no one seeks to borrow more than 100 thousand dollars.
America is the birthplace of franchising, and therefore the Americans themselves are very fond of this form of business. Today in this country there are about 2 thousand franchisors and about 600 thousand of those who have already received a franchise. The conditions for opening such an enterprise are much more favorable than in Russia. For example, to open McDonald’s in America you will need only 100 thousand dollars, while in Russia such an idea will cost no less than 500 thousand of the same American dollars.
American Business Ideas
But important in this country is not only the question of how to organize, but rather even what to do. Small business in the USA is certainly built on American realities, and it is not a fact that its ideas will take root in Russia. So what is profitable to do in America?
Start your business in America from scratch and make money
The United States is developing according to the principles of a market economy. As in any other country with a market economy, the fundamental principle in the United States is free enterprise, which is regulated by the state. The degree of government intervention in the economy in the United States is less than in other countries. Therefore, we can talk about the economic model of the United States as the most liberal among other countries.
From the point of view of an entrepreneur, the main principle is making a profit, it does not matter, immediately or in the long term, but always - with a guarantee of income. Profit is a key element of any business. For every entrepreneur - and not only in the United States - it is a priority for any other mission.
American Capitalism: Myths and Reality
Russians' perceptions of American business are often based on outdated stereotypes and do not fully correspond to reality. The image of an entrepreneur who by any means profit from ordinary workers, which came from Soviet propaganda, is in the overwhelming majority of cases untrue. However, among many citizens of Russia, including among the media, such ideas still exist. A striking example is the situation with Detroit. When the city declared itself bankrupt due to the collapse of the auto business, the information in the Russian media was presented one-sidedly. Devastation, desolation and rampant crime were demonstrated. But there is another side of the coin: the auto business in Detroit has become unprofitable because it turned out to be more profitable to produce cars in other regions of the country, where the enterprises moved along with most of the employees. Most of those laid off did not become unemployed, but simply found a new employer. Only a small part of the people found themselves on the street.
Open your business in the USA
The American Dream
Judging from Hollywood movies, one can conclude that the ideal life for most Americans is not only their own home and their own car, but also their own enterprise. In fact, not every American wants to start a business. Researchers have determined that 7% of the economically active population can successfully conduct business.
In the US, 90% of the population is wage earners, and 10% is employers and small businesses. Family businesses play an important role in the American economy, accounting for roughly half of the US GDP, and 49% of those employed work in small businesses. This includes companies with up to 500 employees. In the United States, there is no concept of "medium business"; small businesses are considered to be rather large enterprises, sometimes with a very large turnover.