Advantages of USA Business Setup:

• Straightforward business setup: An American LLC can be incorporated in one day in many states. Only one shareholder and one director are needed, of any nationality, with no minimum paid-up share capital. Clients need not travel to complete company setup, and a foreign-owned USA company can legally purchase property, assets, and securities.
• Tax advantages and incentives: Non-US citizens or non-residents providing services or manufacturing outside the USA are legally exempt from USA corporate and personal income tax. LLCs are taxed as partnerships by default, with profits and losses passing through to owners’ personal tax returns. S-Corp elections can provide tax transparency. The USA has nearly 300 free zones offering exemptions on re-export duty, deferred import duties, and state inventory taxes for exports. Low-tax states like Delaware, Texas, or Nevada allow zero state taxes for companies not operating within those states. The USA has 68 double taxation agreements, reducing withholding taxes and aiding market access.
• Government incentives: The Small Business Administration offers loans up to US$5 million and guarantees 25% of government contracts for beneficial companies. Grants and tax incentives support job creation and strategic sectors like green energy, education, health, technology, and real estate, with over $500 billion granted annually. Deductions lower the effective corporate tax rate from 35% to about 15%, with over $1 trillion in deductions granted yearly.
• Economic strength: The USA is the world’s largest economy with a GDP of US$21 trillion, accounting for a quarter of global trade and a consumer market spending US$11.9 trillion annually. It ranks second in global competitiveness for business dynamism, innovation, market size, and financial systems. The shale gas revolution supports energy independence, boosting GDP and job creation.
• Financial and manufacturing hub: The USA has the world’s deepest financial markets, with business loans at 6-7% interest rates and access to the largest IPO listings. It’s the second-largest manufacturing hub, focusing on high-value outputs like aircraft, turbines, computers, and robotics, contributing 19% to GDP. Low energy costs (10.3 cents per kWh) and a productive workforce (US$67 output per hour) support manufacturing. Extensive trade networks and free trade agreements with over 20 countries, plus ongoing negotiations like the Trans-Pacific Partnership, enhance market access.
• Innovation and entrepreneurship: The USA fosters a culture of innovation, particularly in Silicon Valley for tech startups, supported by proximity to companies like Google, Apple, and top universities. Major cities like Houston, Detroit, New York, Seattle, Los Angeles, and Chicago drive innovation in energy, automobiles, finance, aerospace, entertainment, and agriculture.
• Investor protection: A robust regulatory environment ensures strong investor protection, enhancing business confidence.

Disadvantages of USA Business Setup:

• Trade war with China: Since 2018, higher tariffs on Chinese imports increase costs for US companies, and restricted access to the Chinese market limits export opportunities.
• Economic impact of COVID-19: The 2020 economic contraction of 9.5% and 7.9% unemployment rate increase retraining costs and economic uncertainty, despite potential benefits from available labor.
• High labor costs: High-skilled workers earn an average of US$6,000 monthly, including benefits, and strict hiring/firing laws make low-end manufacturing uncompetitive compared to countries like China or Mexico.
• Complex multi-state operations: Incorporation and tax compliance vary by state, requiring separate registrations for each state of operation, increasing administrative burdens.
• Tax complexity: Federal, state, and municipal taxes, a complex tax code, and the lack of participation exemption for foreign subsidiary income (taxed at 35%) create high compliance costs. Multi-state income requires multiple tax filings.
• High litigation costs: With 15 million civil lawsuits annually valued at US$251 billion, legal fees are significant, and the US system does not recover costs from losing parties, necessitating liability insurance.
• Regulatory complexity: Inconsistent state regulations and complex tariff/import duty calculations, combined with cumbersome customs processes, increase operational costs.
• Competitive market: High competition leads to a 50% failure rate for companies within five years, especially in capital-intensive sectors like agriculture and manufacturing, dominated by large corporations.
• Short-term focus: The US business culture prioritizes short-term results over long-term strategies, potentially misaligning with some business goals.
• Corruption and judicial challenges: The USA ranks 17th globally in contract enforcement and 15th in judicial process quality in New York, below OECD averages, indicating potential governance issues.

Typical USA engagement steps

• Client settles Healy Consultants Group’s US engagement fee, signs and returns the engagement letter, and provides due diligence documents for each stakeholder.
• Our experts outline available corporate structures, recommending the optimal setup based on tax optimization, company law, and the Client’s business plan.
• Healy Consultants Group prepares a detailed project plan for engagement completion, ensuring transparency and setting expectations.
• After determining the corporate structure, we prepare incorporation forms for Client signature and return.
• We check the availability of preferred company names and reserve the most preferred with the respective Secretary of State.
• We incorporate the company in the chosen US jurisdiction (e.g., Delaware, Texas, Nevada, Wyoming), providing the Client with the public profile and certificate of incorporation, and register for a federal EIN.
• The Certificate of Incorporation is received from the Department of State and forwarded to the Client.
• If required (e.g., in New York), we publish a six-week formation announcement in local newspapers.
• Our banking team completes corporate bank account opening, including multi-currency internet banking facilities, arranging where possible to avoid Client travel.
• Client deposits the proposed share capital post-account opening.
• If necessary, we register the company for unemployment insurance, workers’ compensation, and disability insurance in each state of operation.
• Upon completion, we courier a company kit to the Client, including original corporate documents, unopened bank correspondence, and a feedback survey.

Typical USA engagement timeline

• Engagement Planning: 1 week
• Company incorporation: 1 week
• Corporate bank account approval: 3 weeks
• Corporate internet banking approval: 3 weeks
• Engagement completion: 1 week
• Total: 9 weeks

Opening a corporate bank account in the USA

• The USA hosts top-tier international banks. Clients typically need to travel to meet bank officers and submit applications, with stringent checks applied.
• Healy Consultants Group can accompany Clients to bank meetings.
• Required documents include: photo ID and proof of address for the director, articles of incorporation, Federal EIN, and proof of business address.

USA accounting & tax considerations

• Corporate tax: 21%
• VAT: 10%
• Personal income tax: 10-37%
• Filing date for corporate tax returns: 15 July

USA visas

• Permanent residence visa: For Clients investing US$500,000 (in rural/high unemployment areas) or US$1 million, creating 10 full-time jobs within two years.
• Temporary residence visa: For trading activities or incorporating a company with at least 50% ownership, available for treaty country nationals.
• Employment visa: For specialist occupations or employees transferred to a US-affiliated office.

How to register an offshore company in the USA?

An offshore company can be registered as an LLC in a low-tax state like Delaware or Nevada, with no requirement to operate within the state to benefit from tax exemptions.

What are the types of business entities suitable for a non-resident in the USA?

The most suitable entity depends on the entrepreneur’s profession, business nature, and number of owners. LLCs are preferred for non-residents due to simple setup, no capital restrictions, and pass-through profit distributions.

Is a visa required for foreigners to register a business in the USA?

A visa is not required to register a business, but a valid residence permit is needed to stay and operate the business in the USA.

What are the document requirements to register an LLC in the USA?

Documents include: business name reservation form, articles of organization, operating agreement, minutes of the meeting, and board resolutions.

Do foreign companies not incorporated in the USA need an EIN to do business within the USA?

Foreign companies paying taxes or claiming deductions via tax treaties must obtain an EIN from the IRS.

What is the tax on an LLC in the USA?

LLC taxation depends on the tax class and number of members. An LLC taxed as a corporation may face an average tax rate of 27.1%.

Can US companies do business with Iran?

No, US sanctions prohibit businesses from engaging with Iran-based entities.

How to find a USA company registration number?

Each state’s online portal provides the current status of registered entities.

Can a US company do business in Canada?

Yes, subject to Canadian taxation unless exempted by a treaty.

Can any US company sponsor an H1B visa?

Any US company with a valid IRS tax number can sponsor an H1B visa for temporary foreign workers.

Does the US use GAAP or IFRS as its accounting standards?

Domestic public companies use GAAP; foreign companies may use IFRS.

How to decide upon the State for incorporating a company in the USA?

For nationwide operations, incorporate in low-tax states like Delaware or Nevada. Otherwise, choose the state where the business will operate.

How much does it cost to register a company in the USA?

Healy Consultants Group’s estimated fee for LLC setup is US$9,000, covering formation, registered agent services, EIN registration, and bank account opening.

Do businesses get tax incentives for doing business in America?

State and local governments offer tax credits and incentives to attract foreign investment, detailed at businessfacilities.com.

Why did the US impose tariffs on China?

Tariffs were imposed to address China’s unfair trade practices, sparking a trade war with retaliatory duties on US imports to China. Alternative manufacturing locations are recommended.

Does the US have free trade zones?

Yes, over 290 free trade zones exist across all 50 states, including Texas, Louisiana, South Carolina, and Puerto Rico.

What are the available types of work visas for USA companies willing to hire foreigners?

There are 11 types of temporary work visas available for foreign workers.

What are the business visas available in the USA?

Options include the EB-5 visa (Green Card for Entrepreneurs) and E-1 visa (treaty investor visa for treaty country nationals).

Is the USA a good choice to start a cryptocurrency business?

Yes, Nevada and Delaware are ideal due to their crypto-friendly ecosystems, low taxes, and legal receptiveness to crypto startups.