Why Should You Open a US-Registered Business?

7 Powerful Reasons to Open a US Business

Let's set the scene: you have a successful business in your home country that is finally looking to expand into the world's biggest market: the United States of America. You may think that, for efficiency's sake, you're better off just using your current company in your home country to sell your goods and services to the USA. After all, why go through the time and expense of opening a US-registered business if you don't even live there? However, by not doing so, you may be missing out on some great advantages for domestic registration, 7 of which we'll detail below:

  1. Top Legal Framework

In the course of opening and and operating a business, you essentially create and accumulate business assets. These assets can take many forms, including real estate, intellectual property and cash.

To this end, your company needs a legal framework (jurisdiction) that will be most beneficial to your company's day to day operations. By far, one of the incorporation jurisdictions in the world is the United States. In a country where there is rule of law, you can be sure that your assets will be safe, that there won't be a bank run and that the country won't erupt into a civil war.

If someone treats your business unfairly, you can confidently rely on the American legal protections. In this respect, the U.S. law enforcement and court systems shield your company registration, ownership, and management.

2. Avoiding the Offshore Company Stigma

The days of numbered Swiss bank accounts and suspect bankers in Caribbean countries is over. Now, with new anti-money laundering legislation put into effect, most people holding offshore companies now run into huge problems to open a bank account anywhere in the world.

In contrast, corporate America is certainly way more attractive than offshore company jurisdictions.

Moreover, American companies are generally renowned for being backed by a stable nation's administration, as mentioned above in point 1.

3. Americans Buy American

Americans usually prefer to deal with American companies, rather than any foreign companies. This is logical, as people buying from other people in their own country understand how the system generally works, and if something goes wrong, they could resolve a dispute at home, rather than somewhere abroad.

Certain US jurisdictions offer cheap, fast and confidential company incorporation, and can get your business up and running in less than a day.

Even if a foreign company somehow works, starting a company in the USA gives you a leg up. Americans are a proud bunch, and when possible, prefer to support their local economy and keep their money at home.

What some entrepreneurs choose to do is open a US-based company that is fully controlled by a foreign entity. In this case, when registering your US company, you will need to submit your foreign company's documentation to the US registered agent who is opening your company.

Remember that your submitted documents will need to be already translated into English prior to submission to the registered agent. If you need assistance with translating these documents, Idiomatic USA has ample experience with financial translations. You can ask for a free quote here.

American businesses can effect a due diligence on their counterparts in a state registrar of companies online.

4. Opening a US Bank Account

If you are a nonresident, then, without an American company, it’s virtually impossible for you to open a business bank account in the US.

The largest American banks normally refuse to open corporate accounts for foreign companies. That is due to bank compliance policies, such as FATCA. They usually require American company registration documents.

In order to open a US corporate bank account, you will need to take your new US company's Articles of Incorporation to the bank for their review prior to getting approval to open the account.


5. US Loans for American Companies

You may eventually need to borrow money from an American bank. In this case, the bank would certainly request your US business credit history. The bank policy may, for instance, require that an American company exists for a certain period of time.

With no US company registration, there would be no credit history at all. So, the sooner you incorporate your American company, the sooner you create your business credit history.

6. US Investment Only for American Company

As your business in the US grows, you may see the opportunity for raising capital and opening your company to investment groups. For this purpose, the American market is the most attractive for you to find business partners and investors. To finance your startup investment in the US, you need an American company registration again.

Again, this makes common sense. After all, how would they check a company overseas? Would you feel comfortable about such a due diligence?

7. US Immigration

Maybe you've finally decided to move to the US to see your business grow even more. In this case, your American company registration and US business immigration would help you along the way. Specifically, you may get a business visa or work visa. Having formed a US company, for instance, you may become a US treaty investor and get an E-2 visa (aka a US investor visa). Alternatively, you may qualify for an L-1 visa (aka intra-company transfer visa). Finally, you may get an EB-5 visa (aka investment green card in USA).

Idiomatic USA also can help with your document translations for USCIS immigration procedures.

Conclusion

As you can see, there are ample reasons for opening a US-registered company. With a bit of patience and some qualified advice, the process can be simple, gratifying and extremely beneficial in the long-term.