Are you planning to expand your business to the USA? Well, you’re not alone. In our line of work, we’ve helped many foreign entrepreneurs establish successful businesses in various parts of the States.
According to the US Bureau of Economic Analysis, foreign-owned companies employed 6.8 million American workers in 2015, accounting for 5.5 percent of employment in the US private sector.
You don’t necessarily have to be a citizen or even live in the country to start a US business. And with the right guidance, it’s quite easy to set up the logistics of running a foreign business. If you're unsure about expanding to the US, here are five reasons to convince you it’s a good idea:
The US has 50 states stretching across most of North America and is home to more than 330 million people. The large and rather dense population (36 per Km2) creates a huge, diverse market of mixed demographics. Expanding a business to the US allows you to target and tap into this vast marketplace.
The US has the world's largest economy. In 2019, the county's Gross Domestic Product per capita was recorded at $55,809, translating to 442 percent of the world average. Years of peace and political stability and a progressive social culture are responsible for the thriving economy.
On top of that, the US is home to a wide range of well-established commercial industries, including manufacturing, finance, transport, tech, education, and energy. With already defined commercial infrastructures, the US has no shortage of business opportunities in every trade sector.
Before venturing into a new business territory, it’s important to find out just how business-friendly the region is. In this case, we're glad to point out that the US market indeed favors foreign traders.
For one, the US is well-connected to other world-class economies such as the UK, China, India, and Japan through commercial and diplomatic ties. That means you don't have to jump through hoops to expand business to the USAfrom other countries. Second, operational logistics, such as e-commerce, retail, supply chains, and marketing, are relatively easy to deal with, thanks to the proliferation of advanced technology and essential infrastructure coverage throughout the country.
The American population is a rich market for skilled and semi-skilled labor. Every year, thousands of Americans graduate from universities, technical institutes, and tertiary colleges equipped with in-demand skills and ready for the job market. The US education system is well known for producing some of the sharpest minds in various professions.
Regardless of your niche, you’ll find ready candidates looking to fill any available job positions. Finding the right hires will not be a problem, as long as your business abides by US labor laws and meets employee welfare and safety standards.
The US government welcomes and, in fact, encourages foreign investors into the country. The federal and state governments create incentive packages to attract foreign investors in order to create new job opportunities for local residents and boost the economy. The awardable incentives depend on the nature and size of the business, its location, and its economic impact. These rewards range from grants, loans, aggregable terms, and tax credits to subsidies. So, all the more reasons to expand your business to the US.
The US is undoubtedly pro foreign businesses. If you’re thinking of expanding your enterprise across international borders, the US is a prime market with a welcoming, business-friendly atmosphere. The country is filled with endless opportunities for ambitious entrepreneurs, no matter how big or small.
Setting up and running a business in the US can be easy, especially if you have a helping hand to guide you through all tedious paperwork and technical hurdles. At Accountants Without Borders, we help foreign entrepreneurs start and run businesses in the US. We are based in San Diego, but our reach is global. Get in touch with us to learn how we can help you get started on your U.S-based enterprise.