Making the decision to expand your business to the U.S. can be a daunting task if you are not familiar with the process, but with the right knowledge and assistance you will find that starting a business in the U.S. might actually be easier than in your home country. After you’ve written up a business plan, received business assistance and funding, and chosen a specific location in the U.S. to expand your company, many business owners then ask the question, “What’s next?” Below are 6 legal steps straight from the U.S. Small Business Administration that you’ll need to complete before establishing your business to the U.S. market:
1. Determine the Legal Structure of Your Business
Deciding which form of ownership is best for you, whether it be sole proprietorship, partnership, limited liability company (LLC), corporation, S corporation, nonprofit or cooperative, will determine your federal tax obligations and the form you’ll have to file. To learn more about these it, visit the U.S. Internal Revenue Service’s (IRS) Guide to Business Taxes.
If you plan to name your business anything other than your own personal name, some states in the U.S. will require you to register the fictitious name (known as the “Doing Business As” name) with your county clerk’s office or state government.
3. Get a Tax Identification Number
Known either as an Employer Identification Number (EIN) or a Federal Tax Identification Number, this number is used to identify your business. If you are a domestic applicant, you can receive your EIN immediately by applying online or for International applicants, one week via fax.
4. Register for State and Local Taxes
Each state and county has its own tax laws. To avoid problems and save your business money, you will need to know what kind of tax obligations you are responsible for. The most common ones are income taxes and employment taxes.
5. Obtain Business Licenses and Permits
Almost every business is required to have some form of license or permit to operate legally. Depending on the product or services your business provides, you will need to apply for a federal and/or state permit to legally run your operation.
6. Understand Employer Responsibilities
There are a few legal steps you will need to take in order to hire employees. After you receive your EIN, you will need to set up records for withholding taxes, verify employees’ eligibility to work in the U.S, and become acquainted with other important statutes and regulations.
Expanding your business internationally is no easy task; for the U.S. market, it requires patience and an in-depth knowledge of these legal steps. If you are interested in expanding your business to the U.S. but would like assistance, ReachOut Business Solutions can offer you and your business our 20+ plus years of experience in assisting businesses from all over the world establish and significantly grow in the U.S.
ReachOut is committed to offering effective marketing strategies and providing avenues your business can explore to further distinguish your product. As a business consulting firm that assists international companies achieve success entering the US market, ReachOut is an expert in the areas of sales and marketing, technology, e-commerce, operations, distribution, accounting and human resources.
