Starting a business is no easy task, regardless of where you are located. But depending on the country you want to start or expand your business to, there can be significant advantages that you might want to consider. Take for example, Brazil and the U.S.
When it comes to the legal process of starting a business, the U.S. beats Brazil in overall time, cost and ease.
Time. According to The World Bank, the time it takes to complete the procedures legally required to operate a business is 6 days in the U.S. and 84 days in Brazil. Take in consideration that if “a procedure [could] be speeded up at [an] additional cost, the fastest procedure, independent of cost, [was] chosen” for the study.
The U.S. also beats Brazil in the time it takes to prepare, file and pay business taxes. In the U.S. it takes about 175 hours per year while Brazil requires 2,600 hours per year, more than any other country out of the 187 surveyed and 1,575 hours more than Bolivia, the country ranked right before Brazil.
Expense. It is also more expensive to start a business in Brazil than the U.S. Depending on the type of business you are starting (Limited Partnership, LLC, Corporation, etc.) and in which city or state you’d like to start your business, the cost to register can vary. The cost in the U.S. is generally lower than in Brazil. But aside from the difference in cost, the U.S. also offers more tax incentives to new businesses. For example, the U.S. Small Business Administration (SBA) states that you can receive a tax deductible of up to $5,000 in the first year of doing business.
Ease. Regarding the ease of doing business, the U.S. is ranked 7th while Brazil is ranked 119th. In Brazil, the process of starting a business has many challenges and can be extremely complicated. Without the assistance of an accountant and/or lawyer, you will find yourself waiting a very long time to receive the correct paperwork to operate your business. Opposed to the U.S. where many of the procedures can be done electronically, you will be able to submit forms and apply for licenses without much complication. It is still good to have the assistance of an accountant and attorney if you are a U.S. native and especially so if you are coming from another country.
With such a wealthy economy and numerous government incentives for foreign investments, it is worth the consideration for both new and experienced business owners to explore the benefits of starting a business in the U.S. Contact ReachOut today so that we help your business achieve success and reach the American audience.
