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By Travis Kliever
Updated March 8, 2024

Doing Business in the US

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Doing business in the US means doing business somewhere that is home to a diverse and technologically advanced economy, standing as a powerhouse in the global economic landscape. The US economy is characterized by a rich history of entrepreneurship, innovation, and a competitive market, offering immense opportunities for businesses, both domestic and international.

US Business Guides

Statistics about the Economy of the USA

As of 2020, the US boasted the world’s largest economy with a GDP surpassing $21 trillion. The country has a low unemployment rate, which was around 3.5% before the COVID-19 pandemic, though it has fluctuated since. Key industries contributing to the robust economy include technology, healthcare, finance, and real estate.

Statistic	Value
Size	World’s largest (nominal GDP)
GDP (Current US$)	$25.44 trillion
GDP per capita	$76,329.60
GDP growth (annual%)	4.9% (Q3 2023)
Unemployment rate	3.6% (Nov 2022)
Inflation (CPI)	8.0% (2022)
Trade deficit	$63.2 billion (Nov 2023)
Current account deficit	$200.3 billion (Q3 2023)
Poverty rate (2.15 $/day)	0.20%
Life expectancy	79.1 years
Human Capital Index	0.7

Why Companies Should Consider Doing Business in the US

The United States of America has long been a hub for global commerce and a land of opportunity for businesses of all sizes. Whether you’re an established multinational corporation or a startup looking to expand internationally, there are several compelling reasons why you should consider doing business in the USA (not least because the federal government generally, and federal agencies specifically, actively promotes entrepreneurship and innovation!)

Market Size and Diversity

One of the most attractive features of the U.S. market is its sheer size and diversity. With a population of over 331 million people, the USA represents a massive consumer base that spans various demographics and geographic regions. This diversity allows those with a business entity there to tap into a wide range of markets and customer segments, making it easier to adapt and grow. Business opportunities are rife in the largest economy in the world!

Innovation and Entrepreneurship

The USA is renowned for its culture of innovation and entrepreneurship. It’s home to Silicon Valley, which has consistently been at the forefront of technological advancements. This ecosystem of innovation extends beyond tech, encompassing various industries like finance, healthcare, and manufacturing. By establishing a presence in the USA, businesses can access cutting-edge technologies, collaborate with forward-thinking startups, and benefit from a dynamic business environment.

Access to Capital

The U.S. offers numerous opportunities for businesses to secure capital for growth. The country boasts a robust financial system with a wide array of investment options, including venture capital, private equity, and public markets. Anti money laundering regulations also contribute to secure capital allocation. Additionally, government grants, loans, and incentives are available to foreign investors to encourage economic development and innovation. These financial resources can help businesses scale and thrive. Economic co operation with other countries means that doing business in the United states can have huge international implications, too.

Rule of Law and Intellectual Property Protection

The U.S. is known for its strong legal framework and commitment to the rule of law. This provides a stable and transparent business environment, reducing risks associated with corruption and arbitrary regulatory changes. Furthermore, the USA offers robust intellectual property protection, ensuring that your innovations and assets are safeguarded.

Access to Skilled Talent

The USA attracts top talent from around the world due to its prestigious universities, research institutions, and thriving industries. This diverse and highly skilled talent pool includes professionals with expertise in various fields, making it easier for businesses to find and recruit the skills they need. Access to skilled workers can be a critical factor in achieving business success.

Infrastructure and Logistics

The USA boasts a well-developed infrastructure and logistics network. Its extensive road, rail, and air transportation systems facilitate the efficient movement of goods and services. This infrastructure, coupled with the country’s strategic geographic location, makes it an ideal hub for businesses involved in international trade and distribution.

Stable Political Environment

Despite political drama throughout the federal republic, the USA’s political system is characterized by stability and a commitment to democracy. While there may be policy differences, the country’s institutions provide a predictable regulatory environment that fosters long-term business planning and growth. This stability can be a significant advantage for businesses looking to make substantial investments. The taxation environment also remains relatively stable throughout times of political transition.

Clearly, the United States offers a unique combination of factors that make it an attractive destination for businesses worldwide. Its vast market, innovation ecosystem, access to capital, legal protections, talented workforce, infrastructure, and political stability create a conducive environment for business growth and success. Whether you’re a domestic company looking to expand or an international enterprise seeking new opportunities, considering doing business in the USA should be a strategic move that opens doors to numerous possibilities.

Business Culture in the USA

Understanding the business culture in the USA is essential for any company or entrepreneur looking to establish a presence or expand their operations in this dynamic market. The United States is known for its diverse and adaptable business environment, characterized by certain cultural norms and practices that can significantly impact your success.

1. Professionalism and Punctuality

Professionalism is highly valued in the American business culture. Business meetings are typically formal affairs, with punctuality being of utmost importance. Arriving on time is seen as a sign of respect, and being late without a valid reason can be perceived as unprofessional.

2. Direct Communication

Americans tend to communicate directly and openly in the business context. They value clarity and expect straightforward communication. It’s essential to be concise and articulate when presenting ideas or proposals, and asking questions is encouraged to ensure mutual understanding.

3. Results-Oriented

The American business culture is results-oriented. Businesses focus on achieving tangible outcomes and meeting objectives. Performance and productivity are highly regarded, and individuals and teams are often evaluated based on their ability to deliver measurable results.

4. Networking and Relationship Building

Networking plays a crucial role in American business culture. Building and nurturing professional relationships is seen as a valuable investment in one’s career or business. Attending industry events, conferences, and joining business associations can help you expand your network and create opportunities for collaboration and growth.

5. Work-Life Balance

While Americans are known for their strong work ethic, there is also an emphasis on achieving a work-life balance. Many companies offer flexible work arrangements and recognize the importance of employees’ personal lives. It’s essential to respect these boundaries when doing business in the USA.

Networking in the USA

Networking is a fundamental aspect of the American business culture. Building a strong network can open doors to new opportunities, partnerships, and valuable insights. Here are some tips for successful networking in the USA:

1. Attend Networking Events

The USA hosts a wide range of networking events, including industry conferences, trade shows, and business seminars. These gatherings provide an excellent opportunity to meet like-minded professionals and potential partners. Be sure to exchange contact information and follow up with your new connections afterward.

2. Utilize Online Platforms

Online networking platforms like LinkedIn are widely used in the USA. Create a professional profile, connect with industry peers, and engage in relevant discussions. Sharing your expertise and insights can help you establish credibility and attract potential collaborators or clients.

3. Be Genuine and Authentic

Authenticity is highly valued in American networking. Be yourself, and genuinely show interest in others’ experiences and ideas. Building authentic relationships is more likely to lead to long-term connections and collaborations.

4. Elevator Pitch

Prepare a concise and compelling elevator pitch that introduces yourself and your business. You should be able to articulate your value proposition and what sets you apart in a brief and engaging manner.

5. Follow Up

After making initial connections, don’t forget to follow up promptly. Send personalized messages expressing your interest in continuing the conversation or exploring potential collaboration. Consistent follow-up demonstrates your commitment to building a relationship.

How to Hire in the USA

When hiring in the US, employers have to navigate a complex landscape of federal, state, and local regulations. Job portals, recruitment agencies, and headhunters can be engaged to find the right candidates. Employers must be aware of different employment laws, including those regarding minimum wage, benefits, and anti-discrimination policies.

Here are some crucial aspects to consider:

1. Compliance with Employment Laws

Compliance with employment laws is of paramount importance when hiring in the USA. Federal laws, such as the Fair Labor Standards Act (FLSA), govern issues like minimum wage, overtime pay, and child labor. However, it’s essential to be aware that many employment regulations are at the state and local levels, and they can vary significantly. These regulations may encompass areas such as paid family leave, sick leave, and minimum wage rates that differ from federal standards. Employers must thoroughly research and understand these laws to ensure compliance.

2. Anti-Discrimination Policies

The USA has comprehensive anti-discrimination laws that protect employees from unfair treatment based on factors such as race, gender, age, disability, and more. Employers must be vigilant about adhering to these policies throughout the hiring process. This includes creating job postings that do not discriminate and conducting interviews that are free from bias. Employers should also implement robust equal opportunity employment policies and practices to foster diversity and inclusion in the workplace.

3. Employee Benefits

Employee benefits are a significant consideration when hiring in the USA. While providing benefits like health insurance, retirement plans, and paid time off is not always mandatory at the federal level, many companies offer these perks to attract top talent and remain competitive. Employers should carefully craft benefit packages that align with industry standards and meet the needs of their workforce.

4. Background Checks and Immigration

Employers in the USA may conduct background checks on potential hires, including criminal background checks and reference checks. It’s essential to adhere to legal requirements and obtain proper consent when performing these checks. Additionally, for candidates who are not U.S. citizens or permanent residents, employers must ensure compliance with immigration laws, including verifying work authorization.

5. Onboarding and Training

Once you’ve selected the right candidate, effective onboarding and training are key to a successful transition into the company. Employers should have a structured onboarding process in place that includes orientation, job-specific training, and an introduction to company policies and culture. This sets the stage for a positive and productive employee experience.

Hiring in the USA involves not only finding the right talent but also navigating a complex web of legal and regulatory requirements. Employers must stay informed about federal, state, and local employment laws, anti-discrimination policies, and benefits standards. By adhering to these regulations and providing a comprehensive onboarding experience, businesses can attract and retain top talent while mitigating legal risks in the hiring process.

Introducing the Employer of Record and PEO Solution

Companies looking to expand into the US without establishing a full-fledged entity can opt for an Employer of Record (EOR) or a Professional Employer Organization (PEO). These entities handle various administrative and compliance tasks, including payroll, tax administration, and human resource management, enabling a business to function smoothly without delving into legal complexities.

Working with a Professional Employer Organization (PEO) or Employer of Record (EOR) solution in the USA can offer numerous benefits for businesses, especially for those considering entering the U.S. market. Here are several advantages of using a PEO/EOR instead of setting up an entity and hiring directly:

Cost Savings: Employing a PEO/EOR can be more cost-effective than establishing a legal entity in the USA. It eliminates the need for setting up and maintaining a separate legal structure, reducing administrative expenses.
Compliance Expertise: PEOs/EORs specialize in employment and labor laws, tax regulations, and compliance requirements. They can help businesses navigate the complex U.S. regulatory landscape, reducing the risk of legal issues and penalties.
Speed to Market: Setting up a legal entity in the USA can be a time-consuming process involving various bureaucratic steps. Working with a PEO/EOR allows businesses to enter the market quickly, as they can hire and start operations without waiting for entity establishment.
Access to Benefits: PEOs often offer access to employee benefits, such as health insurance, retirement plans, and other perks. This can help attract and retain top talent, even for small businesses that might not otherwise offer such benefits.
Risk Mitigation: PEOs/EORs assume certain employment-related liabilities, such as payroll tax compliance, worker’s compensation, and unemployment claims. This can protect businesses from financial and legal risks.

Using a PEO/EOR solution in the USA can provide businesses with a cost-effective, compliant, and streamlined approach to managing their workforce and HR functions. It enables companies to focus on their core business activities while reducing the complexities and risks associated with hiring and employment in a foreign market.

How to Get a Work Visa

Securing a work visa in the US involves navigating through several visa categories, including H-1B for specialized employees and L-1 for intracompany transfers. It is essential to ensure that both the employer and the employee fulfill the necessary criteria to secure a visa. Consulting with a legal expert can facilitate a smoother visa acquisition process.

That said, here is a general outline of the process:

1. Determine Your Visa Category:

Identify the specific type of work visa that is appropriate for your situation. The most common work-related visas include H-1B (for specialized workers), L-1 (for intracompany transfers), O-1 (for individuals with extraordinary abilities), and E-2 (for investors and business owners), among others. Each visa category has its own eligibility requirements and application procedures.

2. Find a U.S. Employer:

In most cases, you will need a job offer from a U.S. employer to apply for a work visa. The employer will typically need to file a petition on your behalf with U.S. Citizenship and Immigration Services (USCIS) to request approval for your visa.

3. Labor Certification (if required):

For certain visa categories, such as the H-1B, the employer may need to obtain a labor certification from the U.S. Department of Labor (DOL). This process involves demonstrating that hiring a foreign worker will not negatively impact U.S. workers.

4. Petition Filing:

Once your employer’s petition is approved by USCIS or the DOL (if applicable), you will receive a notice of approval. This approval notice is necessary to proceed with the visa application.

5. Visa Application:

Depending on your country of residence, you will apply for a U.S. visa at the nearest U.S. embassy or consulate. You will need to complete the appropriate visa application form, pay the visa application fee, and schedule an interview appointment. The specific application process may vary slightly by visa category.

6. Attend Visa Interview:

Attend an in-person visa interview at the U.S. embassy or consulate. During the interview, you will be asked about your qualifications, the nature of your employment, and your ties to your home country. Be prepared to provide documentation to support your application.

7. Visa Approval:

If your visa application is approved, the consular officer will affix the visa sticker to your passport, allowing you to travel to the United States. Keep in mind that visa approval does not guarantee entry into the U.S.; that decision is made by the U.S. Customs and Border Protection (CBP) officer at the port of entry.

8. Arrival in the USA:

Upon arrival in the United States, you will go through immigration and customs procedures at the airport or port of entry. The CBP officer will determine your eligibility for entry and the duration of your stay.

9. Employment Authorization (if applicable):

Depending on your visa category, you may need to apply for employment authorization documents, such as an Employment Authorization Document (EAD) or a Social Security Number (SSN), to legally work in the United States.

10. Visa Renewal or Extension:

If you plan to stay in the U.S. beyond the initial visa validity period, you may need to apply for a visa renewal or extension. The process for renewal or extension can vary by visa category and typically requires the support of your U.S. employer.

Note that the specific requirements and procedures for obtaining a work visa in the USA can change over time and may depend on your individual circumstances. It is advisable to consult with an immigration attorney or refer to the official website of the U.S. Department of State for the most up-to-date information and guidance regarding the visa application process.

How to Register a Company

Here are the top considerations when registering a company in the USA:

Business Structure: Determine the appropriate legal structure for your company, such as a sole proprietorship, partnership, LLC, corporation, or others.
Name Availability: Choose a unique and distinguishable name for your business that is not already in use by another company in your state.
Registered Agent: Appoint a registered agent who will receive legal documents and official mail on behalf of your company.
State of Formation: Select the state in which you want to register your business. It may not necessarily be the state where you operate, but it should align with your business goals and legal requirements.
Articles of Organization/Incorporation: Prepare and file the necessary formation documents (Articles of Organization for an LLC or Articles of Incorporation for a corporation) with the appropriate state authority.
Operating Agreement/Bylaws: Draft and adopt an operating agreement (for LLCs) or bylaws (for corporations) outlining the management and operational structure of your company.
EIN: Apply for an Employer Identification Number (EIN) from the IRS, which is a unique tax ID for your business, required for tax purposes and opening bank accounts.
Business Licenses and Permits: Research and obtain any necessary licenses and permits at the federal, state, and local levels, depending on your business type and location.
Taxes: Understand your federal, state, and local tax obligations, including income tax, sales tax, and employment taxes. Register for state and local tax accounts as needed.
Compliance: Stay informed about ongoing compliance requirements, including annual reports, filings, and tax deadlines, to maintain your company’s good standing.

How to Acquire Real Estate for Business

Acquiring real estate for business operations in the US requires careful consideration of the location, zoning laws, and market conditions. It is recommended to engage real estate experts and legal advisors to navigate through the process successfully. Being aware of tax implications and securing favorable financing terms are critical in acquiring real estate for business purposes. Here are some general points to consider:

Navigating the Real Estate Landscape

In the world of business, acquiring real estate in the USA is not just a transaction; it’s a strategic move that can profoundly impact the success and growth of your enterprise. As you navigate the intricate process of securing property for your business, careful consideration of your specific needs, budget, and location becomes paramount.

Defining Your Real Estate Requirements

Begin by defining your business’s real estate requirements. Are you looking for office space in a bustling downtown area, a retail storefront in a high-traffic location, or an industrial facility in a strategically positioned logistics hub? These considerations will set the stage for your real estate journey.

Budgeting and Financing Strategies

Budgeting and financing are crucial steps in the process. Determine how much capital you have available for this investment and explore financing options. Whether you choose to purchase property outright, secure a commercial mortgage, or opt for a lease agreement, your financial strategy will play a pivotal role in your decision-making.

The Role of Location Research

Location research is where the heart of your business will reside. Extensive market analysis will help you identify the perfect spot, taking into account proximity to your target audience, accessibility, visibility, and adherence to local business regulations. Engaging with a local real estate expert can provide invaluable insights into the dynamic property market.

The Value of Real Estate Professionals

A licensed commercial real estate agent or broker will be your guide through this intricate journey. Their local expertise will help you identify suitable properties, negotiate deals, and navigate legal complexities. Your agent is a valuable asset in ensuring you make an informed decision.

Thorough Due Diligence

Due diligence is essential before finalizing any property transaction. Conduct inspections, assess zoning and land use regulations, and perform environmental studies. This meticulous examination ensures that the property aligns with your business goals and presents no unforeseen challenges.

Negotiating the Terms

Negotiations with sellers or landlords will determine the terms of your agreement, including pricing, lease agreements, and any necessary contingencies. Enlisting the assistance of a real estate attorney is critical to drafting legally sound contracts and ensuring compliance with local and state regulations.

Financing Guidance

If financing is part of your strategy, your lender will be a vital partner. They will guide you through the loan application process, reviewing your credit, financial documents, and overseeing underwriting to secure your financing.

The Closing Process

The closing process marks the culmination of your journey. It involves signing the final purchase or lease agreement, paying closing costs, and officially transferring ownership. Attention to detail during this stage is essential to ensure a smooth transition.

Post-Acquisition Planning

Post-acquisition planning includes establishing the property’s use, addressing any necessary renovations or improvements, and ensuring compliance with permits and licenses. Property management considerations, whether in-house or through a third-party management company, are vital for seamless operations.

Ongoing Compliance and Financial Considerations

Compliance with local, state, and federal regulations, as well as property taxes and financial obligations, should remain on your radar as you move forward.

As you venture into the realm of real estate acquisition for your business, remember that it’s more than a transaction; it’s an investment in your company’s future. Continuous market analysis and adaptability will ensure that your real estate strategy remains aligned with your evolving business objectives. In the dynamic landscape of American business, your property serves not only as a foundation but as a catalyst for growth and success.

Conclusion

Embarking on a business venture in the USA offers a gateway to a vast market with substantial opportunities for growth and innovation. Understanding the country’s economic backdrop, business culture, and regulatory environment is essential to steer a business towards success. Leveraging professional expertise in various stages of business setup can pave the way for a fruitful business journey in the USA.

Article By

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.