Living in this demanding world, there are things which one must do in order to get on top and stay there for a long time. And today I will teach you how to start a small business in USA and strategies to implement in order to make it big in that industry.
Many things we enjoy today are due to the work of our fathers. The established business so we can have things to fall back on whenever things do not go well for us.
It is always better to pass through the pain of having a paying business that will stand tall for years than to start working in a company that will lay you off whenever they see any incompetent character in you.
Starting a business at a young age has been one thing I am glad I did, through the stress and difficulties I was able to learn the exact thing that works and that things which are a waste of time and resources and do worth looking into.
When I first started my business at age of 21 I was so naive and unexposed to the failure that awaits me in the business market.
I googled to find out those important steps I needed to appointment in order to run a good business. I got a few but lack professional guidance on how business should go in this 21st century hence I entered without the full knowledge.
After two years my business collapsed, I failed back to where I started and was discouraged to start again counting on the experience I had.
I did not go into any other business for the next two years fearing that I would be building a failed business that may give me more nightmares.
My ambition never stopped, I picked up myself and start again on the 9th month of the second year but this time made sure I learn all that was needed to start a business in the USA.
You see the USA is not like other countries, you need to work really hard to get a business flourishing here and have a game plan on how you can keep that going for a long time.
If you can handle that there is a good chance that you will be building a failed business that will definitely fall with your investments leaving you with nothing to back to.
How To Start a Small Business In USA
Many USA citizens who have tried starting a business but failed can testify that one thing contributed to their failure and that is getting control of the expenditure and income.
If as a business owner you can not control how you spend money and how your business generates income as well as how much the income is as well as keeping them in equilibrium. You will surely face a tough time getting anything our that business.
You need to keep account of how much you spend in tax, how much you pay employees and how much you take out from the business.
Accounting for all these things is the first step in building a successful business. When coupled with other factors, one stands a very good chance to make it in that business.
Get the government to approve your business
Foreigners don’t need a green card to start a business or to be listed on a U.S. corporation’s corporate officer or director list and make profits, as long as they pay taxes. The U.S government must approve individuals via either an E-2 Treaty Investor Visa or EB-5 Visa to work in a U.S. business they have invested in.
The EB-5 Immigrant Investor Program has named after the fifth preference visa for employment that program participants get if they are eligible. Foreign entrepreneurs can apply for the EB-5 visa classification if they invest $1.8 million (or $900,000. if the entity falls within a TEA) in a commercial enterprise. They also have to create ten full-time jobs. Due to their financial commitment and investment, foreign investors may be eligible for permanent U.S. citizenship and residency.
Select the Type of Business You Want to Start
Foreign entrepreneurs must be aware of certain restrictions regarding the business structures they can create for their U.S. businesses. Nonresidents cannot form an S Corporation, as each shareholder must be either a permanent resident alien or a U.S. citizen. The C Corporation and Limited Liability Company (LLC) business entities are preferred because they provide personal liability protection to business owners and some tax flexibility. An entrepreneur must file paperwork to register the entity in the state where it will be operating.
LLCs can be considered separate legal entities from their owners (known collectively as “members”), which protects against personal liability for entrepreneurs. LLC members can choose whether the business should be taxed like a C Corp or if it should have its profits and losses passed on to their tax returns. Although LLCs must comply with the same compliance requirements as C Corps, they are not required to do so in the same way.
C Corporations are separate legal and tax entities from business owners (known collectively as “shareholders”). Therefore, owners’ assets can be protected from financial and legal debts. A corporate tax return reports the company’s profits and losses. C Corps companies are more attractive to outside investors and financial institutions than other business entities. Because of the strict compliance controls in place, this is why they are so popular. There are potential downsides to the C Corporation structure. These include the paperwork and deadlines that must be met to remain in compliance. Additionally, the corporation pays taxes on its profits, and the shareholders are responsible for taxes on dividend income.
Select a Business Structure
Schwartz International tax advisor Richard Hartnig says that most foreign nationals choose to set up a corporation. This allows them to expand their business by offering unlimited stock. It is also more appealing to outside investors. However, the corporation’s profits are subject to double taxation: first at the corporate level and then as dividends to shareholders.
The benefits for corporate shareholders are often clear. They typically get a lower dividend rate. The corporate parent will not pay capital gains if it sells its U.S. subsidiary, as long as it doesn’t hold real estate. Harting says that even individual foreign owners would be better off with a C-corporation because they will be protected from IRS scrutiny. Harting says that foreign individuals are extremely hesitant to register their names on U.S. tax rolls.
Double tax means that C-corporations owners will pay more for the shield. In many cases, however, tax planners may use salaries, pension costs, and other expenses to reduce corporate income and eliminate most of the double taxation.
A limited partnership can be the best business structure in certain cases, depending on one’s tax laws. A limited partnership has limited liability for the partners. Profits are passed on to the members who pay income tax according to their tax returns.
Register for a Business Bank Account
You must open a bank account in the U.S. to create an entity based there.
Since the USA Patriot Act was passed in 2005, opening accounts in the U.S. has been more difficult for foreigners. However, official documentation and proof can help you to do it.
Serve Customers Fast and Stay Focused
Entrepreneurs must comply with certain requirements depending on the entity type and the business’s location. They must pay and file taxes on time. They may also be required to file an annual report, renew licenses or permits, hold shareholder meetings, and other requirements. Failure to follow reporting requirements and pay fees could result in penalties, fines, or even the loss of personal liability protection for owners and suspension or dissolution.
There the most important thing in starting a business in the USA is knowing your stand at all times. Get the important steps right at your initial startup then make sure you stick to that part and never astray then you are sure of going as far as building a brand.
I hope this guide helps you achieve your biggest dream and make the best out of the business you have chosen. Remember there has not been an easy way to get to a higher stand than working hard to achieve anything you see as a challenge. Follow the guide I have given out here and you are sure to make it.