Opening a business in the United States consequently entails the need to open a bank account in a local institution. This, in addition to serving to be able to physically open the new company, is essential for obtaining loans for companies.
The corporate bank account should be separate from the personal one (mandatory for corporations). Furthermore, it is necessary to open an account, because through the traceability of the movement of money, it can be shown that the company or startup is a real business. In fact, if after a certain period of time the company does not produce significant profits, the business is demoted to the rank of “hobby” and loses the opportunity to take advantage of various loans and facilities. In short… if you open an incorporate company in USA, the Americans themselves want it to be productive and profitable.
How to interface with American entrepreneurs
If you want to open a company in the United States, you have to take into account that you are dealing with American investors who are eager to do business. On the contrary … proposing to these people to do business with you must be one of the objectives to be set.
However, we must know that the American has a different philosophy from ours and it is necessary to approach it in the correct way in order to avoid losing the deal. Here are some tips.
Never propose to a US investor something that will be done in the future (we will do….). They must be offered what is ready to make money. If the investor is interested he wants to start immediately. Otherwise it will liquidate you with a “come back when ready”.
Punctuality is another very important element. Avoid making the American investor wait. You would make a sense of unreliability and discourage him from doing business with you.
Choice of company form in the USA
The United States allows you to open companies with different corporate forms. Each of these has very specific characteristics that may or may not adapt to the type of business you want to do.
Among the main corporate forms we find:
- Corporation (Inc or Corp),
- LLC (Limited Liability Company)
- Limited Partnership is a company made up of at least two people
- Sole Proprietorship, a single owner company
Usually, startups and companies tend to choose one of the top two American corporate forms with the help of CFO India. But while the former is more suitable for large publicly traded companies or planning to do so in the short term, the latter is preferable for small businesses and startups for a variety of reasons. One of these is the advantage for the shareholders of not having to respond with their own private capital in case things go wrong.
Corporation-type companies
The oldest corporate form ever in the United States. The opening procedure is very simple. Basically, the registration of the company (or rather the incorporation) is carried out by submitting an “article of organization” to the local authorities. Its capital is represented by shares.
LLC type companies
This is a more recent corporate form designed to encourage the influx of foreign investors into the US market. So the conditions are very advantageous. The type of taxation is defined as “pass-through-out”, ie they are not subject to double taxation of profits and, at the same time, the shareholders have limited liability. Private capital is protected and only the capital invested materially in the company is risked.
Another advantage is that the foreign entrepreneur who opens this type of company is not obliged to take up residence in the US.
