Personal experience: how to open a company in the USA in a month

IT companies from different countries strive to conduct their business in the United States, or rather, in Silicon Valley. Startups and existing projects are moving here to be closer to investors, large companies, as well as fresh ideas and technologies. Opening your own business in the USA is quite simple, says Yuri Mosh, the founder of Russian America, an immigration and business consulting company. About how much time, money and documents it will take if you follow the experience of Moshi, the newspaper writes. biz360.

Yuri Mosha Photo: Facebook

Good alignment

A quarter of the global IT market is concentrated in the USA. There are 100 thousand IT companies operating here, 99% of which are small and medium-sized with up to 500 employees. These are favorable conditions, so many entrepreneurs try to either immediately create an IT company in the USA, or want to open a branch of an existing business.

With the right level of organization, it is possible to register IT business in the USA from scratch in just a month. And we will show you how to do it.

1 step. Market preparation and exploration

The first and most important thing is to develop an idea and a business plan. If you are planning to gain a foothold in the American market, we recommend conducting extensive market research.

It is necessary to study as closely as possible the need for your idea in the market, the number and nature of the target audience, promising ways of promotion.

It is better to order a study from an American company that knows the market well. Yes, it is expensive, but later you can save, because you will make a lot less mistakes at the very beginning.

Analysis of the market average depth takes about two to three weeks. If you plan to analyze the market, then this item is executed immediately after the detailed development of the idea.

If you have already come up with the name of your company, check the availability of this name. On the official website of each state there is a section Name Availability, the check will take two minutes.

2 step. Choosing a business form and place of registration

The choice of the legal form of business predetermines the goals of the entrepreneur. In the US, there are four organizational forms of doing business:

sole proprietorship (Sole Proprietorship).

partnership (Partnership).

corporation (Corporation).

limited liability company (Limited Liability Company).

Each form has its advantages and disadvantages, so we will tell you a little about everyone.

Sole proprietorship

The simplest form of business from a management point of view. An entrepreneur pays taxes as an individual - on company income. But there are also disadvantages: bureaucratic difficulties with hiring a large number of employees, plus banks are not too willing to give loans for the development of SP.

And the main disadvantage is the unlimited financial responsibility of a businessman. This means that if the court imposes a fine on the company or obliges it to compensate the client’s losses, then the lack of company funds will be covered by the entrepreneur’s personal property.

This form is convenient for individual specialists in the IT-sphere, but poorly suited for full-fledged companies.

Partnership

Equal partnership of several company founders. There are two types of such partnerships: general and limited liability. The general is similar to SP, and in it businessmen bear full financial responsibility. In a limited response, the obligation goes only within the company’s deposits and capital.

Partnership is an excellent form of organizing an IT company for equal specialists.

Corporation

The most common form of business in IT. The most attractive option for investors because of its flexibility in management.

The company itself is financially responsible for its own assets. In addition, banks are relatively loyal to lending to such companies.

This is the most profitable type of business organization for startups who are counting on rapid growth.

LLC

Ideal for small companies that operate in narrow business niches. By its structure, almost completely meet the Russian LLC. This is a kind of hybrid that combines the positive aspects of partnership and corporation.

Lack of management flexibility makes this form of business less attractive to investors. But if there is no urgent need for the infusion of funds from outside, then this way of organizing can easily argue in convenience with corporations.

Now choose the state of registration. The choice is one of the key, because each state has its own tax laws and tax rates. Many companies seek to register in the states with the most loyal tax conditions. For example, in Nevada, Wisconsin or Delaware. But this is not the case with IT companies.

The image of IT companies plays a crucial role. The vast majority of IT giants are registered in California, in the so-called Silicon Valley. Despite the fact that taxes for businessmen are among the highest, the image of professionals from Silicon Valley is worth the cost.

The registration procedure itself takes several hours, and it can be done in one day. And the form can be filled on the Internet without personal attendance. Here is section for california. To complete the entire package of documents, it will take several days.

The cost of opening a company is up to $115. But a non-resident needs to additionally register a mailbox in the United States, to which official notices will be sent. Its cost is from 200 to 400 $.

3 step. Registration in the tax and opening an account in the bank

The tax number for non-resident businessmen (TIN) allows a company to pay taxes, hire employees and open a corporate bank account. To get it, you need to print and fill it. tax form.

There is a difficulty here - non-resident forms are accepted only in printed form, there is no online acceptance. You need to either send the completed form with the remaining documents (the list of which can also be viewed at the link above) by mail, or use the services of an agent.

The second option is preferable, because it takes much less time. It takes an average of three to seven days to get a tax number.

Opening an account is the last bureaucratic leap. To open a corporate bank account, you need to provide a company registration certificate and tax number. This must be done in person or through an authorized agent.

An entrepreneur can choose absolutely any bank - there is practically no difference. But we recommend choosing large institutions that are among the top 50 US banks. This way you can be sure of the reliability of all monetary transactions. In addition, it is easier to get a loan for business development from large banks, and they offer more favorable loan conditions.

During the opening of the account you will be asked to put on it from 100 $ to 1000 $. The amount depends on the size of the minimum deposit in the bank.

4 step. Launch and development

So, all the bureaucratic difficulties have been overcome, the most important thing remains - to start working and bring the company to profit. Be prepared in advance for high competition and demanding customers. The US market is oversaturated with IT companies, so we recommend not focusing on it. Take the project immediately to the international level, if finances allow.

Important point. Don’t expect the company to become self-sustaining in a month or two. Clients in the USA prefer to work with proven projects, and the main method of promotion is word of mouth marketing.

At the same time, Americans trust the media. Of course, a full-fledged advertising campaign in specialized online publications will cost a lot, but it is guaranteed to bring customers to work in the first six months.

The first year of work is the most difficult, because it is at this time that the customer base is created from scratch. Therefore, in order to guarantee the survival of the company, the safety capital should be in the 70 000 - 100 000 $ area.

It’s also worth remembering that in the USA, contracts stipulate absolutely all the nuances of projects: from the deadlines for completing each stage of development to fines and sanctions for poor quality work or missed deadlines. On the other hand, this has a plus for an entrepreneur. After all, all types of work, the performance of which is not specified in the contract, are paid separately. We still recommend hiring a good corporate lawyer or even several - you cannot save money on this.

The timing of the withdrawal of an IT company for profitability and expansion can vary greatly. On average, starting development takes six months, as in Russia. Then it becomes clear whether the company is viable or not.

PS

Opening a company in the USA is not difficult. It is then much more difficult to manage such a company, because due to high competition only the best remain in business. And here everything depends on the skills of the businessman and his team.

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