Starting any sort of business can seem like an impossible task. With so many necessary steps to take, it’s easy to feel overwhelmed before you even begin. This feeling is magnified tenfold if you’re trying to start a business in a different country.
There are lots of perks to opening a business or extending your current company’s reach to another country. It’s a great opportunity to gain new clients, generate new sources of revenue, and take advantage of economic expansion in far-away lands. But with the goal of starting a business on the other side of the world comes a myriad of new obstacles. If you’re hoping to start a business in the US from overseas, here are a few key steps and considerations to get the ball rolling.
While the payoff of opening a business in the US can be dramatic, there will be numerous extra hoops and hurdles you’ll have to jump through along the way. If you take them in stride and have a thorough plan, you’ll be up and running before you know it.
One of the major areas you’ll want to invest time in? Getting to know the laws in the area you’re hoping to set up shop. For example, if you’re hoping to open a business in the Sunshine State, you may want to invest in a Florida business and finance exam course to prepare for the necessary certifications you’ll need to acquire. Or if you’re planning to reach a West coast audience, spend some time researching business regulations and buyer trends in California and Washington. Acquire permits and licenses if necessary. The more prepared you are from the get-go, the better off you’ll be when the time comes to open shop.
Once you have an understanding of what you’ll need to do within the state and local jurisdiction, it’s time to register your business. A common business registration type is an LLC, which is a great choice if you plan to be the sole proprietor of your business. Find a Registered Agent to work with for this process.
Different states require slightly different items in order to register an LLC. For example, if you want to form an LLC in Texas, make sure you check the local government’s website for detailed information. Typically, you will need to choose a name for your company, provide personal information, show proof of permits or licenses if applicable, and pay a fee.
You’ll need an address on file in the US to conduct business. Many folks opt to use the address of their Registered Agent. While this is permissible, it can complicate things because oftentimes lots of businesses are registered to the same address.
To simplify matters, acquire a local physical address separate from your Registered Agent. This can be a PO Box or a street address. You can have business mail sent there, and have it forwarded or scanned to you!
EIN stands for Employer Identification Number. This is the number the IRS uses to track taxes for your business. You’ll need one before you can open a bank account!
You can apply for one by filing Form SS-4.The process can take a few weeks, so start early. Use the wait time to research the best bank to utilize for your business, so you can apply for an account as soon as your EIN is approved.
Get Started Today!
If you have business dreams, there’s no reason an ocean or border should slow you down! Opening a company in the US takes time and effort, but the payoff could be well worth it. Get started on these steps today, and you’ll be open for business in no time.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.