Forming a US company is a great way to start a new business or expand an existing one. Benefits include lower tax rates, fewer regulations and less red tape. US corporations enjoy a number of advantages over their foreign counterparts. They also offer greater flexibility in terms of where they operate. This means they can hire and fire employees without fear of being sued or having their assets seized.
U.S. companies also have better access to capital markets and tend to have higher valuations. This means they can raise more funds at a lower cost. In addition, US companies benefit from the protection of the U.S. legal system.
There is no shame in saying that I was inspired by StartFleet’s post on the benefits of starting a US business. But here I have tried to point out other benefits besides the ones they mentioned in their post. So if you want to know more about what are the other perks of starting a business as a foreigner, I recommend you to read their post as well.
Top 4 Advantages That Will Convince You to Form a US Company
1. Outstanding Legal Framework
If you have started a business as South African and operated it for some time, you have essentially created and accumulated a collection of assets. Financial compensation, intellectual property (such as trademarks, copyrights, and patents), and real estate are all examples of forms of compensation.
It is important to decide who should oversee the management of all of the company’s assets. Specifically, you (as an individual) or your company (as an organization) could be the wrongdoer, or both. From the point of view of liability, the second option is undoubtedly preferable. It is possible that registering your company is an option for you when you start a new business.
In order for your business to operate legally, it must find a favorable legal environment in your jurisdiction. The United States is considered one of the best jurisdictions for business formation in the world as South African. You can rest assured that your company’s assets will be safe and secure in this location. This is true regardless of political concerns, economic considerations (such as the rate at which the country’s gross domestic product increases annually), and other variables that may affect it.
When it comes to depending on the US legal system in the event that someone mistreats your company, you may be sure. As far as the legal system of the United States is concerned, it protects your company from litigation by insulating its owners, managers, and registrants from liability.
2. Don’t Go for Offshore Company
Most individuals who own offshore companies today encounter significant difficulties in establishing a bank account anywhere in the world because they do not know where their company was incorporated. On the other hand, US companies are certainly more enticing than offshore corporate jurisdictions in many respects.
In addition, companies based in the United States are better known by investors and potential employees than their counterparts in other regions of the world.
3. Banking and Utilizing International Services
If you are South African, it is quite difficult for you to apply for a business account in the United States unless you are own an US company.
For example, you cannot receive payments from Amazon unless you have a bank account in the United States. This applies to the Amazon referral program, among others.
In order to have a U.S. bank account and use Swift, it is usually necessary to register a company in the United States.
4. Immigration to the US
You might want to think about investing and working in the United States. In this case, registering your business in the US and immigrating to the United States would be of great benefit to you. You can obtain a business visa or a work visa.
For example, if you have established a U.S. business, you may qualify as a contract investor in the United States and obtain a U.S. investor visa (E-2 visa). Alternatively, you may be eligible for an intra-company transfer visa (L-1 visa). Finally, you may also be eligible for an Investment Green Card (USAEB-5 visa). Thus, a US company would assist you in your immigration to the United States.
This is especially true for South Africans who want to register a business in the United States, especially those who are thinking about starting an internet business.
It is time
If you are more than excited to start your business in the US as a South African and not only look for more guides on how to do found your business but also company formation, tax consultation, opening business back accounts and applying for credit cards then your first go-to should be StartFleet’s comprehensive guide.