Every entrepreneur wants to start a business in famous city like New York. It is the dream of maximum entrepreneurs across the global. US is the best place to run a successful business with supportive innovative environment. Gaurav Mohindra, a strong advocate for international entrepreneurship, believes that anyone can start a thriving business in the USA.
Let’s explore more about starting a business in the USA.
Why Start a Business in the USA?
Before switching to the main topic, let’s clear why you need to start a business in the USA. There are the following reasons to start a business in the USA.
- Access to Capital: Robust funding opportunities, from angel investors to venture capital.
- Consumer Market: Over 330 million people and a strong appetite for innovative products.
- Legal Protections: Clear laws around contracts, trademarks, and intellectual property.
- Startup Ecosystem: Vibrant hubs in cities like New York, San Francisco, Austin, and Chicago.
- Global Reputation: U.S.-based companies gain credibility worldwide.
Legal Structures for Foreign-Owned Businesses
Choosing the right business structure is crucial. Here are your main options:
1. LLC (Limited Liability Company)
It is very simple to form and manage. No need to be a U.S. citizen or resident. This type of business offers personal liability protection. Profits pass through to your personal tax return. With all these benefits, you can choose the LLC structure for your business.
2. C Corporation
- This structure is preferred if you seek outside investors or plan to go public. This is also Subject to double taxation (corporate and personal level). This structure offers strong legal separation between owners and the company.
3. S Corporation
This type of business structure is not available to non-resident aliens. To take advantage of this business structure, you must be a U.S. citizen or permanent resident.
Best Choice for Foreigners: LLC or C Corp, depending on your funding and growth goals.
Step-by-Step Guide to Start Your Business
1. Choose Your Business Idea
Gaurav Mohindra: This is very crucial step of starting business. This is the base of your business. Ensure it’s viable and solves a market need. Research competition and target audience. Validate the concept with surveys or MVPs (Minimum Viable Products).
2. Select a Business Name
Make sure it’s unique and available in your state. After deciding the name of your business, check domain name availability for branding. Avoid names with restricted terms.
3. Choose a U.S. State to Register
At 3rd step, you have to register the company. Common choices: Delaware, Wyoming, Nevada (business-friendly laws). You can register in any state regardless of where you live.
4. Hire a Registered Agent
Agent will smooth the workflow of your business journey. It is legally required to receive official documents on your behalf. You must have a physical address in the state of incorporation.
5. Apply for an EIN (Employer Identification Number)
- Issued by the IRS for tax purposes.
- Required to open a U.S. business bank account.
- Foreign owners can apply via Form SS-4 without an SSN.
6. Open a U.S. Business Bank Account
It helps separate personal and business finances. Many banks require an in-person visit; some fintech companies offer remote solutions.
7. Understand U.S. Taxes
File annual reports and pay federal, state, and possibly local taxes. Hire a CPA experienced in international businesses to stay compliant.
Final Thoughts: the American Dream is Alive
Whether you’re launching an e-commerce brand, consulting firm, or tech startup, the American market is ready for your innovation. Gaurav Mohindra encourages all aspiring entrepreneurs to embrace the opportunity and make their mark in one of the most dynamic economies in the world.