Are you planning to jump through all the hoops in order to start a new business or expand your existing one in the foreseeable future? If the answer is yes, then you are probably wondering whether it will be complicated or not and what are some of the most common issues that foreign citizens have to deal with. It is worth mentioning that establishing a business in the US does not require foreign entrepreneurs to have a green card, to have citizenship, or to have a U.S. address.

There are numerous different aspects that you need to consider before making this step including the local business practices, language barriers, beaurocracy, etc. For example, you can read this Beenverified background check service review and learn more about methods to get more information your future business partners, competitors and suppliers.

By expanding or establishing a new operation in the United States, foreign companies are able to seize major business opportunities. Here are some of the most important safety precautions that you need to take in order to become successful in one of the largest economies in the world.

1. Have a very good understanding of the U.S. legal system.

The process of opening a new company in the U.S. can be extremely different depending on the state in which you are doing business. However, generally speaking, in order to register your company, you need to file certain application documents and obtain a series of licenses and permits.

It is extremely important to know the local legislature for the area in which you are doing business. Regardless of whether you are an American citizen or a foreign national, when you own a company, you become subject to local, state, and national laws.

American law is quite unique, as there are certain areas governed exclusively by federal law and others that are set by each individual state. Furthermore, each state has its own set of laws which apply to contracts, employment relationships, and business transactions. Consequently, in order to avoid complications, it is important to understand how the U.S. legal system works.

2. Choose the appropriate type of business entity.

Will your business be a corporation, a limited liability company (LLC), or a partnership? Each of these types of businesses has their own advantages and disadvantages and whichever you choose, you will have to comply with the U.S. state laws.

If you are considering forming a partnership, you won’t have to file any organizing documents with the state government.  Although a written agreement is not necessary, you should still consider formalizing the partnership in some way. Hiring a team of legal professionals who are skilled in United States company formation can be extremely helpful. Working alongside experienced specialists will help you get acquainted with different legal factors and case-specific aspects while establishing your company.

3. Obtain work visas for all your employees.

If you want to build a solid presence in the United States, you might have to open several offices and hire a lot of employees. Chances are, some of your employees will be foreign and it is important to ensure that they have the proper visa to work in the U.S. The American visa laws are exclusively federal, which means that no individual state can regulate or provide visas for foreigners.

The great majority of work visas have to be approved by the Immigration Services (USCIS). In order to avoid any complications or application errors, a lot of companies will hire a U.S. immigration attorney who can provide expert advice on the matter. Doing background checks on your future employees is also recommended.

4. To transfer pricing regulations and to address taxation, it’s highly recommended to seek legal counsel.

A lot of foreign entrepreneurs have to deal with unique international tax problems that are often vital to the successful formation of a business. It is crucial to understand what your company’s compliance needs are and be able to budget your costs appropriately.

All corporations, companies, and partnerships that are doing business in the United States are subject to local, state, and federal taxes. The U.S. has bilateral tax treaties with a lot of foreign countries in order to encourage commerce between countries and to prevent and reduce the cases of tax evasion or double taxation. Every new company has to obtain a unique EIN (Employer Identification Number) from the IRS. Once your company has been assigned a unique number by the IRS, you will be able to open your business bank account and apply for the necessary licenses and tax returns.

If you are planning to sell products or offer services in the United States, make sure that your business is in accordance with all the federal, local, and state laws and regulations. Because navigating the United States legal system can be quite difficult, seeking legal counsel is highly recommended. This will help you avoid making fatal mistakes and having to deal with potential penalties.