No global market holds more sway over entrepreneurs than that of the United States. As the largest economy in the world, it presents unmatched opportunities for growing businesses. Among the challenges, one comes multiplied by 50 as each state essentially acts like a small country, adding another layer of complexity that newcomers must overcome to thrive.
Local Bank Acct.
Depends on the entity
Weekly, Bi-Weekly, Monthly
Of Gross Salary
Good to Know
- Deciding which business entity to establish is important. At first glance, it may seem like setting up a branch office — not incorporating at all — helps you achieve your goal of getting up and running fast in the United States. But the wrong business setup can have serious implications.
- While it’s true all states but Montana are "at-will" by default — meaning employers can hire or fire US employees for any or no reason — most employees belong to a so-called "protected category" (race, age, sex, religion, nationality, etc.). They can, consequently, make a claim of discrimination under US law if they believe they have been treated unfairly.
- Corporate taxes are levied at many levels of government, from federal and state levels down to individual municipalities. Corporations also consider taxes like the Federal Alternative Minimum Tax and, depending on their business structure, they may need to collect sales and use tax at the point of the consumer purchase.
- It is not uncommon for companies to “outsource” the HR administration (payroll, employee benefits) to a third party in so-called “co-employment” arrangements. A Professional Employer Organization (PEO) names three partners in an employment relationship — the employee, the underlying company, and the third-party PEO firm.
The American tax system is notoriously complex, and the IRS is known for strictly enforcing the complex array of federal, state, and local rules. Companies are still assessing the 2018 tax reform that changed the rules for corporations and individuals earlier this year. Among the changes: cutting the corporate tax from 35% to 21% and moving toward a territorial system of taxation.
50 Individual States
Each state comes with its own set of rules and regulations. This lack of consistency means compliance and administration will vary depending on where you incorporate and operate, the location of customers, where product may be shipped to, whether you’re selling to businesses or consumers, and where you may employ staff. With the rise of remote work, this adds employment and payroll complexity.
New Compliance Regulation
A new anti-corruption legislation, the Corporate Transparency Act (CTA), will take effect before the end of the year, bringing hefty fines for noncompliance. The CTA will require certain corporations and LLCs to file beneficial ownership information with the treasury departments’ Financial Enforcement Network (FinCEN). It will also eliminate anonymously owned and controlled legal entities in the US over a two-year implementation period.
- An untold number of businesses realize success with their US expansion plans every year — and you can too. Our expert-led managed services and technical consulting help you compliantly navigate the complex regulatory landscape in the United States.
- Paired with GateWay, our global expansion management (GXM) system, we empower you to effortlessly manage your international footprint. This pioneering platform unifies all the applications and data you need in a single place for your ease of use.
Learn More About How We Can Simplify Your Expansion Goals