Starting a business in the United States

The US boasts the largest economy in the world, with a Gross Domestic Product (GDP) of $27.36 trillion in 2023 (World Bank). It ranks highly in terms of market size, financial system, and innovation capability, offering businesses ample opportunities for growth. The US is home to the world’s most prominent stock exchanges which list some of the largest companies globally. The country’s vast consumer base and diverse markets provide businesses with substantial opportunities to thrive.

Additionally, the US is one of the world’s largest manufacturing and distribution hubs, enabling easy access to capital and investment. The country has a well-developed financial infrastructure, offering a wide array of funding options for businesses of all sizes, from venture capital and private equity firms to crowdfunding platforms. This robust system supports both startups and established enterprises, fostering a favourable environment for innovation, growth, and long-term success.

The US corporate tax system is structured at multiple levels, including federal, state, and in some cases, municipal levels. The federal corporate tax rate is set at 21%, which remains competitive among major global economies. Note that businesses might face additional state-level corporate taxes.

Beyond corporate income taxes, municipal-level taxes such as sales tax may apply depending on the location and nature of business operations. These taxes add further complexity but can be managed effectively with proper planning and sound advice.

In 2023, the Internal Revenue Service (IRS) introduced inflation adjustments to over 60 tax provisions, further aiding businesses in managing their tax liabilities. Companies can also benefit from various tax credits and incentives, such as research and development (R&D) credits, energy-efficiency deductions, and industry-specific deductions that help reduce overall tax burdens.

Moreover, the US has established an extensive network of tax treaties with numerous countries, reducing or eliminating double taxation on certain income types like dividends, interest, and royalties. These treaties enable international businesses to operate more efficiently within the US while minimizing tax obligations on a global scale.

The advanced banking system in the US provides new businesses with easier access to loan facilities and financial services, supporting growth and expansion. Additionally, the US dollar is one of the most stable and widely accepted currencies globally, making it ideal for international transactions.

Opening a bank account in the US is a relatively straightforward process for both local and foreign entrepreneurs, simplifying business operations. While banking fees can vary by institution, many banks offer competitive services with low fees, particularly for business accounts.

Besides banks, the US also offers a wide range of payment processing options such as Stripe, PayPal, and Shopify Payments, catering to both online and offline businesses, offering more flexibility to your business.

The US legal system is one of the most well-established globally, offering robust protections in areas such as intellectual property through the US Copyright Act and contract enforcement under the Uniform Commercial Code.

The US has a transparent regulatory framework and extensive network of free trade agreements (FTAs), including the United States-Mexico-Canada Agreement (USMCA), Central America-Dominican Republic FTA (CAFTA-DR), and other bilateral agreements with global economies such as Singapore, Australia, and Korea.

In recent years, the US has adopted tariffs and trade restrictions, particularly targeting China, as part of its broader trade policy. While these measures aim to protect domestic industries, they also provide an incentive for businesses to establish operations within the US to avoid tariffs and benefit from local production advantages.

These legal protections foster confidence in doing business in the US and support smooth operations for both domestic and international companies.

The US boasts a highly skilled and diverse workforce, with diverse talent drawn from some of the world’s leading universities and research institutions. It is home to a vast pool of talented workers across a wide range of industries. The US also attracts global talent through its flexible immigration policies, including the H-1B visa program, which enables companies to employ skilled foreign workers.

The US consistently ranks among the top countries for R&D, fostering an environment where businesses can thrive through innovation, technological advancement, and access to top talent.

Major hubs like New York, California, and Texas have well-developed infrastructure, offering businesses efficient transportation, communication networks, and logistics systems.

Additionally, cutting-edge digital infrastructure, including widespread high-speed internet and cloud-based technologies, supports business operations in the modern, tech-driven economy. However, note some regions in the US are still in the process of modernising their infrastructure to meet evolving business needs.