There are several benefits that the U.S. government offers to Latino entrepreneurs who want to do business in the U.S.: the policies and the market favor small companies that intend to do business in the largest market in the world.
Many entrepreneurs wonder when is the right time to internationalize their business in the U.S.? What are the determining factors for success in the world's largest market? And, is it easy or difficult to open a business in the U.S. as a foreigner? Well, there are also many answers to these and other questions that arise on the road to internationalization.
First, let's look at some data that will be decisive in the decision making process of a life project that begins with understanding the economic implications, for example, of the Latino community in the United States.
According to LDC U.S. Latino GP Report, the economic output of Latinos in the U.S. is growing faster than the nation's economy as a whole, i.e., while the U.S. had average annual wage and salary growth of only 2.3% between 2010 and 2019, real wage and salary growth for Latinos averaged 3.5%.
That means the Latino community is having a favorable impact on the U.S. economy, among other things, because of this community's demographic growth on American soil, according to the report, Latino homeownership growth has significantly outpaced that of non-Latinos every year since 2010. With an accelerated recovery from the financial crisis and Great Recession, Latino homeownership growth accelerated rapidly beginning in 2014 and has remained high every year since.
This population growth value triggers another series of positive repercussions for Latinos and non-Latinos in the US, including economic output: the leading industry sector of US Latino GDP is education and health, totaling US $446 billion or 16.4% of US Latino GDP, followed by professional and business services with about US $327 billion (12.0% of Latino GDP) and finance and real estate with US $252 billion (9.3% of Latino GDP).
Now that we have seen some data that can shed light on the implications for Latinos in the USA, let's take a look at 5 advantages of starting a business in the United States as a foreigner.
Open a U.S. business bank account.
One of the advantages of creating a business in the United States is having access to bank loans and creating a credit life through a business bank account or a business credit card. Not to mention the benefits, for example, of accessing marketplaces such as Amazon, Shopify, eBay, among others, a multi-billion-dollar business. According to Statista, Amazon's annual worldwide net sales volume in 2021 was above $400 billion.
On the other hand, access to Stripe, a payment platform that will simplify the process of payment through a web page. The solvency and financial history will put your company on the radar of institutions and other organizations in your sector that will benefit the business in the long term. On the other hand, making international transactions in dollars will make contact with suppliers and customers easier. Finally, international investments, an action that will allow you to benefit from currency exchange.
What is important in this item is that both LLCs and CORPs keep personal assets separate from the assets of the company, which means that the debts acquired by the organization do not affect the assets of the partners or members of the board of directors who have a stake in the firm.
It is important to understand that each of these business models operate differently. For example, in the case of Income Tax, CORPs are taxed at a fixed rate of 21%, while LLCs are taxed at a rate that varies between 10 and 37%. Another difference is that LLCs cannot participate in the stock market, since this model is defined by percentages of participation, while CORPs are composed of shares and managed by a board of directors.
Ultimately, this is beneficial because the equity remains intact regardless of the actions that the partners may take or the outcome of market fluctuations according to geopolitical or economic situations.
Reaching a market of more than 330 million people
According to the Censusthe population in the United States is estimated at almost 333 million people, of which California with 39,237,836 is the most populated state, followed by Texas with 29,527,941 and Florida with 21,781,128 million people. The most populous city is New York with a 2021 estimate of 8,467,513 people. Of the total population, there are 62,080,044 Hispanics or Latinos (of any race).
This means that the economic potential of the United States is very high, according to the same entity the average household income is UD $64,994. Just to give you a look at the business sectors, retail and food service sales in the US for June 2022 were US $680.6 billion, representing an increase of 1.0% over the previous month.
Finally, one of the most effective indicators to measure the wealth of a country is the GDP. GDP, let's take a look at some figures:
Accessing e-commerce platforms and using payment gateways
With around 5 billion visits in 2022, Amazon is consolidating its position as the world's leading online marketplace. Ebay, which was accessed by around 2 billion users, was in second place. A giant business that increasingly takes presence thanks to the payment facilities and the security provided by the software at the time of making a purchase, among other things, by the payment facilities, the support at the time of purchase and the democratization that the Internet has undergone in recent years.
Creating a company in the United States will not only allow you to sell your products on Amazon, but also to use payment gateways such asStripe, which will allow you to receive payments from your customers from up to 47 countries while paying a commission of only 1.5% to international payment methods and an additional 2% commission for currency conversion.
Business alliances with U.S. companies
Having a company in the United States provides prestige in the sector in which you do business and reliability to your customers. Ease of payment and little bureaucracy make it attractive to do business in the giant of the north and an example of that is the number ofprograms provided by the federal government to strengthen domestic industry: loans, investment capital, guarantee finances, disaster relief, assistance programs for hiring, training centers, business centers for women and conventions where commercial alliances will flourish. It is important to clarify that alliances can be made not only with public organizations, but also with private organizations such as Walmart.