What is the BOI reporting?
The BOI report is a mandatory document established by FinCEN. Its purpose is to identify the persons who own or benefit from a business...
Are you ready to internationalize your business in the United States? These are some tips that you should keep in mind if you want to open up to the largest market in the world.
There are several factors that will be decisive to internationalize your business in the United States: knowing customs policies, establishing distribution channels, understanding American culture and social movements, calculating the costs of introduction, evaluating feasibility, establishing a tax calendar and others. that will be important if it is about opening up to an international market.
How not to fail in the internationalization attempt? We spoke with experts and compiled 8 essential items on the creation of a company in the northern giant.
The product or service is the means through which a company solves a previously identified need. It will be essential to define this item because it is through the product, by-products, or services that a company defines its operability and capacity for action in a given industry.
Some important facts about the American industry: according to the Bureau of Economic Analysis, in 2021, real GDP increased by 5.7%, and these are the contributions of some sectors to the percentage change in real GDP by industry group in that year:
There are several indicators that could shed light when choosing the State where you want to do business. One has to do with demand and the industrial sectors that flourish most successfully in some territories.
To cite a few examples, in Florida, information technology, the manufacturing industry, logistics and distribution operations, clean technologies, and the aviation and aerospace industry are important sectors to enter; in Texas, according to data from the Bureau of Economic Analysis In 2019, the manufacturing sector contributed USD $246,436 million to the GDP of the state, followed by the Government sector with USD $194,079 million, real estate, rent and rents with USD $184,421 million, health and social services USD $116,208 million, Wholesale trade US $147,954 million, and the list goes on, that means, says the report, that the manufacturing sector contributed 44% to the State's GDP in that year. Not to mention that Texas leads the nation in oil refining and chemical manufacturing, and is a global leader in the petrochemical industry.
on the blog How to open a bank account in the USA as a Latin American businessman? We explain how to open a bank account and expand the spectrum of where they could invest according to some economic sectors.
Distribution channels will be important to define the logistics behind each shipment or service provision. These are divided into three, the direct distribution channel, which is executed in a production chain that goes only from the producer to the final consumer; the short one, where the producer, retailer and consumer are involved and, finally, the long one, where the producer, wholesaler, retailer and consumer are involved.
This distribution chain will add value to the product or service, since it is this step where the packaging and, in some cases, refrigeration, or administrative logistics in the case of services, will be essential for entrepreneurs who want, for example, to export or import to and from their countries of origin. That is why defining these channels, hiring the right companies or making commercial ties will be of vital importance for a successful business.
In the United States, two types of companies can be created, LLCs and CORPs, each of which has a different business model that is adjusted according to the needs of each entrepreneur.
Corporations are managed by a board of directors, that means that it is made up of shareholders and that, naturally, they can participate in the stock market; they are legally independent entities, that is, the debts acquired by the company are not the responsibility of directors, investors or shareholders; This model is attractive for investors, since it keeps their personal assets free of commercial debts; income tax, known in the US as income tax, will be 21% of the net profit of the last fiscal year.
On the other hand, LLCs, a business model known in the market for being simple and flexible; keeps personal assets separate from the company, is managed by memberships that are represented by participation percentages; the Income Tax will vary from 10 to 37% on the net income of the last fiscal year. To expand this information and learn how to pay taxes in the United States, we recommend reading: Myths and truths: everything you need to know about taxation in the United States.
This item is one of the most recommended by our experts, since having clear tax dates will avoid fines by the Internal Revenue Service (IRS). To be clear with the dates we are going to recommend the use of technology through applications such as official calendar, issued by the IRS, a federal entity of the United States. The coherence and fulfillment of the objectives of the organization will be well directed if the tax calendar is clear in each of the areas of the company.
The interested parties or stakeholders have to do with all the people or companies that are involved in the execution of the goals of the firm, that is, around the objectives of the organization, both internal and external actors, execute, from their fronts. , activities that are directed to produce and make the gear work correctly.
These actors are divided into two, the internal: employees, directors, unions and owners, and the external: suppliers, society, government, creditors, shareholders, media and customers.
The correct execution of the objectives of the organization will depend on the correct definition of these stakeholders and entities.
In PRODEZK We have specialized, not only in the creation of a company in the United States, but also in additional services that seek to accompany entrepreneurs in their consolidation process: creation of a bank account or Amazon account, amendments, dissolutions, sale of shares, business plan; accounting services, payroll, consulting, annual renewal, appeals, income tax, etc. Being clear about these items and their value will be essential to make the company work and consolidate it in a competitive market that is increasingly open to Latin Americans.
Finally, we want to talk about the barriers to entry, which are, so to speak, each of the obstacles that entrepreneurs must overcome when they intend to internationalize their businesses. To cite some examples, the fiscal economic factors that will be fundamental at the time of taxation, the policies that may affect or benefit your business, the currency and the fluctuation compared to your local currency, a correct evaluation of the competition, making a marketing plan that understands the cultural qualities of its clients and if your business has to do, for example, with import and export, evaluate customs tariffs.