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...
Since 1949, during the second session of the United Nations Economic Commission for Latin America, the United States established in Latin American territory a policy that sought to promote foreign capital investments for the economic development of the region, a fact that split the history of Latin American countries in two; it set a precedent for what was to come for a territory considered, from the foundations of its early history, 'peripheral': exporter of raw materials.
This tendency towards the non-transformation and accumulation of raw materials has been changing: Latin American businessmen have been able to transform, innovate and vehemently step on the different world economies, such is the case of the US economy, some examples, Bimbo, the world bakery that has managed to consolidate not only in Latin American countries but also in the United States: about 48% of its worldwide profits are in this market.
Another important case is Grupo Lala, a Mexican company focused on the health food industry, considered the fifth largest dairy company in the world, and in the United States, the second largest, a place where they have grown vertiginously, especially after the financial crisis of 2008, when the price of milk was reduced by up to 35%.
The tenacity and entrepreneurial vision towards the transformation of Latin America has made the doors of the U.S. market open to entrepreneurs who contribute, and how, to its economy: by the year 2020, 4.4 million Latino-owned businesses contributed more than US$ 700 billion to the U.S. economy.
That's why today we want to give you some tips and advice to help you recognize when your company is ready to set foot on American soil:
Let's start with the basics: any Latin American entrepreneur who wants to open a company in the United States, at least one of the partners must have an American VISA, this will allow him/her to open a bank account and travel, if necessary, to the state where he/she wants to establish and do business.
On the other hand, it’s important that you know not only the geography of the country, but also the economic ecosystems that are and continue to flourish in the United States. For example, the main sectors in the U.S. economy are those related to Software Development, Digital Marketing, Website development, Real Estate, E-Commerce; the export of textile products, processed food and flowers; the import of products such as auto parts, industrial products and machinery; the automotive industry: rental, car washes, auto parts; and logistics services.
The most important sectors in the United States are those related to services, which account for 80% of the country's GDP. The industrial sector accounts for 19%, while the agricultural sector (corn, soybeans, beef and cotton) contributes only 0.9%. Other important sectors are the construction sector, which by 2021 was estimated at approximately US$1.5 trillion.
Other important sectors are the manufacturing of machinery, chemicals, food and automobiles; a flourishing tertiary market focused on finance, new technologies, insurance, real estate, rentals and leasing. The U.S. agricultural sector is undoubtedly one of the largest in the world. California alone, for example, produces more than one-third of the country's vegetables and two-thirds of its dried fruits and nuts.
It’s important to have the sector defined, as some states are, so to speak, specialized in areas that enhance the economies offered by these companies, for example, California, with almost 40 million inhabitants, is the state of financial services, commerce, transportation, education, health and other services that have to do with leisure and hospitality.
Texas, on the other hand, is one of the world's leading destinations for foreign direct investment (FDI), with 32 free trade zones and more than 1,500 foreign corporations with ongoing operations. It is the second largest economic power in the U.S. after California. Texas' GDP represents 8.81% of the national GDP.
Florida, the fourth state that generates more GDP in the United States, 1,095 million dollars by 2020, is an excellent option for Spanish-speaking entrepreneurs who intend to internationalize their companies, since the language barrier will not be a problem, according to a report published by The Hispanic Council, "the use of Spanish in the United States has surpassed the figure of 57 million Spanish speakers. In demographic terms, the population of Hispanic origin has surpassed 62 million people in the United States and represents 18.7% of the total population (more than 331 million inhabitants)".
Coming across new tax regulations may seem cumbersome at first, not least because the U.S. is very strict with its tax policy. The Internal Revenue Service, or IRS, is the federal agency of the U.S. government in charge of tax collection and compliance with tax laws. Having strategic allies such as Prodezk to accompany and manage, for example, the creation of the company, tax returns, annual renewal, manage the bank account or accounting will be essential for the proper operation of the company.
According to the third edition of the annual EBANX study, Latin America is one of the fastest growing e-commerce markets in the world, and there is no sign of slowing down; a growth that is expected to grow by 30% every year until 2025; All this, the result of a global dynamic that forced people to buy, pay and transit in general by the hundred opportunities offered by the digital universe, and the United States is no exception, Amazon, the American giant, has demonstrated the potential that the marketplace propose, in 2021, for example, had an annual revenue of 469.82 million dollars, this, according to the German portal Statista GmbH.
Stakeholders, or interested parties, is a concept that has an increasing impact among Latin American businessmen who see and understand their company with a holistic vision. Also understood as a Business Plan, this business strategy will allow the owner to bring together groups or organizations that are affected by the actions and decisions of the company.
It works from two fronts, the one that has to do with internal processes, comprising: employees, managers and owners; and the ones that cover external processes: suppliers, customers, creditors, shareholders, society and a super important item when you want to internationalize your company: the government, since becoming familiar with state and federal policies will make the processes easier, for example, taxation.