Starting a Business in the US
Depending on which state or city is chosen for registration, the cost & time of registering a company in the US may vary. Each state has its own rules & regulations according to registration procedure must be followed
Obtaining Permits in the US
Let’s consider 2 cities - New Tork (East Coast) & Los Angeles (West Coats). Obtaining a building permit in New York requires following 15 procedures (e.g. providing zoning schemes, obtaining permits for connecting to water supply & sewerage systems, connecting to electrical networks, obtaining work permits, etc) & takes 90 days. Many licenses are quite expensive & can cost up to $5,000. Getting connected to the electricity grid in New York takes 60 days.
Obtaining a building permit in LA costs more than $48,000 & takes 68 days. It also requires following 17 procedures. Connecting to water supply & sewerage systems may take up to 40 days & cost more than $3,000. Getting connected to the electricity grid in LA can take as long as 130 days.
Registering Property in the US
Registering property in New York can take approximately 10-14 days. The whole procedure is divided into 4 stages, the first two are carried out by private companies, while the remaining two (i.e. transfer of forms & registration of property rights) are carried out by government institutions.
Property registration in LA takes 20-22 days & requires following 5 procedures. Environmental inspections can take up to 2 weeks & require involvement of 3rd parties for obtaining insurance policies.
It’s quite easy to get a loan in the US. There’s strict rules & regulations protecting the rights of both borrowers & lenders.
Investor protection in the US is ensured by a strong regulatory framework. Specific laws are in place to help increase corporate transparency, reduce the risk of fraud & provide shareholders with special rights. All regulatory activities are handled by the SEC whose main task is to protect investors & investments.
The US taxation system is represented by a set of rules enforced by the IRS. Because the country is a federation, its tax system is multilayered & consists of federal, state & local taxes. Federal corporate tax is 21%, while corporate taxes levied by states can range from 2.5% to 12%.
The US has 2 major cross-border trading partners - Canada & Mexico. The three countries have recently concluded the USMCA treaty which aims to balance their interests in the automotive & agricultural industries, ensure IP protection in the US, as well as labor & environmental rights.
Unlike its neighbors, the US is far more aggressive in protecting its industries & increasing tax revenues. Nevertheless, it has an attractive market for foreign companies seeking to offer their goods and services to US consumers. At the same time, US companies are looking to foreign firms for new solutions, technologies & skills.
Execution of Contracts in the US
Resolving financial disputes in the US is normally done by way of litigation. Enforcement of court decisions related to compliance with contact requirements can take about 350-370 days.
Resolving Insolvency Issues in the US
The process of resolving insolvency in the US can take about 1 year.
Americans value their time; therefore, they prefer to solve all issues during personal meetings or by telephone. They believe that everyone has the right to independently determine ways of achieving success based on their abilities & talents. US companies tend to focus on short-term results rather than strategic goals. Working hours in US companies tend to be longer than in other countries. US workers tend to take fewer vacation days, because they regard time as a very valuable resource.
Looking to open a company in the US? Need advice on company registration in the US? Why not contact IQ Decision UK?