Owing to the ease of conducting business and competitiveness, the United States is one of the best places for freelancers to start a company. The US regulatory environment is especially conducive to establishing a business and its culture encourages enterprise creation. Despite the challenges the country has faced in recent years, there are still numerous benefits of founding a company in the USA that will increase your chances of succeeding as a freelancer.
Why Starting a Business in the US Is Your Best Bet
Here are the main reasons why setting up a freelancing business in the US is a wise decision:
America is known for investment opportunities, such as more affordable real estate than most other popular countries worldwide. Additionally, the USA’s large population (over 320 million people) gives freelancers access to a larger customer base. There are various interest and income diversities that you can target, regardless of what you market.
Tax Benefits and Other Incentives
Many cities and states offer various incentives to freelancers establishing a business. Some of them come as tax credits. In particular, the USA has become more accommodating toward foreigners buying real estate with lower commercial taxes. Moreover, there’s a range of support available to businesses available during the formation stage.
Numerous Market Options
Each state in the USA wants to expand its business environment, which is why many cities motivate people to set up companies in their communities. There are basically limitless options for establishing your freelancing organization and you can decide on the climate and terrain that matches your interests.
On top of that, America has agreements with many countries, which can be a boon to any company. Apart from Americans, you can also sell your products or services to hundreds of millions of people across the globe.
Cutting-edge technology is one of the USA’s strongest suits and many freelancers start their business here just to access it. This way, they can enhance many facets of their companies, such as communication with their customers.
Intellectual Property Protection
America leads the way in enforcing intellectual property protection for US companies. The US Patent Office enforces stringent federal laws that provide top-notch protection against all forms of infringement.
The USA Promotes New Ideas and Innovation
One of the most significant benefits of being a freelancer in America is that the country fosters new ideas. Many other countries are reluctant to accept innovation, which may inhibit the growth of new companies. Conversely, Americans embrace different solutions and rarely make rash judgments on which business decision is the right one. Your organization can quickly thrive in such an open-minded atmosphere.
Some countries are all about formality in their business operations. A typical example is Germany, where you’ll seldom find people calling their colleagues by their first name, despite working with them for years. This formality indicates that people think differently about everyday assumptions and interactions.
On the other hand, Americans tend not to be obsessed with job titles and social niceties. While this may make the environment less polite than other cultures, it also means that the residents are impatient for actions. As a result, you can be more productive and make faster breakthroughs.
America Appreciates Immigration
Admittedly, America’s immigration policies are controversial and the country could make significant improvements to allowing talented foreigners to pursue their dreams here. However, the USA is more welcoming to immigrants than many other nations. For instance, Japan is nearly entirely homogenous and reluctantly seeks out immigrants who would work there. Also, Europe receives a lot of immigrants every year but doesn’t do a good job of integrating them into their society, making it difficult to start a business.
This is not to say that all immigrants have it easy in America, but its open society makes it much easier to succeed as a freelancer. The culture here is more flexible, which is why you can get accepted soon and start establishing business connections.
What is more, foreigners registering their companies in America can facilitate their immigration process. In particular, the government can issue them a work or business visa. For instance, you may be eligible for an L-1 (intra-company transfer) visa. Alternatively, you can also get your EB-5 visa, also known as the USA’s investment green card.
The Ability to Open a Business Bank Account
Even though freelancers aren’t mandated by law to have a business account, opening one comes with numerous benefits. You can keep track of your expenses and simplify the process of filing your annual tax returns. Additionally, an account lets you receive Amazon payments under its referral program.
However, if you’re a non-resident without a company, setting up an American business bank account is almost impossible. The largest banks generally refuse to open a corporate account for a foreign company due to compliance matters.
Hence, starting a business in the US is a must if you want to use a corporate account.
The Rest of the World Admires America
Despite the USA’s military interventions in various countries, the country still manages to influence people and win over their admiration. Foreigners look to replicate many aspects of living in America, such as culture, food, and music. As a result, American companies draw more attention than others, providing you with more people that you can target with your products or services.
US Companies Are More Trustworthy Than Offshore Businesses
One of the biggest obstacles confronting offshore companies is the lack of trust among clients. In contrast, American businesses are much more attractive because people find them extremely reliable. Offshore jurisdictions, such as those in Asia and Europe, don’t enjoy the same level of reputation as US companies. Therefore, America should be your first choice when registering a freelance business.
Furthermore, Americans generally prefer dealing with companies from their country rather than foreign. Accordingly, no Cypriot companies (for example) would be viewed in the same light as a company registered in Delaware. The reason why we’re bringing up Delaware is that the state presents a nearly perfect environment for setting up a company. Bear this in mind when starting your freelance business.
Even if foreign businesses are successful, founding a US company is likely a better choice. This is because Americans are more eager to enter into agreements with domestic companies. In this case, resolving difficulties and settling disputes will be done at home and not someplace overseas.
Eventually, you may need to get funding from American banks. To be granted a loan, a bank will have to go through your business credit history. An additional requirement might be that your company has to conduct operations for some time. If you don’t meet these requirements, your application will be declined.
So, make sure to start your freelance business as soon as possible so that you can build your credit history sooner and obtain loans when necessary.
From time to time, businesses could use external investments. The US market is perhaps the most attractive destination to find investors and business partners. Again, setting up your business in the US is much better than doing it offshore. Otherwise, investors would be reluctant to finance your company since they wouldn’t be able to check its history or determine whether the investment pays off.
Conversely, getting reliable information about American companies is simple. All you need to do is visit a government agency website, such as that of the US Securities and Exchange Commission (SEC). For instance, investors can use this method to see if you’re incorporated in Delaware or other business-friendly states.
The USA Is a Freelancer Paradise
If you had any doubts about whether opening a business in the US as a foreigner is a wise choice, all your concerns are now dispelled. This amazing country offers ample opportunities for you to set up and grow your freelancing business. There are tremendous tax benefits and the country fosters innovation, allowing you to showcase your creativity to the fullest. Plus, US companies enjoy greater customer trust worldwide, eliminating various reputation concerns offshore companies are plagued with.
So, start freelancing in the USA now and reap all the benefits of the incredible business environment.