How to open a company in America - part 1

How to Start a Business in America - Part 1

Last Updated: August 11, 2023By Tags: , ,

Signaling to Brazilians who want to invest in the country or open their own business, a American Dream Magazine sai na frente, starting with this edition, showing the way to a safe landing.

It happened on the day 21 October of 2022 the second VLM Press Men of Great Value Professional Excellence awards ceremony. The event was marked by several elements that made it even more special.. This year, VLM Press understood the award to American professionals and specially invited them to receive an award from VLM Press for the first time, o Sheriff Gregory Tony e o capelão do BSO – Broward Sheriffs Office, Apostle John Mohorn. This element alone made this year's ceremony a hit.. But we were surprised to be informed of the participation of agents from the FBI – Federal Bureau of Investigation who were present at the event, to corroborate the delivery of a commemorative plaque in special honor to Sheriff Gregory Tony, who was chosen among the top 25 Sheriffs americanos. The ceremony was a great moment of recognition for Sheriff Tony, who was initially appointed by Governor Ron De Santis and later elected by popular vote.. Since taking over the BSO, Sheriff Gregory Tony has been a major factor in transforming the Broward police force in Florida, and the FBI – Federal Bureau of Investigation award only reinforces this reality.

This year, VLM Press presented thirteen awards to men of great value who stood out in 2022 for your performance, moral principles, character and professionalism. Among the winners, eleven Brazilians were honored in a memorable celebration that filled the eyes of those present with enthusiasm and the strong desire to be among them.

Starting a business in the United States as a foreigner can seem like a huge challenge and a long way to go., But not quite. America offers conditions that facilitate the process of registering and running a business. Perhaps the biggest barrier you may face is the language, because the basic requirement is to speak English, if you plan to do business with Americans. Know however, that there are currently consultancy services offered by reputable Brazilian companies, good reputation and years of extensive experience.

Establishing a company in the United States is a good way to expand your business, and to do so you do not need to be an American citizen or operate a foreign company. However, It is important to know the business structures available and which scenario your company best fits into., aware that this is a decision that needs to be made with the advice of an experienced professional who can point out the most appropriate and advantageous model for your business structure, mainly with regard to taxation, among other relevant factors, as social responsibility, insurance, profit distribution etc.. One of the most common business structures is the Limited Liability Corporation, LLC (Limited Liability Corporation).

Many of the procedures and requirements are similar to those related to forming a company in Brazil, except that a U.S. corporation is subject to the specific requirements of the corporate law of the state in which it is incorporated. Like this, for example, a U.S. corporation incorporated in New York may have certain restrictions imposed by New York corporate law, which are different from a company in Florida. Foreign investors sometimes choose to establish a C Corporation (C corporation) which can expand by offering unlimited shares and is typically more attractive to outside investors, although profits are taxed twice, first at the corporate level and then, as dividends distributed among shareholders. For corporate shareholders, The advantages generally are that you typically qualify for lower taxation on dividends; and while the North American company does not primarily own real estate, the corporate parent will not pay capital gains when it sells the US affiliate. Even foreign sole proprietors will likely be better off with a C corporation, since the C structure will protect them from direct IRS scrutiny.

Obviously, owners of this business structure pay more for this protection as a result of the way they are taxed. But, In so many cases, tax planners can use salaries, pension costs and other expenses to reduce corporate income and eliminate much double taxation. On the other hand, generally depending on the particulars of native tax laws, uma Limited Liability Corporation (LLC) may be the best business structure, because partners without administrative control have limited liability, profits are passed on to partners, who pay income tax on their individual declaration.

A Foreign Corporate Affiliate

A foreign company may establish a branch office in the United States to conduct its business activities, despite the majority of foreign companies choosing to form subsidiary companies for tax and non-tax reasons. Most countries have the ability to subject foreign companies to domestic taxation if they form a branch, open an office, employ employees, maintain inventory or fixed assets; or otherwise conduct business activities in the U.S.; which allows federal and state tax administration to evaluate foreign corporations as if they had an establishment considered permanent.

Both federal and state governments have the concept of taxable income “effectively connected” to a source in the United States, What if a foreign company has “effectively connected” revenue, the foreign corporation will be subject to United States tax on that income, in the same way as a U.S. domestic corporation. Furthermore, with 25% or more of a foreign company's gross revenue is effectively connected, any dividends paid by the foreign corporation to a non-U.S. resident will be subject to U.S. withholding tax, unless an applicable tax treaty provides otherwise. U.S. tax law also imposes a corporate branch income tax. 30%, plus corporate income taxes, about US branch earnings and profits, of a foreign company measured annually. Tax on branch profits can be reduced or eliminated entirely if a treaty allows it.


General and limited companies can be formed, normally through a written partnership agreement, which is usually registered under state law. For legal purposes, a partnership is defined as an association of two or more people as owners, formed to develop a for-profit company. As defined by US tax law, a partnership includes a union, consortium, joint venture or other unincorporated organization, in which any business is conducted, and that is not, for federal income tax purposes, a corporation, trust or estate. Each state and the District of Columbia have their own laws governing the formation and operation of partnerships.

Partnerships are treated as conduits for US income tax purposes, and each partner recognizes a proportionate share of the revenue, loss and credit, whether or not it is distributed to partners. Partnerships allow a lot of flexibility in allocating profits and losses, as well as in the distributions. Any partnership engaged in a trade or business in the United States, who has foreign partners, must withhold U.S. taxes on the distributive share of the foreign partner's business income.

Company Structures

When starting a business, you must decide what form of business entity to establish. The chosen business structure influences everything, from day to day operations, taxes and how much of your personal assets are at risk. You should choose the model that offers the right balance of legal protections and benefits. Your type of business especially determines which income tax return form you need to fill out.. The most common forms of business are Sole Proprietorship, Partnership, C Corporation and S Corporation. A Limited Liability Company (LLC) is a business structure permitted by state statute. Some legal and tax considerations are part of selecting a business structure. In the next edition, we will talk about the different most common business structures, its advantages and disadvantages and how to open your first company. If this subject interests you and you want to know more about opening a business, business models and what it takes to start your own business, send us an email at: or speak directly to the author.

Before even venturing into the business model you want to adopt, It is essential to know exactly what to undertake.”

Before choosing the entity you want to form, Entrepreneurs interested in the American market need to know exactly what product or service they want to offer, and obviously, whether there is a market for this product or service. I will talk about Business Plan in another article.

In the next issue of American Dream Magazine, I will talk about the different most common business structures, its advantages and disadvantages and how to open your first company.

If this subject interests you and you want to know more about opening a business, business models and what it takes to start your own business, send us an email or speak directly to the author.

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