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 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.