The United States offers many benefits to businesses. The business climate in the US and its global reputation as an economic powerhouse holds immense benefits for US companies. If you’re wondering how incorporating a company in the US benefits your business, this blog post is for you.
1. The largest market in the world
The US is the world’s largest market in the world with a GDP of $20 trillion and a population of 325 million people. It is also the most robust consumer market on the planet with purchases shooting beyond $13.3 trillion in goods and services in just 2017 alone. This is more than a quarter of the entire world’s household consumption.
With a US-based business, you can potentially reach a huge market of consumers you may otherwise not have access to if your company wasn’t incorporated in the US.
2. Access to a wide range of funding sources
The United States offers a wide range of funding sources for businesses. This access to capital – from banks and investment firms to venture capitalists and angel investors – is another important reason founders choose to set up in the U.S. market.
By setting up a company in the US, you can access a plethora of short and long-term investment options and increase your chances of success.
3. Access to premium financial services
Any business looking to grow needs access to premium financial services. The US has the best financial infrastructure in the world and makes it readily available to US businesses. From global payment platforms like Stripe and Paypal to efficient banking systems and financial markets.
Incorporating your company in the US avails you of this robust finance and banking infrastructure. As a foreigner, you may find it difficult and sometimes impossible to utilize these resources.
However, by registering your company in the US, you can open a US business bank account, process customer payments from anywhere in the world using platforms such as Stripe and PayPal, access credit from a US bank, attract investment to your business, etc. More banks will trust you and want to do business with you because your company is a US entity.
If you have an eCommerce business, owning a US-based business makes it much easier for you to do business on US platforms like eBay, Amazon, and Walmart because their policies tend to favor US companies.
4. Trust and Credibility
Today many foreign businesses do business with US companies or entities. Incorporating your business makes it easier for these international companies to conduct business with you. Having a US business can boost the reputation of your company tremendously.
The US is well known for having the best economy in the world. International organizations feel more confident trading with US companies. This is also true for investors who are assured that their investment is better protected in a US-based business.
Having a US entity also brings you consumer trust and brand credibility. US and international consumers feel more confident buying from US companies.
5. Ability to sell on global eCommerce platforms
We mentioned this earlier but let’s dig a little deeper.
One important benefit of having a US company is that you are able to sell your products directly on eCommerce platforms like Amazon, eBay, Walmart, Shopify, and Etsy.
Secondly, a US company also removes all the typical restrictions many sellers outside North America, Europe, and a few Asian countries face on these platforms.
Let’s talk about payments as an example. Shopify allows US companies to collect payments from customers directly from the platform through Shopify Payments.
However, Shopify Payments is only available to a select number of countries including the United States.
Sellers from other countries need to integrate a third-party platform to collect payments on Shopify.
As a US company, you can decide whether to use Shopify Payments or a third party. You get to pick which gateway works best for you and your customers.
Platforms like eBay, Amazon, and even Etsy have certain restrictions for foreign merchants. However, with a US company, you have nothing to worry about.
6. Opportunity to live and build your business in the United States
This benefit is for Nigerian and other non-US founders who would like to live and build their dream company in the United States of America.
Launching a US company gives you an opportunity to migrate to the US with your family through O-1 Visa.
The O-1 Visa is a special visa program for founders and other extraordinary achievers.
With the O-1 Visa, you can live in the US for three years while you build your company. You can also renew your visa or even transfer to an immigrant visa so you can stay in the US permanently.
Looking to incorporate a company in the US? Kwanza can help. Click here to get started.
