Once you decide to incorporate in a foreign country, you must be aware of the advantages and disadvantages of the state in question. Non-US entrepreneurs often choose the land of opportunities in matters of incorporating their companies. Here are five things you should know before moving your business offshore.
- A USA Corporation offers protection of personal assets
A US Corporation is a stand-alone entity which provides the advantage of opening a US Business Bank Account that separates your other incomes and personal belongings from your US profits. That means you are not personally liable for any assets and debts of your business in case of lawsuit or debt creditors.
- Consumers are confident in buying from a US Corporation
Business owners willing to expand and sell on the US market must take into consideration their targeted audience. American consumers are more eager to buy from companies registered in the USA and which are subjected to the US law. This aspect applies to e-commerce businesses also.
- The USA has a larger investor base
Whether you are a non-resident or a national resident, startups need financing. Most times, funding comes from convincing someone to invest in your business. With some of the world’s most business-friendly environments, the USA provides a large and varied base of investors eager to invest their money in US registered corporations.
- A US Corporation benefits from cost and tax reductions
An important aspect, entrepreneurs are interested in when incorporating, is what costs implies. Some US states offer significant reductions for US registered Corporations in terms of costs and taxes, especially when choosing an incorporation company registered with the Secretary of State’s Office. Moreover, the incorporation company can provide you with a registered agent to help you with the required filing and taxation.
- A US Corporation can be passed on to future generations
One of the advantages of owning a US Corporation is that it doesn’t die with its owner. Because a Corporation is a stand-alone entity, it lives on even if it is dissolved or merged with another company. To avoid inheritance taxes, it is better you distribute your stock to your heirs during your lifetime.
Each business is different and is better to better to approach incorporation in the context of your overall business objectives. Make sure you are well informed about the state incorporation laws and taxation considerations. Moreover, analyze if you have the skills to manage a business from overseas and choose the right incorporation company to facilitate the process.