Before Starting a Business in the U.S.

Starting a business in the U.S. itself is a serious business …

The United States is one of the largest and homogeneous markets in the world, with its wide geography and consumer base open to new products and services. The U.S. market, where consumption culture is extremely influential, has a wide consumer base that can be reached with a single language – despite its multicultural structure and ethnic diversity. It is regulated with investor-friendly rules, and hence has always been attractive to entrepreneurs.

However, like any other investment, starting a business in the U.S. comes up with some risks.

A business opportunity thought to be great at first can result in serious financial losses and disappointment if all possible risks have not been assessed in a timely manner.

For example, acting too quickly to start investments – assuming that the same product or service that is in high demand in your home country can also be sold immediately and in large numbers in the U.S. – may cause your business idea to fail.

Acting fast or making a high level of investment in the U.S. market is not a guarantee of commercial success or profitability. Rather than a high investment level, it is quality market research and a business plan which is the primary assurance of your investment in the U.S.

Thanks to quality market research and a sound business plan, you can find out that you need to change your current product or service (sometimes drastically) to reach your target consumer group in the U.S. In some cases, you may see that your target consumers in the U.S. are limited to only certain States. Accordingly, you may initiate your agreement with a local sales agent, or do your search for an office or a warehouse as being limited to those State(s).

You need to think about several procedures thoroughly, and in advance, and plan and manage them well. For example:  

• Whether you will enter the U.S. market by establishing a new company, or by acquiring some shares or the whole of an already established U.S. company,

• What business form you will choose to incorporate, in which U.S. State, and at what time of the year,

• At what stage you will have your trademark registered,

• How and when you can get required permits or licenses for your sales,

• When and through which channels you will start sales and marketing,

• From where (from which country / city), with which team (Turkish and/or American) and with which strategy you will manage and grow your business.

What is your purpose? The most suitable job for you in the United States can be decided by considering your business and immigration goals together.

In addition, if you are thinking of gaining a specific immigrant status for yourself and/or your relatives through your company, setting the roadmap for this goal in the early stages will save you and your company invaluable time and cost.

✔

Especially “tax” is the most important issue that should be planned well before starting a business in the U.S.

However, it is often observed that investors consider the taxation of both the company in the U.S. and the (parent) company abroad at later stages. For example, both individuals and companies can benefit from some deductions or exemptions based on the double taxation agreement between the U.S. and Türkiye.

• How is a Turkish citizen, or a business headquartered in Türkiye taxed in the U.S.?

• How can you legally avoid such taxation?

You may learn in advance about all available taxation options that may arise according to different business forms or partnership structures, and you can decide on your desired corporate structure according to these options. Regarding these issues, you can consult our U.S. taxation professionals at all stages.

Disclaimer: Questions & Answers or blog posts on our website are not legal opinions. Our company does not accept any liability in case of any loss occurred due to the use of the content presented on this website.

We would be pleased to receive your questions, feedback and suggestions regarding blog posts and similar content on our website.

Photos 📸 Andrea Piacquadio, Anna Shvets @pexels;