5 US Incorporation Mistakes Global Entrepreneurs Must Avoid” is more than just a cautionary list it’s a wake-up call for those eyeing the US as their next big move. The US is still seen as the ultimate benchmark for identifying a business as a global initiative. For many with international ambitions, it represents the ultimate prize. a dynamic market, lucrative consumer base, and undeniable allure. However, navigating this geography is highly complex. We learn mostly from our mistakes, but a few are simply non-negotiable. Here are the top 5 mistakes that entrepreneurs make while expanding their business to the US and how you can avoid them. Mistake 1- Choosing the Wrong Business Structure While there are various structures of businesses available, for a Non-Resident, the US has two business entities to offer- (i) LLC- Limited Liability Company (ii) C-corp- C- Corporation While both offer their separate conveniences, choosing the right one as per your business needs is necessary. Not all the time an LLC will help you thrive and not all the time it is the best worst possible way out. An LLC is very similar to an LLP in India, While a c-corp is a separate legal entity. Your business needs attention, book a free consultancy to know more about choosing the right structure. Mistake 2- Underestimating the Importance of Local Presence Expanding your business to the US? Then why do you want to stay limited to a paper company? Many founders overlook the idea of having a physical presence. It is something that makes the company credible in the eyes of customers, vendors, or investors. For a matter of fact, even vendor-onboarding requires a local presence? Would you really want to miss that opportunity? Not having a presence on the US soil can result in- Delayed client onboarding, no virtual as well as physical payment address or bank account and maybe catching the chargebacks as a sham company. Along with that, having a visible (physical) presence can also help you achieve local networking. And now as Indians, no one knows the value of the local network more than we do. Pro Tip– A physical office and a U.S. phone line can do wonders to your business. Call us now to get a physical address at the ease of a few dollars. P.S. we not only give you an address, but we give you a shelter in rain- our on-ground support is unbeatable. If you want to read more on Physical Presence, read out our next blog- (blog on local nexus) Mistake 3- Ignoring the Tax Complexity Unlike India, each state in the US has its own tax structure. You may owe different taxes in different states. Some states do not have any state income tax, while some charge hefty amounts. Understanding this can be very complex, but then you are a business owner, your job is to help the business flourish, our job is to support you with that. Here are a few tips you can keep handy as an Indian Citizen running your business in the US: DTAA- India and US have signed a treaty called Double tax Avoidance Agreement. Taking advantage of this,once you have paid the taxes, you may not have to pay the taxes again in your home country. Franchise Taxes- Also called privilege tax, is charged by some states in the US, irrespective of your annual income. It is advised, while choosing to run the business in initial days, you pay attention to these minute details. To read more on US Taxation, visit this- (blog on taxation) To get your queries addressed, reach out to us here. Mistake 4- Poor Banking and Payment Setup For the ease of opening it, people often mistake virtual bank accounts as their go to solution. While it may look lucrative in the beginning, it might not be the best idea for your business. Along with that, be it virtual or physical, both require physical presence in the US, so why not go with a physical bank account and initiate the golden era of our business. Physical banking definitely comes with its many benefits- ease of transaction being one of them. Of course, traditional banking always wins. A virtual bank- driven by technology might get shut at any moment, all your funds frozen right there. You may think that this blog is to scare us, but trust us, there have been numerous instances where virtual banking failed the idea of ease of doing business. Let us know if you need any help with your banking, and we will be happy to assist you. Mistake 5- Failing to Protect Intellectual Property Neglecting intellectual property will not only open doors for the thieves, but will also bring disgrace to your brand goodwill- which you have built with sweat and labor. Registering your trademarks and patents is non-negotiable for safeguarding your innovation, your good will and your business. US IP Law favors the first to file, not the first to use. Without protection, you are risking your brand identity. Do you want that? We believe the answer to that is a straight no. To avoid this, along with registering your Intellectual Property, it is advised that you start signing NDAs and adding IP clauses in your agreements. We as Consultants not only help you set-up your company, but we also give you end-to-end services. Let us know your willingness to save your Intellectual Property, and we will be there assisting you with it. Conclusion Our job is not to just launch the business, but also to promote and help it run safely in the long run. Because owning a great service or product might not be the key to success- you need to give close attention to the process involved. And while you are too busy running the business, let us give you the backend support required to enter the flourishing era. Let’s stop blindly following the “Wyoming LLC in 24 hours” and start taking informed decisions about the right..
