Buying a US Business By a Foreigner -

The USA is an attractive country for many reasons: a well-developed economy, the largest number of millionaires in the world, the American Dream, and ample opportunities for product sales and fundraising. The country is interested in attracting foreigners, so there are several low-tax states where you can register your company for example, Delaware, Wyoming, and Florida. And if you have always wanted to have a business in the USA, its time to find out more about it.

Venturing on your own may be challenging, so a dream remains just a dream for many people. However, we offer support at all stages for those who want their dream to come true. Welcome to our portal where you can read a more detailed article for foreigners buying a business in the USA and find much more information on different aspects of business. We have qualified specialists who will help you buy (or register) a company in the USA and open a bank account there. Let us be your guides in a new country, and success is inevitably on the way!

Reasons to Buy a Company in the USA

We often hear that the USA is a country of opportunities. Lets see what opportunities it provides for businesses:

Strong economy. It has easily recovered after the coronavirus pandemic and retains the status of the worlds most advanced economy for many years. Its GDP makes up about a quarter of the global one!
Doing business is easy. The USA remains on the Top 10 list of countries according to the Ease of Doing Business ranking and Global Competitiveness Index and shows no signs of deterioration.
Highly-qualified staff. Many of the worlds best universities are located in the USA, and a lot of young talents graduate every year and start looking for a job. You will have no problems hiring employees with the required qualifications.
Entrepreneurial spirit. If you need business inspiration, you will find it here as the USA is rightfully considered the nation of entrepreneurs. 7 out of 10 top investors in the world started their business here, and you can follow suit.
Good support for small businesses. Business survival even in critical situations is seen as a priority here. If we take the recent example of the pandemic when the majority of small businesses were hit by recession, we will see that the government authorities provided counseling, grants, benefits, and resources (like tax holidays) to help entrepreneurs stay afloat.
Affordable taxes. The tax system is quite intricate and differs from state to state, and this is the reason to seek a consultants advice to choose the most suitable option. The average federal tax rate is 19.8%, which is lower than in most countries.

Buying a Company vs Starting from Scratch

Buying a ready-made business is a really good idea, especially if you opt for low-tax states like Wyoming. This may not be the best choice if you have a business idea you are passionate about – but in other cases, you will have a lot of advantages:

You will obtain your first profit much more quickly
The suppliers are usually available, so you will not have to build relations with them
Hiring staff may be challenging, but if you buy a company, the required employees are already available
All the equipment you may need to run a business is there to use
You will not need to open a corporate account as there is a functioning one
There is an appropriate customer base you can simply use without investing too much in advertising
Buying a business in a low-tax territory will give you the right to investor benefits

Look at these considerations attentively to see whether they are convincing enough for you to seriously consider buying an American business.

How Will a Foreigner Manage Business?

There are two options here, and each comes with its pros and cons:

You may decide to control your business online. It will require you to hire on-site executives to do all the work that cannot be done remotely.
You can be personally present in the USA to actively participate in every aspect of business management. This is more challenging as you will need to get a visa: the fact that you possess a business in the United States does not automatically make you eligible for a work permit. You will need to take care of a business owners visa, which is a complicated procedure.

Contact our specialists to discuss both opportunities with them if you struggle with the choice and need more details to make an informed decision or click on the above link to read detailed information on each type of visa you may obtain as a business owner.

Permits and Licenses: What a Foreigner Should Know

Can you buy any business in the USA? Not exactly: some business fields are restricted to foreigners, and some others will require obtaining special permits or licenses. Lets have a look at the areas that are limited for non-resident owners:

Banking activities
Broadcasting (radio and TV)
Aviation industry
Transportation by sea
Fishing industry
Insurance activities
Defense industry
Mineral resources
Gas and electricity supply
Using farmland

As for licenses and permits, it is better to talk about them when we discuss a particular business in a certain territory as the documents required may differ from state to state.

Letter of Intent

Business purchase begins with a thorough check and negotiations with the potential seller. If everything goes well at this stage, you will receive a Letter of Intent from the current owner with information about the price you agreed on, the assets owned by the company, and the existing liabilities (if any).

Following that, you may request some additional documents from the seller, such as a list of inventory, intellectual property possessed by the company, or copies of lease agreements.

Conclusion

Buying a business in the USA requires certain steps to make and involves studying a huge number of nuances if you venture on your own. However, we strongly recommend using the support of our experts who will guide you seamlessly and help you overcome any obstacles you may encounter on your way. America is a country for the strong and persistent, so join in!