12 Reasons Why Incorporate Your Startup in the US and How to Make It Happen Wherever You Are
Out of the top 10 companies in the world, 8 of them are from the US. California is the 9th biggest economy in the world. And of course, the US is where people dream big, very big. You can launch a startup and within two years, you can become a multi-billion dollar company with millions of customers around the world thanks mainly to the US culture and the digital economy. Let’s dive deeper into why the US is the best country to start a company. 1. The US has a thriving economy. The US economy is the largest in the world, with a gross domestic product (GDP) of over $19 trillion. And it’s not just big businesses that are doing well — small businesses make up 99.7% of all US firms and contribute to around 44% of the country’s GDP. 2. The US has a huge consumer market. Because of its large population, the US offers a vast consumer market for businesses to tap into. In fact, with around 327 million people, it’s the third largest consumer market in the world (after China and India). 3. The US is a world leader in innovation. The US is well-known for being at the forefront of technological innovation. It’s home to some of the world’s leading tech firms, such as Apple, Google, and Microsoft, and is responsible for around 30% of global research and development spending. 4.The US has the most advanced venture capital and investment environment. Venture capitalists (VCs) are key players in the US startup ecosystem. They provide the funding that many young businesses need to get off the ground and grow. In fact, US VCs invested a record $84 billion in startups in 2020. In 2021, US companies raised $329.9 billion in venture capital, which is nearly double the previous yearly high of $166.6 billion set in 2020.The number of VC transactions also rose significantly, to an estimated 17,054 in 2021, up from 12,173 in 2020. 5. The US has a strong legal system. The US has a well-developed legal system that offers strong protection for businesses and entrepreneurs. This includes laws to protect intellectual property, such as patents and trademarks. 6. The US has a highly educated workforce. Around 36% of Americans have a college degree, which is one of the highest rates in the world. This means that businesses in the US have access to a highly skilled and educated workforce. The United States has around 4,000 institutions of higher education and over eight hundred thousand foreign students go to schools there each year. There are community colleges and technical schools that are all focused on training students to enter the workforce at every level. You’ll find hundreds of skilled workers searching for work just waiting for the chance you can provide them when you begin employing staff for your new company, no matter what your business is. 7. The US is a melting pot of cultures. The US is a culturally diverse country, with people from all over the world coming to live and work here. This diversity can be a great asset for businesses, providing them with a range of different perspectives and skills. 8. The US has a favorable tax regime. The US tax system is generally favorable for businesses, with a number of tax breaks and incentives available. For example, the US has a lower corporate tax rate than many other countries, which can make it more profitable to do business here. 9. The US is a great place to live. Not only is the US a great place to do business, but it’s also an excellent place to live. The country offers a high standard of living, with good infrastructure and amenities, and plenty of opportunities for leisure and recreation. 10. The US is the country with the most access to global growth. Many cities encourage you to invest in their communities, and all 50 states want to improve the business climate. You may choose a location for your firm virtually anywhere in the world and select a geographical area and climate zone that is appealing to you. The United States has trade pacts with 20 nations that provide a marketing edge to U.S.-based manufacturing firms. This adds 425 million consumers to your market. You can see how large America’s market is when you combine the approximately 320 million Americans with this figure. 11. The US has an extremely stable political environment. The United States has a stable political environment, according to the well-known business Ernst and Young, which makes it the “most attractive market for venture capital and private equity investment.” The World Bank ranks the United States fifth for its overall “ease of doing business” in all countries involved in international trade. 12. The US is the country with the most advanced technologies Access to sophisticated technology, which the United States is famous for, boosts a company’s desire to conduct business in the United States. Many foreign investors are establishing corporations in the United States just for the purpose of gaining access to cutting-edge technology and international communications. Top 3 Platforms to Launch Your Startup in the US Firstbase Firstbase is an online platform that helps entrepreneurs start and grow their businesses in the US. It provides access to a range of resources, including startup funding, educational programs, and mentorship. Firstbase also connects entrepreneurs with investors and corporate partners. You can view the Firstbase Trustpilot reviews here. What do the Firstbase services include? Learn more and sign up here Additional free Firstbase services Expedited company formation All state filing fees Expedited Tax ID (EIN) setup Virtual office package with a US mailing address, phone number, and live receptionist Stock issuance All essential legal documents $150K in deals and rewards Obtaining a US business credit score Registered agent service in all 50 states Access to Firstbase online platform for managing your business Business license research and filing Trademark registration 24/7 global customer support Firstbase has no hidden fees. The Time Each Step Takes with Firstbase Incorporation: 3–7 business days (IMPORTANT NOTICE FOR DELAWARE: Due to high volume, it is currently taking Delaware’s Division of Corporations 7–10 business days to process filings. We are monitoring this situation very closely and will update you as soon as we have news on your application). Documentation Preparation: 2–7 business days EIN: 20–30 business days if you do not have SSN/ITIN (1–2 business days with SSN/ITIN) Bank Account: 1–5 business days AFTER the application has been submitted to the bank account partner. What Type of Company Can You Open with Firstbase? You can open a C-Corporation or an LLC using the Firstbase service. Can FirstBase Open a Bank Account? Firstbase works to ensure that all customers open a business bank account. Firstbase partners with digital banking partners and financial institutions to support founders and business owners from all over the world and make it easy for international founders to easily go through the application process without physically being present in the US. You can learn more about Firstbase and sign up here. Stripe Atlas Stripe Atlas is a service that helps entrepreneurs easily start and scale their businesses. It offers a suite of tools to help with everything from incorporating your business to processing payments and managing finances. You can view the Atlas Product Hunt Reviews here. Atlas doesn’t have Trustpilot reviews. What does the Stripe Atlas service include? The Stripe Atlas service includes a number of features to help entrepreneurs start and grow their businesses. These include: Formation assistance: help with incorporating your business in the US, setting up a US bank account, and getting a US tax ID Payment processing: access to Stripe’s payment processing platform so you can start accepting payments from customers Financial management: tools to help you manage your finances, including invoicing, bookkeeping, and tax filing Community support: access to a community of entrepreneurs and resources to help you grow your business Learn more and sign up here. The Time It Takes to Incorporate Your Startup with Stripe Atlas It takes 1–2 business days to incorporate a company by Stripe Atlas whether it is a C-Corporation or an LLC. What Type of Company Can You Open with Stripe Atlas? Atlas opens C-Corporation and LLC companies in Delaware. Can Stripe Atlas Help Open a Bank Account? Stripe Atlas founders can open a business bank account with one of their partners after forming a company. Atlas’ banking partners determine supportability and they may not be able to support all businesses. Atlas has partnerships with Mercury and Silicon Valley Bank. Clerky Clerky is an online legal platform that helps entrepreneurs get their businesses off the ground in the US. You can view the Clerky Trustpilot reviews here. To incorporate using Clerky, you’ll first need to create an account and provide some basic information about your business. Once you’ve done this, you’ll be able to select the state in which you want to incorporate. Clerky will then generate the necessary paperwork and file it with the state on your behalf. Clerky helps you generate legal documents by asking you a series of questions about your business. They then use your answers to generate custom documents that are tailored to your business. Clerky can generate a wide variety of legal documents, including incorporation documents, funding documents, employment agreements, and more. Learn more and sign up here. The Time It Takes to Incorporate Your Startup with Clerky The certificate of incorporation is filed by Clerky with the Delaware Secretary of State on an expedited basis, so that they typically return it within 2–3 business days. What Type of Company Can You Open with Clerky? Clerky is able to start Delaware C-Corporations. Can Clerky Help Open a Bank Account? Clerky’s software makes it easy to begin the process of opening a bank account for your startup, once you have completed the prerequisite legal paperwork. They currently partner with First Republic Bank, Mercury and Pacific Western Bank. Frequently Asked Questions What Would be the Cost to Start a Company Using a Law Firm Instead? The costs would be between $2500–5000. This entails a law firm performing all of the necessary actions to legally establish your company. To formalize your business, you must first establish a corporation in the state (usually Delaware) and file documents with it. What Type of Company to Start? LLC. An LLC is a business organization structure in the United States that allows company owners to separate their personal liabilities from the company’s responsibilities. C-Corporation. A corporation is an independent entity for tax purposes. Corporations generally pay corporate taxes on their own profits, and their shareholders pay personal income on the capital distributed to them. Which State to Start Your Company? Delaware. The gold standard for business seeking angel investment and venture capital financing. Delaware is the corporate home of more than half of the Fortune 500 companies. Wyoming. Wyoming is a great place to establish your own firm. It’s ideal for small, privately owned businesses. Extremely low cost, easy-to-manage, and adaptable as your company expands. Conclusion There are many reasons why you might want to start a company in the United States. The process of incorporating your business can be fairly simple and straightforward. Additionally, the United States offers a number of benefits and advantages for businesses. The United States is home to a large and thriving economy. This provides a great opportunity for businesses to get started and grow. Additionally, the US market is highly competitive, which can help spur innovation and creativity. The government in the United States also offers a number of programs and incentives to help businesses get started and grow. For example, the Small Business Administration provides loans and other assistance to small businesses. If you’re thinking about starting a company in the United States, there are a few things you should keep in mind. First, make sure you understand the process of incorporating your business. Second, research the benefits and advantages of doing business in the United States. And third, take advantage of government programs and incentives that can help your business succeed. Do you want to launch your thriving digital business? Awaynear uses the next generation methods to design and develop your digital business and become your partner in business development as well. See more.. Subscribe to Innovation Party Weekly Disruptive innovation in your mailbox once a week. Get ahead of the curve. Subscribe here. Are You a Medium Member? Read about all your interests written by independent writers around the world. Your membership fee directly supports writers you read. You’ll also get full access to every story on Medium. $5/month only. Become a Member Here. 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