How to Start a Startup in the USA: our advice

 The US market has always been a favorite of companies around the world. Thanks to the simplicity and low cost required to Start Your Business Setup in USA from India, as well as the numerous tax breaks, more and more Indian companies and startups decide to make this investment.

To open a company in the United States of America, however, you must be prepared from every point of view.

Which type of company to open, which country is best suited to your business, how to open a bank account, how to interface with local investors, how to offer the product to people with a mentality completely different from the Indian one, how taxes work, and much other.

The amount of information you need to get hold of before opening a company or branch in the USA shouldn't scare you. Fortunately there are also consultants and Indian companies specializing in India-USA import-export that can give a big hand to established companies and startups, from the beginning to the end of the process of setting up on the American market.

For our part, with the contribution of a company specialized in helping Indian companies and startups to do business in the USA, the Export America Group,  we will try to give some important information on these aspects, to give a first smattering to the entrepreneur Indian who wants to start doing business in the United States by opening a company or starting a startup.

Open a company in the USA

Here are the main factors to evaluate before starting a startup and opening a company in the USA:

1.       Choice of corporate form;

2.       Company incorporation status;

3.       Open a bank account in the USA;

4.       How to interface with American investors;

Choice of the corporate form in the USA

The United States allows you to open companies with different corporate forms. Each of these has specific characteristics that can adapt or not to the type of business you want to do.

Among the main corporate forms we find:

1.       Corporation (Inc or Corp), comparable to our SPAs

2.       LLC (Limited Liability Company

3.       Limited Partnership is a company made up of at least two people

4.       Sole Proprietorship, a company that belongs to a single owner

Usually, startups and companies tend to choose one of the top two American corporate forms. But while the former is more suitable for large companies listed on the stock exchange or that plan to do so in the short term, the latter is preferable for small companies and startups for a variety of reasons. One of these is the benefit for members of not having to respond with their private capital in case things went wrong.

 

Corporation type companies

The oldest corporate form ever existed in the United States. The opening procedures are very simple. Basically the registration of the company (better to say the incorporation) is done by submitting to the local authorities an "article of organization". Its capital is represented by shares.

LLC type companies

It is a company form of more recent origins and designed to encourage the influx of foreign investors into the US market. So the conditions are very advantageous. The type of taxation is defined as "pass-through-out", meaning that they are not subject to double taxation of profits and, at the same time, shareholders have limited liability. Private capital is protected and only the capital physically invested in society is at risk.

Another advantage is that the foreign entrepreneur who opens this type of company is not obliged to take up residence in the USA.

In which country to open a new company

It must be said that in the US, an LLC must pay a small tax to open the company to the state in which the seat is elected. If the same company also does business in other states, it must be registered in each of them.

The cost of opening a company in the US is about $ 100 on average and you can get it open in 24, maximum 48 hours.

The choice of the state of incorporation, regardless of fiscal convenience, should also be assessed on the basis of costs and type of business. For many types of business, it would be counterproductive to open a company in New York if you want to do business in California for example.

That said, there are US states where opening a company is cheaper, both for tax reasons and for the protection they offer companies in many ways. Let's take a couple of examples.

Delaware

One of the best states to open in America is Delaware, especially for large corporations. Delaware offers modern and efficient tax flexibility, such as to encourage entrepreneurship in all its aspects. To this must be added the tendency to simplify and streamline the entire business process. Lastly, the state of Delaware protects the privacy of the company, its members and its directors.

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North Carolina

North Carolina is also an excellent state for establishing a new company. He was elected as the second best American state to do business. The income tax of companies residing in this state is among the lowest in the world and the lowest in the entire USA: just 3%.

North Carolina's native and foreign attitude towards entrepreneurship is extremely friendly and encouraging. Finally, the low cost of living makes it ideal for startups.

Open a bank account in the USA

Opening a company in the United States therefore leads to the need to open a bank account in a local institution. This, in addition to serving to be able to physically open the new company, is indispensable for obtaining financing for companies.

 

The corporate bank account should be separate from the personal bank account (mandatory for corporations). In addition, the account opening is necessary, because through the traceability of the movement of money, it can be shown that the company or the startup is a real business. In fact, if after a certain period of time the company does not produce significant profits, the business is demoted to the rank of "hobby" and loses the opportunity to take advantage of various loans and concessions. Well ... if you open a company in the USA, the Americans themselves want it to be productive and profitable.

How to interface with American entrepreneurs

If you want to open a company in the United States, you have to consider dealing with American investors who are eager to do business. On the contrary… proposing these people to do business with you must be one of the objectives to be set.

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It must be known, however, that the American has a different philosophy from ours and it is necessary to approach it correctly in order to avoid losing the deal. Here are some tips.

Never propose to an American investor something that will be done in the future (we will do ....). We need to offer them what is ready to make money. If the investor is interested, he wants to start immediately. Otherwise it will liquidate you with a "come back when it's ready".

How to Start a Business in the USA?

 Living the American dream is a temptation for many entrepreneurs who want to start a business in the USA. If the administrative procedure is much simpler in the USA compared to France, the fact remains that there is a certain posture to adopt and mistakes to avoid making this challenge a success. It will often be essential to hire the services of professionals such as business lawyers , chartered accountants or business brokers to successfully set up and be able to quickly devote yourself to your business.

Think carefully about your implementation strategy.

To start a business in the USA from India , you have to know how to start from the beginning, that is to say first a good business plan including a good market study in order to properly develop the strategy that you intend to adopt to enter the targeted market. Several implementation strategies are possible: get started without actually creating a company but just by publishing a website in English , use the services of an on-site representative capable of building relationships with your customers and suppliers on site and thus the economy of a territorial establishment or quite simply to create your company on the American soil.

The choice of visa

Choosing a visa to settle in the USA can often be an obstacle course. The procedures are quite complex . The choice of visa should depend on your professional situation, your motivation and your investment possibilities. For an entrepreneur, American legislation provides for several types of visa: there is the E-1 visa (“Trade Exchanges” visa, the E-2 visa (“Investor” visa) or even the L-1 visa (“Transfer” visa).  For entrepreneurs, it is often the E-2 visa that is recommended, for this type of visa, a minimum investment of $ 100,000 is required.

Opt for quality support.

It is suicidal to embark on this adventure alone. To start your business in the USA, you will need several skills. In particular those of a lawyer upstream during the procedures for obtaining the visa and downstream during the administrative procedures once you are on the spot. You will also need the help of chartered accountants and business brokers to enable you to successfully complete your project.

Starting your business in the United States: our advice

Getting started in setting up or taking over a business is not easy in your country of origin, but what about in the United States?

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You have filled up with energy and you feel ready to face new adventures. You have found a great idea, you think it will work and you want to start your own business. To help you in your project, you will find a lot of advice based on the experiences of Indian people who tried their luck in the United States.

You can offer good service or a great product to sell. However, before you start to set up your business, it is prudent to study your potential market and also to plan the means of making known that you have this superb product or this service which your future customers will not be able to do without. And who will these future customers be? How to contact them?

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Remember, America is not waiting for you and your products. You will have to convince them that you are essential. You may already have all this information and are looking to better understand how to create your company, according to which legal forms, which formalities and many other questions…

 

For more detailed information, we invite you to consult the Corpseed

Waste management from electrical and electronic equipment

 

WEEE is the waste of electrical and electronic equipment, i.e. all waste deriving from devices which depend on electric currents or electromagnetic fields for their operation.

WEEE is classified into two broad categories, according to their origin:

Domestic WEEE: they are those coming from households and WEEE of commercial origin , industrial, institutional of another type, similar in nature and quantity to those originating from households.

 Professional WEEE: they are the WEEE different from those coming from the households

The WEEE family contains all the waste deriving from small and large household appliances, computers, electrical and electronic devices, cell phones, fluorescent lamps, etc., once they have reached the end of their life cycle E-waste recycling.

The WEEE are divided according to the Legislative 10 categories:

1.       Large appliances

2.       Small appliances

3.       IT and telecommunication equipment

4.       Consumer equipment and photovoltaic panels

5.       Lighting equipment

6.       Electrical and electronic tools (except large fixed industrial tools)

7.       Toys and equipment for leisure and sport

8.       Medical devices (except for all implanted and infected products

9.       Monitoring and control tools

10.   Vending machines

The regulation identifies 5 groups of WEEE based on the technologies necessary for their correct treatment:

R1 - Large cold white - large appliances for refrigeration: refrigerators, freezers, air conditioners 

R2 - Large non-cold white - large appliances such as washing machines, dishwashers.

R3 - TV cathode ray tube monitor

R4 - Consumer electronics, telecommunications, information technology, small appliances, power tools, toys, lighting equipment, medical devices.

R5 - Discharge light sources: fluorescent lamps and compact light sources.

Each type of WEEE is recycled and disposed of according to a specific procedure.

WEEE represents at the same time a source of pollution and a resource of useful and recoverable materials for subsequent uses.

In fact, different categories of WEEE contain materials that are highly harmful to the environment and human health and for this reason they must be managed following precise rules and in highly specialized plants.

 

From WEEE it is possible to recover various types of plastics, ferrous and non-ferrous metals (aluminum, copper, etc.), precious metals, glass, electronic parts which, properly treated, can give life to other objects and therefore fall within the economic cycle.

In the past, the economic aspect prevailed over the environmental one and often the recovery and disposal cycle was carried out without the most basic safety measures.

The producers of electrical or electronic equipment are therefore now obliged to join one of the existing collective systems, which are entrusted with the task of recovering all the WEEE collected from the municipal ecological stands and from the distribution.

WEEE regulations

The purposes of the Legislative Decree are manifold:

1.       Prevent the production of waste electrical and electronic equipment.

2.       Reduce the volume of waste to be disposed of, promoting recycling and reuse.

3.       Ensure that E-waste management is done in an environmentally sound way and raise awareness among those involved.

4.       Encourage the development of equipment that facilitates the disposal and recovery of WEEE through the reduction of the use of dangerous substances.

With reference to this latter obligation, the legislator has expressly established that manufacturers organize and manage the disposal operations of their own end-of-life equipment waste. The financing of these operations takes place through the application of an eco-contribution to the sale price. The amount of this eco-contribution is defined in relation to the cost of the collection, recycling and disposal operations.

Local authorities and in particular the Municipalities have precise WEEE skills. By achieving a high level of suitable separate collection to achieve the objectives indicated subject the collected WEEE to adequate treatment, the following measures and actions must be activated:

a) Municipalities must ensure the functionality and adequacy, due to the density of the population, of the separate collection systems of WEEE coming from households and accessibility to the related collection centers, in order to allow the final owners, distributors, installers and managers of WEEE technical assistance centers to freely deliver WEEE produced in their territory or held at grouping places organized by distributors in their territory. The transfer of waste produced in other Municipalities is allowed only upon signing of a special agreement with the Municipality of destination. This agreement is mandatory for Municipalities that have not set up a collection center suitable for receiving WEEE.

The separate collection must primarily concern the equipment for the exchange of temperature containing substances that deplete the ozone layer and fluorinated greenhouse gases, fluorescent lamps containing mercury, photovoltaic panels and small equipment.

Priority criteria in the management of WEEE

The management of the WEEE must privilege the reuse and preparation operations for the reuse of the WEEE, their components, subsets and consumables in implementation of the principles of precaution and prevention, and in order to allow an efficient use of resources.

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Preparation for reuse and reuse

The dedicated section contains all the information to obtain authorization for the construction and management of a preparation center for re-use, more simply defined as "Repair and re-use center", which has the function of transforming, through appropriate operations, the WEEE in functional equipment suitable for performing the same function as the original equipment.

PHASES of correct recycling of WEEE

There are four stages to carry out for the correct recycling of WEEE : separate collection, safety, treatment and recovery.

Separate collection

The correct recycling process begins in the phase of separate collection of technological waste by the end user (consumer, company or organization).

Citizens can give their WEEE free of charge using the services made available by the Municipalities or environmental service companies (Collection centers, mobile stations, home collection) or give the WEEE free of charge to the store, taking advantage of the 1 vs. 0 service for small EEE (max side 25 cm long), or when purchasing an equivalent product (1 on 1).

Domestic WEEE collected at the municipal collection centers where other types of waste from separate collection (paper and cardboard, plastic, glass, etc.) are also collected, are transported to special plants for subsequent treatment.

As for Professional WEEE, these are collected directly from companies, institutions and institutions to be transported to the plants too.

Safety

WEEE can contain dangerous substances (e.g. ozone depleting substances in refrigerators), for this reason special transports and legally required infrastructures are required, capable of handling, receiving and storing WEEE in an optimal way , avoiding damage to the equipment and the dispersion of dangerous substances. Before the actual treatment, WEEE are subjected to the separation phase, with the aim of removing dangerous components and materials (such as capacitors containing PCBs, ozone-depleting gases, components containing mercury, batteries) and to facilitate the recycling of materials.

Treatment and Recovery

The treatment activities for the recycling, recovery and enhancement of materials are carried out thanks to real "production lines" which instead of assembling or transforming raw materials and components into finished products follow the reverse process: from the product to the end life raw materials are obtained again. These can then be reused in new production cycles.