Entrepreneurship in the United States is a dream for many who wish to have their own business and be paid in dollars.
Living in the United States and owning a business in an economically and socially stable location may be easier than you think.
According to data from the Global Entrepreneurship Monitor, in 2021, the United States had one of the highest entrepreneurship rates in the world among high-income countries.
The so-called American dream is desired by many, and you too can take advantage of the unlimited opportunities that the USA offers in various fields of business and knowledge.
How to open a business in the United States
In Brazil we have different types of companies and specific legal and tax regimes for each of them, and in the USA it would be no different.
Any person, regardless of nationality, can open a business in the U.S. as long as he or she complies with the rules set by the federal government and the Internal Revenue Service.
Types of Companies in the USA
The first step to entrepreneurship is to decide what kind of company you want to start.
According to the IRS, the most common types of companies in the USA are Sole Proprietorships, Partnerships, Corporations, S Corporations, and LLCs (Limited Liability Company).
Sole Proprietorship is the most simplified model of a company, when a business is owned and operated by only one person, who is responsible for all the company's obligations and debts.
Because it is a small individual company, it can be compared to the MEI regime that exists in Brazil.
In this structure, there is no legal separation between the owner and the company, and profits and losses are reported in the owner's personal income tax return.
Sole Proprietorship is the simplest and easiest way to start a business in the United States, but the personal assets and income statements of the business and the owner become confused, because this model lacks the legal and financial protection offered by other business structures, such as the LLC or Corporation.
A Partnership is a business structure in the United States in which two or more individuals join together to operate a business jointly.
Each participant in the partnership contributes money, property, labor, or skill, and shares, according to his or her percentage in the company, in the gains and losses of the business.
A Partnership must annually report its income, gains, losses, and deductions to the IRS, but this business model does not pay Income Tax, which is the equivalent of the U.S. federal income tax.
Instead, the partners need to pay taxes according to the profits and losses generated by the percentages they hold in Partnership in their personal persons.
In the United States there are two types of Corporation: the C-Corporation and the S-Corporation. These are the types of companies that can be publicly traded and have an unlimited number of shareholders.
The C-Corporation is the standard corporate structure for publicly and privately held companies with a shareholder and employee structure. It offers legal and tax protection for shareholders and can raise and expand its capital by selling and issuing shares.
A C-Corporation can have an unlimited number of shareholders and the shares can be publicly traded on stock exchanges.
However, the C-Corporation is subject to federal and state corporate taxes, and this can result in double taxation: on company profits and on dividends distributed to shareholders.
S Corporations (S-Corps)
On the other hand, the S-Corporation is a business structure that allows the company to have the legal and tax protection of a Corporation while having the tax benefit of a Partnership.
This means that the company is not subject to federal and state corporate taxes, and that profits and losses are reported in the personal income tax return of its shareholders.
This makes the S-Corporation a popular structure for small businesses, as it offers legal and tax protection and avoids double taxation.
Another difference is that the S-Corporation is limited to a maximum of 100 shareholders and only one class of shares, and the shareholders must be residents of the United States and U.S. citizens or permanent residents.
An LLC (Limited Liability Company) is a type of limited liability company, similar to what we call LTDA (Sociedade Empresarial Limitada) in Brazil.
As the name implies, the LLC is not a publicly traded company and has a limited number of partners. This structure allows the partners to protect their personal assets in the event of litigation or bankruptcy.
The LLC is a flexible structure that is relatively easy to establish and maintain, and is a popular choice for small businesses and entrepreneurs in the United States.
The EB-5 visa is the right one if you are Brazilian and want to invest in the United States to obtain a green card.
This visa is a type of immigrant visa for the United States that allows you to obtain a green card (permanent residence) by investing in a commercial project or company in the U.S. that creates jobs in the country.
The minimum investment required for an EB-5 visa is $900,000, and this investment must create at least 10 full-time jobs for US workers.
EB-5 visa applicants must demonstrate that this money invested was obtained legally and that the investment complies with US laws and regulations.
Investing and living in the USA: A green card is closer than you think
Did you know that investing in the United States and obtaining an EB-5 visa is one way to live permanently in the US, but not the only way?
Many professions are on the rise in the United States.
If you have a recognized degree, five years of work experience, or exceptional or extraordinary skills in your field, you may be eligible for a green card!
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