Why 2024 is the Best Time to Set Up a US Entity
It’s 2024, eCommerce is part of our lives, whether to sell on Amazon or do a Shopify Dropshipping, third-party sellers are only increasing year by year.
At some point we all are facing and hearing about many who is taking advantage and being part, however to some it’s not simply the easiest just to register with their banking and be part.
Today I’ll be going through the ultimate solution of starting a US Entity, what to expect, and how pretty much everything works.
Why 2024 is the Best Time to Set Up a US Entity
If you're a non-American, who’s having hard time to be part of the global and the US marketplace, looking to expand your business and establish a presence in the United States, 2024 could be the best year to do it. The US is a hub of innovation, a global leader in several sectors, and has a growing business environment that makes it an attractive destination for entrepreneurs and investors worldwide. Here are some reasons why 2024 could be the perfect time to set up a US entity.
Before all that let me introduce myself and clarify that: My name is Ugur, I am not a tax expert, a notarized representative in any state, I was fortunate enough to have a start-up that helps non-US residents to start and run their companies in the right way, over the last 6 years I worked with thousands of entrepreneurs from 70+ countries, I believe I’m the one who has the highest experience and expertise when it comes to running a business in the US as a non-American.
Access to Capital and the USD
The US has the largest economy in the world and a highly developed financial system, making it an ideal location for businesses seeking access to capital especially if you’re looking to raise capital through venture capital or private equity, the US provides plenty of opportunities to do so.
Not only for high scale VC backed businesses but also people who just have their eCommerce hustles, freelancing, digital services and all other types of SMB’s US entity is the ultimate solution especially for the one’s who were born on the unlucky side of the map just like i did in 1997, unfortunately it may be a challenge to be part of selling platforms such as Amazon,Ebay or payment providers PayPal and Stripe.
Your home countries banking or a business may not be accepted by the companies above, well, you’re not the only one, tens of thousands people like you do start their US entity every year just like you do, to be part of the US start-up ecosystem and marketplace, actually not only that overall the world thanks to a US entity.
Favorable Business Climate
Many think that, the entry level is very hard, you need many licenses, paperwork, complicated structures and so on.
Today unless you’re in some niche business such as dealing with gambling, or cannabis business etc. you having your LLC will allow you to do most of the business, even multiple niches under one umbrella. You being part of the payment providers and the selling platforms is simpler than you might think, as long as you’ve good looking website and full paperwork of company documents and tax ID numbers EIN and ITIN, you most likely are welcomed to start accepting payments, and the only thing you’d need when starting is only your proper passport scan, and a good company name, after that all are done by only getting your signatures!
Tax Benefits
The US has one of the most favorable tax regimes in the world, making it an attractive destination for businesses looking to minimize their tax liabilities. In 2024, the federal corporate tax rate is expected to decrease from 21% to 20%. Although this may seem like a small reduction, it can add up to significant savings for businesses with high taxable income. Additionally, when you’re a non resident, if you’ve your company based in tax free states, when you don’t live and reside in that state you completely avoid paying the state taxes.
When it comes to the federal income taxes which is owed to federal government aka the IRS, if you’ve a single member LLC, you’ve great option of filing 5472+1120 proforma, which basically is telling to the IRS that you do not have any physical presence in the US(called nexus status) you’re a taxpayer in your home country and you only inform how much you took and how much you put to the your business from your pocket during that calendar year.
Growing Demand for Products and Services
The US is one of the world's largest consumer markets, with a population of over 330 million people. In recent years, the country has experienced significant growth in several sectors, including e-commerce, fintech, and the sharing economy. This growth is expected to continue in 2024 and beyond, providing ample opportunities for businesses to tap into new markets and expand their operations.
For example, the e-commerce sector in the US is projected to reach $1 trillion in sales by 2024, driven by factors such as increasing internet penetration, growing consumer preference for online shopping, and the rise of mobile commerce. Similarly, the fintech sector is expected to continue to grow, driven by the increasing adoption of digital payments, blockchain technology, and artificial intelligence.
Streamlined Business Formation Processes
The US has made significant progress in streamlining its business formation processes in recent years, making it easier and more efficient for entrepreneurs and investors to establish a business entity. Many states offer online registration processes, simplified tax reporting requirements, and other tools that help
Credibility
Setting up a US entity also provides opportunities to network and collaborate with other businesses, entrepreneurs, and investors. The US is home to some of the world's largest and most innovative companies, as well as numerous startup incubators, accelerators, and networking events.
In 2024, the US is expected to continue to foster a strong culture of collaboration and innovation, making it an ideal location for businesses looking to expand their networks and learn from other industry leaders. Additionally, setting up a US entity can provide access to a diverse talent pool, allowing businesses to tap into a wide range of skills and expertise.
In conclusion, 2024 could be the perfect time to set up a US entity. With a favorable tax regime, a highly favorable business climate, access to capital, growing demand for products and services, streamlined business formation processes, and opportunities to network and collaborate, the US provides a stable and conducive environment for businesses to thrive and grow. If you're looking to expand your business and establish a presence in the US, 2024 could be the year to do it.
How to launch your dream US company?
When it comes to forming a US entity all the existing big incorporators such as LegalZoom, Rocket Lawyer, Northwest Registered agent, they’re mostly focused for the US citizens aka the SSN owners, if you’re a non-resident since I’m the one who understand you the most, who’s been in your path years ago we have the ultimate US formation package on TheItin.
Without BS simply TheItin is:
- By far the most affordable option. (Save over $300 when it’s compared with other cheapest option)
- By far the most comprehensive option with everything needed (You’re covered, the most important tax ID substitute of SSN aka ITIN number is included in the pricing)
- By far the simplest and the smoothest process. (Don’t deal or be confused with legal steps, everything is as easy as ordering food online.)
- 100% focused on the non-US, helping from scratch until you actually get paid and operational. (After the formation, your US banking, setting payment providers PayPal and Stripe, or selling platform Amazon you get a free guidance and help)
- 100% remote process with only simple requirement of proper passport scan. (Unlike any others don’t ship any single document to anywhere.)
TheITIN has helped many Markavo® users - it’s recognized and recommended!
If you have made it this far, take $50 off your TheITIN order by using coupon code MARKAVO50.
Best of luck on everyone’s entrepreneurial journey!
Owner of the TheITIN
Mar. 19, 2024