If you are a foreign investor and want to open a business in the US, we recommend perusing the following article in order to understand what to expect. In the following lines, we will detail what it demands to run a business in one of the American states, instead of the legal procedures of setting up a company in the USA (you can read this topic here), the pros and cons of developing your commercial activities, and many more. Before starting, we would like to add that our US company formation agents are at your disposal for any questions related to business and incorporation.
| Quick Facts | |
|---|---|
| Types of companies available in the USA |
– limited liability companies (LLCs), – partnerships, – sole proprietorships, – corporations, etc. |
|
Best US business destinations |
– Delaware, – Wyoming, – California, – New York, etc. |
|
Costs of a virtual office |
Start at around USD 50/month |
| Costs of accounting services | Start at around USD 300/month for basic bookkeeping |
| Office rental costs (approx.) |
From USD 50 – 200 per sq. ft. in prime locations/American states |
| Average salary in the US |
Around USD 62,000/year, but it varies from state to state |
| Common investment fields for foreigners |
– IT, – real estate, – commodities, – private equity, – utilities stock, etc. |
| USA economy in numbers |
Real GDP growth – around USD 29.18 trillion in 2024 |
| Tax benefits/deductions |
For: – research activities, – deduction for business interest expense, – equipment acquisition, etc. |
| Level of bureaucracy | Complex business licenses & interaction with authorities will take time. |
| Salary taxes |
Ranging from 10% to 37%, depending on the single filer, married filing joint return, head of household. Deductions also apply. |
| Pros of doing business in the USA |
– biggest market in the world, – favorable business climate, – numerous business opportunities, – access to capital markets, etc. |
| Cons of doing business in the USA |
– different complex laws, – highly competitive market, – bureaucracy, etc. |
| Time frame to start a business in the US |
A few weeks or months, depending on the type of business |
| Company formation in US can be done with our local agents (YES/NO) | YES |
Table of Contents
What are the pros and cons of the business climate in the US?
Let’s review some pros and cons of the business climate in the USA:
- The USA is the largest economy in the world, which makes the country very appealing from a business point of view.
- Being connected to large regional and international markets, business growth is possible in the USA and other important financial centers & hubs.
- More than 60% of the top investors in the USA generate money from the stock market, so it’s where you should incorporate if you plan to list your company.
- Just like in many international markets, business challenges are present. Investors might deal with bureaucracy or with different legal applications depending on the state/region. The differences in state legislations are a very important issue that you should consider.
- As it is known, the US market is very large and diverse, depending on the State/location, which is why setting up a business in the USA as a foreigner might seem a bit complex at the beginning. This is one of the reasons why, before the actual opening of your business, you should seek advice on where to incorporate; it could be a make-or-break decision.
Here is an infographic with details on how to do business as a foreigner in the US:
What are the costs of running a business in the USA?
Compared to other countries, opening a business in the USA might be expensive (and we are not talking about incorporation costs, which are very low compared to Europe, for example). However, the actual costs for running a business in the USA depend on factors like:
- selected location – In New York, renting an office starts at USD 50/sq.ft., while in Delaware around USD 365/month.
- type of business – Around USD 300 is the filing fee for the Certificate of Formation of an LLC in Texas, while around USD 70 for the same business structure in California.
- utility costs – In New York, for instance, entrepreneurs must pay the basic utility tax rate of around 2.35% of the gross operating income.
- business license fees – In Wyoming, the business license fee costs around USD 200, depending on the activities, while in Delaware around USD 75 paid annually.
- equipment & machinery,
- wages – in Delaware, for instance, the average working hour is around USD 32.37, while in New York it may start at USD 15,50/hour and rise depending on the location/city.
These are some of the estimated costs for setting up a business in the USA, with examples of states like New York, Delaware, and Wyoming, much preferred destinations for international entrepreneurs. You are invited to explore the following video presentation with details on this subject:
Future business forecast for the USA
According to the Bureau of Labor Statistics, the labor force continues to get stronger, and thousands of workers aged between 25 and 54 years will soon join the market, in addition to those already existing in this age category. On the other hand, an increase in terms of investments of only 1% in 2025 in the USA is expected, due to the current social and financial context involving tariffs and high interest rates. Even so, running a business in the USA remains a solid and smart option for foreign investors.
US investments in numbers
The current US president, Donald Trump, encourages foreign investments in the USA. As such, he recently announced a solid investment strategy comprising around USD 92 billion in pioneering AI and energy initiatives, highlighting that new technologies can lead to a manufacturing revitalization in the US. The following statistical data provides an overview of investments in the USA. This information can help you when you want to open a business in the USA as a foreigner:
- In 2024, the expenses made by foreign investors to incorporate or expand a business in the USA amounted to around USD 151 billion.
- In the same year, foreign entrepreneurs hired about 204,300 US workers.
- Most foreign investments in 2024, about USD 67.7 billion, were directed to the manufacturing sector in the USA.
If you are thinking of starting a business in the USA as a foreigner, we invite you to contact our team of specialists. We are at your disposal to tell you more and help you with the USA company formation, regardless of the selected state for business development.