Doing Business in the United States
The United States offers one of the world's largest and most dynamic business environments. This guide covers the key considerations for establishing and operating a business in the US, including entity types, taxation, employment regulations, and compliance requirements.
Business Environment
The US ranks highly for ease of doing business, with a transparent legal system, sophisticated financial markets, and a large consumer base. Key advantages include:
- World's largest economy (GDP ~$27 trillion)
- Stable legal and regulatory framework
- Access to capital markets
- Highly skilled workforce
- Strong intellectual property protection
Market Entry Options
Establishing a US Presence
- Greenfield Investment: Setting up a new subsidiary
- Mergers and Acquisitions: Buying an existing US business
- Joint Ventures: Partnering with a US company
- Franchising: Operating under an established brand
- Branch Office: Extension of foreign parent company
Key Regulations
- Federal Level: SEC, EPA, OSHA, FDA, FTC (varies by industry)
- State Level: Business licenses, professional licensing, environmental regulations
- Local Level: Zoning, building permits, health department permits
- Industry-Specific: Banking, insurance, healthcare, energy, telecommunications
Employment Law
- At-Will Employment: Default rule (both parties can terminate without cause, except Montana)
- Minimum Wage: Federal $7.25/hour (many states have higher minimums)
- Overtime: 1.5x regular rate for hours over 40/week (FLSA)
- Anti-Discrimination: Title VII, ADA, ADEA, state laws
- Workplace Safety: OSHA compliance required
Tax Obligations
- Federal Corporate Tax: 21% flat rate for C corporations
- State Taxes: Corporate income tax (0-11.5%), sales tax (0-10.25%), property tax
- Employment Taxes: FICA (Social Security + Medicare), FUTA (unemployment)
- Withholding: Federal and state income tax withholding from employee wages
- Sales Tax Collection: Required in states with economic nexus
Intellectual Property Protection
- Patents: 20-year protection (USPTO)
- Trademarks: Federal and state registration available
- Copyrights: Automatic upon creation, registration recommended
- Trade Secrets: Protected under state law and Defend Trade Secrets Act
Foreign Investment Considerations
- CFIUS Review: Committee on Foreign Investment review for transactions posing national security risks
- No General FDI Restrictions: Most sectors open to foreign investment
- Tax Treaties: Over 60 treaties reducing withholding taxes
- Visa Requirements: E-2 (treaty investor), L-1 (intracompany transfer), EB-5 (investor visa)