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4 basic steps to start your own business in the US

Doing business in the United States, in a country where the form of private enterprise has been erected in an absolute, is a rather simple task. But strict and orderly. With its pluses and minuses. Let us examine all the vicissitudes of the organization of business in the United States, and at the same time learn how to open your own business in America.

In general, small businesses or small businesses are forms of commercial activity that regularly receive income that are not formally part of associations. The main criteria for determining such a business are the number of employees and the volume of annual revenue. These defining criteria, in fact, apply in any developed country in the world. For example, let’s compare similar forms of business in Russia and the United States of America.

According to the federal law of the Russian Federation 209-ФЗ “On the development of small and medium-sized businesses in the Russian Federation”, such enterprises include all forms of commercial activity, where the number of employees does not exceed 100 people, and the limiting values ​​of annual income received from carrying out activities do not exceed 800 million rubles. According to NAFI statistics dated February 27, 2018, in 2015-2016 the number of enterprises belonging to small and medium-sized businesses in Russia reached values ​​of 2.784 million legal entities and 2.524 million individual entrepreneurs.

In the US, small businesses, according to local laws, are companies that employ no more than 500 people, an annual turnover of less than $ 2 million, and total assets do not exceed $ 5 million. The volume of small and medium-sized businesses in America is comparable to Russia and is about 6.2 million companies.

As can be seen from the comparison, the criteria for determining small business in two bipolar countries are practically the same. And this is despite the many political differences and controversial issues that exist. Politics is politics, and business everywhere has clear forms and general laws of development. This means that the options for organizing small businesses in the US should be known, if only for general development. Although no one bothers the non-resident to register his business in the USA, as they say, without leaving home.

What is a small business in the US
In addition to the above numerical criteria, there are features that are taken into account when opening any small business in the United States. Local and federal government agencies of the States provide full support to people who plan to start their own business in small and medium form. Providing them with friendly conditions for conducting business. This is not about tax concessions and financial support for every private entrepreneur in America, especially in reality there are no such preferences. In the US, the same tax conditions for both new and existing business. As well as credit forms of support. The point is that both citizens of America and non-residents of the country can do business in the United States (subject to the conditions) on the same conditions. These conditions for running your own business are transparent. Business does not strain checks and additional requisitions. As, however, and in Russia.

The first step to the cherished dream – opening a business in America – should be considered the choice of the legal form of entrepreneurship. Each has advantages and limitations compared to each other. Therefore, it is necessary to carefully weigh everything before registering.

The main legal forms of doing business in the United States
The simplest and most accessible form of business in the United States of America is individual entrepreneurship.

Individual entrepreneurship or sole proprietorship of businesses in the United States is referred to as the “sole proprietorship”. There are no strict formalities or state registration to engage in such a form of business in the United States; an individual social security number is sufficient. In some cases, you must obtain local permits and mandatory licenses. But, in general, any resident of the United States can start their own business in this form. In fact, it is an analogue of Russian self-employment.

The main disadvantage of this form of business is the individual entrepreneur himself. That is, such a business has strictly one owner. If there is a business partner, then the “sole proprietorship” form cannot be taken. However, the spouse or spouse is an exception and is not legally considered a partner. Spouses may work as a “sole proprietorship”, while one spouse may not file a declaration in the form of a private business.

Assistance in starting and running your own business can be obtained from the SBDC (Small Business Development Center) – Small Business Development Center. This is a state program aimed at stimulating, helping and developing small business forms. SBDC centers collaborate with leading universities.

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