Insights
General advantages of owning a company in the U.S.A.
Establishing and owning a company in the U.S.A. brings numerous benefits. Here are the most significant advantages of owning a company in the United States:
- Operating in a country where about 60% of all global corporate capital (so-called “equity”) is located.
- Access to American investors, banks, and capital markets to finance ongoing operations and further development. Many American banks, private equity firms, hedge funds, pension and trust funds, etc., have statutes stating that they do not invest in foreign companies or grant loans to such companies. This is because investing by American banks and financial companies outside the U.S.A. is much riskier and costlier than investing in companies registered in the U.S.A. For American investors and banks, investing abroad requires knowledge of accounting standards, tax laws, and business laws of that country. It also requires the ability to assess the risk of investment or loans for a company in that country, knowledge of the local language, ability to enforce their rights in local courts, among many other factors, which result in most American investors deciding not to risk their capital in a company located outside the U.S.A. Thus, to have the possibility of obtaining loans or capital from American financial institutions or individual investors, one must have a company located in the U.S.A. The capital markets in the United States are the largest in the world and are also the most transparent. Therefore, there are many opportunities for financing the ongoing operations and development of companies registered in the U.S.A. This could be financing through loans, external equity, joint ventures, IPOs, or by finding a strategic partner. Unfortunately, without registering a company in the U.S.A., access to company financing by financial institutions in the United States is practically impossible (especially for small and medium-sized companies from outside the U.S.A.). Therefore, registering a company in the U.S.A. is the first step to applying for financing and company development through American banks, investment funds, pension funds, government grants and contracts, and American investors (whether by direct investment in the company or investing in the company’s stock on the stock exchange).
- The possibility of entering the American stock exchange.
- Keeping accounting and preparing financial statements of the company according to American accounting standards, known as US GAAP (US Generally Accepted Accounting Principles), which is required by most financial institutions in the U.S.A. when applying for loans at banks or trying to obtain equity input to the company from investors.
- Earning in American dollars and having an account in an American bank insured by FDIC (Federal Deposit Insurance Corporation) up to $250,000 per account.
- Building credit history in the U.S.A. necessary for obtaining bank loans, credit cards, and capital from investors.
- Having financial resources in a country that is an economic, military, and financial superpower with a stable legal system, not subject to the jurisdiction of the European Union.
- Freeing oneself from the restrictive regulations of the European Union regarding business operations.
- Having financial resources in an American bank in case of various potential crises in the country of residence and the region (such as the European Union for Poles), as well as in case of needs related to paying for their children’s studies in the U.S.A., buying cars, medical treatments, and other payments.
- The possibility of purchasing various types of insurances from American insurance companies.
- Potential tax savings for companies and their owners who do not conduct business in the U.S.A. and are not tax residents of the United States.
- Potential tax savings for companies and their owners who conduct business in the U.S.A. and are tax residents of the United States (if taxes in the country of origin are higher than taxes in the U.S.A.).