White Papers: Doing Business in the U.S.
Many successful business owners outside the United States view the U.S. as a fertile market that offers the best buying population available to help grow their business on an international level. Yet it is often these same business owners that are negatively surprised at the cost and complications of doing business in the United States.
While it is true that the United States is the best buying population in the world, it is also a very large audience. So large, in fact, that many resident businesses find their markets elusive. Marketing and advertising tend to be a more expensive proposition in the United States than in other countries, and business owners outside the U.S. who are trying to reach a larger audience typically do not designate enough capital to get their U.S. operation up and running.
What many business owners are beginning to realize is that they can avoid some of the pitfalls commonly encountered when starting operations in the United States, by adhering to a basic checklist of procedures. Companies that take time to review the following New Business Checklist and apply it to their own operation, will have a better understanding of what to expect in the U.S. market and how to proceed in growing their business.
| New Company Set Up | YES | NO | N/A | Person Responsible |
|---|---|---|---|---|
| Determination of the most advantageous form of entity: sole proprietorship, partnership, corporation (c or s), LLC | ||||
| Preparation of the legal documents that are required based on the decision above (at minimum a federal identification number), including selection of a board of directors and officers, and minutes of an initial meeting of the board. | ||||
| Preparation of the application to be an s corporation (form 2553) | ||||
| Preparation of the applications for state payroll tax accounts | ||||
| Preparation of the paperwork necessary to open a new bank account with/without wire transfer capability | ||||
| Preparation of applications for corporate credit card | ||||
| Preparation of loan packages and the subsequent negotiations with lenders | ||||
| For office space, the determination of location selection and type of facility | ||||
| Contract negotiations for office lease | ||||
| Consultation regarding the purchase of computer systems and other office equipment | ||||
| Arrangement for telephone and other necessary services for the new office | ||||
| Purchase of office supplies and new stationery | ||||
| Acquisition of insurance — general liability, workman’s compensation, auto, etc. | ||||
| Accounting | YES | NO | N/A | Person Responsible |
| Monthly write-up work, e.g. entering cash receipts and disbursements on the computer and maintaining the general ledger | ||||
| Writing company checks for accounts payable | ||||
| Preparation of an electronic spreadsheet for expense reports | ||||
| Preparation of interim compiled financial statements (monthly, quarterly, semi-annual) | ||||
| Preparation of annual financial statements (compiled, reviewed, audited) | ||||
| Tax | YES | NO | N/A | Person Responsible |
| Preparation of corporate income tax returns | ||||
| Preparation of quarterly payroll tax returns including annual W-2s and 1099s | ||||
| Preparation of monthly sales tax returns | ||||
| Preparation of personal income tax returns for management; if yes, how many? List names | ||||
| Human Resources | YES | NO | N/A | Person Responsible |
| Contract negotiations for employment agreements | ||||
| Determination of employee benefit packages, e.g., health insurance, disability insurance, benefit plans, cafeteria plans, etc. | ||||
| Payroll processing, including calculation and preparation of payroll checks, deposit of payroll taxes, maintenance of payroll records for the quarterly reports | ||||
| Applications for direct deposit of payroll checks | ||||
| Preparation of a plan document for a new employee benefit plan | ||||
| Annual accounting for the employee benefit plan, including any applicable discrimination testing | ||||
| Preparation of the annual information return for the employee benefit plan (form 550 series) |