Embarking on the journey of establishing a presence in the United States involves critical decisions that impact the trajectory of your business. From selecting the right jurisdiction for incorporation to strategically choosing a business location, navigating through these choices requires meticulous planning.
In this article we explore these key considerations:
🇺🇸 US formation
📍 Delve into the nuances of site selection & key costs associated
🚀 Emphasize the importance of connecting with seasoned resources
#1 US Formation – Understanding Delaware’s Appeal
Business-Friendly Legal Environment:
Delaware offers a well-established and flexible legal framework for businesses. The General Corporation Law allows businesses to tailor governance structures to their specific needs, fostering a conducive environment for growth.
Delaware's Court of Chancery specializes in business matters, providing a swift and predictable legal process for dispute resolution. The state's rich corporate case law further ensures clarity, reducing uncertainties for businesses and investors.
Delaware's corporate income tax favors businesses, particularly those operating outside of Delaware. This translates to taxation only on income earned within the state, presenting a noteworthy advantage.
Privacy and Confidentiality:
Delaware champions corporate privacy by not mandating the disclosure of shareholders' names in public filings. This confidentiality feature appeals to business owners seeking a higher level of privacy.
While Delaware is a popular choice, aligning incorporation decisions with a company's unique needs is vital. Once your corporation is filed, there is a myriad of additional State & Federal filings that need to be completed in a timely manner and requirements often change annually. Establishing a Delaware Corporation FAQ.
#2 Unlocking the Power of Site Selection
Why Site Selection Matters:
Site selection is the cornerstone of US business establishment, determining critical aspects such as obtaining a valid US business address. The choice extends beyond logistical considerations, influencing cultural fit, talent access, tax rates, and operating costs. It is essential to have a US business address to even start the US entity formation process. Learn more using our Site Selection Tool here.
Diving into Costs and Logistics:
Taxes: In addition to US Federal tax, States impose corporate income taxes, varying significantly which is a factor to consider when choosing a location. A glimpse into major tech hubs reveals the diversity:
North Carolina: 2.5%
New York: 7.3%
New York: 7.25%
Operating costs: The US average varies across industries, company sizes, and regions. Local factors such as industry norms and regulations shape these costs.
Salaries: A snapshot of base salary ranges for Technical Sales positions in 2022:
Technical Sales Base Salary Range*:
Entry-Level: $50,000 - $80,000
Mid-Level: $80,000 - $120,000
Senior-Level: $120,000 - $200,000+
Average Base Salary: $70,000 - $100,000
*Salary information can change over time and it's advisable to consult recent industry data. These ranges do not include additional compensation components, such as commissions, bonuses, and profit-sharing.
Factors Influencing Salaries: Industry, geographic location, experience, education, and company size play pivotal roles. Learn more about Talent Readiness here.
Time Zones & Travel: While there are US tech hubs across the country, consideration of time zones, travel ease, and access to talent is paramount. East Coast locations are advantageous for collaboration with European teams, especially in hybrid or office-centric models.
Choosing a US location involves balancing various criteria to find the right fit for your company's culture and operational needs.
#3 Connecting with the right Resources
US expansion demands a holistic strategy, encompassing location, cost, cultural fit, and operational aspects. Success lies in connecting with experienced operators well-versed in the entire lifecycle of readiness, launch, and scale. Reaching out to seasoned professionals is not just a suggestion; it's a necessity. Our team is ready to guide you through every step of this transformative journey. Contact us to kickstart your success in the competitive and complex US market. We are always happy to answer your questions.