5 Reasons Why a Foreigner should Form a US Business



Creating a US company provides may benefits for the US entrepreneur. In this post I've mentioned the most important ones. But what if you are not a US citizen and live abroad, is there a reason why you should form your business in the US instead of in your homeland?

In this post I elaborate on 5 reasons why you should create your company in the US and not in your country of origin. These reasons are in addition to the ones that apply to US entrepreneurs.



Build Trust Online with US Consumers

Online spending by U.S. consumers is at $183.9 billion and growing! One of the best ways to get your share of this huge market is to have a US business. You may be surprised to learn how affordable and simple it can be to establish a US presence that gives your business trust and credibility. Often, US consumers will avoid the risk of dealing with customer service and liability issues in another country. It is very easy for them to just click on the next search result and get to your closest US competitor. As a result from this, you could be losing a significant percentage of your sales leads every year, simply because your website does not show a US adress.


Establish Credibility with US Business Partners

In addition to the benefits that having offices in the US provides to your brand, there are also many advantages to establishing an international presence in the US. Most US businesses prefer working with other US companies to minimize tax and legal complications. Having a US presence removes these barriers and can open up new profitable opportunities for joint ventures and strategic alliances. Potential partners are scanning your website right now to see if you have an office in the US. You could be losing revenue because of a perception issue that can be easily and inexpensively fixed.


Protect your Assents from Devastating Lawsuits

Lately there has been an increase in a number of lawsuits. One the best ways to minimize risk is to spread it among several business entities. Keeping parts of your business safe and secure in another jurisdiction can protect your assets from legal actions at home. A US corporation or LLC can be a convenient way to reduce risk of legal exposure by setting a protective firewall around your business and personal assets. It might in some cases help you reduce insurance costs or increase your eligibility for a business credit.


Reduce your Merchant Account Costs

Setting up a US business entity means that US customers' payments will be processed through a US merchant account. If you take into account the number of international transactions processed in a year, it can make a huge difference in your profit and loss results. It will enable to generate a lot savings for you will avoid the “international” credit card rates charged to process those same transactions in your home country.

Efficient US Bureaucracy

Setting up a company in some countries can take a long time and a lot of bureaucratic effort. Some US states are extremely efficient at this, most notably Delaware. Even if you are abroad you can setup a business in Delaware within hours.

The Online Course

Due to the large number of people interested about this subject, I have created an online course that teaches you how to easily create (and dissolve) a US business from the comfort of your home, be it in the US or elsewhere, avoiding expensive legal fees.


The course contains 37 lectures with videos, instructions, quizzes and checklists to help you navigate through the process of setting up your US company, avoiding common pitfalls inexperienced entrepreneurs usually fall into. You will also find templates for all the necessary legal documents, which you can freely download and use right away.

As a special thank to my blog readers, I've created 100 coupons to access this course with a 50% discount. Click on the link below to redeem your discount code before I run out of invitations!




For an in-depth understanding of how to form your business in the US I recommend you this book by Constance E. Bagley.

Enjoy creating your US company!