Why is the company's location in the USA so important?
Your decision is made: you are going to create a company in the United States. But you are hesitating about where to locate this company: Delaware? Florida? Or perhaps Nevada?
Whatever your choice, it should not be made at random. Indeed, the state in which you are going to register your company is far more important than one might think at first glance.
Two decisive criteria
Tax benefits that vary from one state to another
The United States does not function at all like France. In the USA, the 50 states have a great deal of power. Decisions regarding education or justice are therefore not necessarily the same in Alabama, California, Maine, New Jersey, or Florida. The same applies to the tax benefits granted to American and foreign entrepreneurs.
Let us take an example:
- In Delaware, companies only have to pay U.S. federal tax: local taxes are zero.
- In Florida, entrepreneurs have to pay U.S. federal tax as well as a 5.5% tax if the company's profits exceed 50,000 dollars.
In both cases, you will benefit from tax advantages, but they will therefore not be the same.
Not all states have the same reputation
You should not only consider tax benefits when choosing the state in which to register your company in the USA. It is also important to pay attention to its reputation:
- Some states, such as Delaware, are considered tax havens.
- This is not the case in Florida, where you can launch a perfectly legitimate company.
Therefore, even though the tax benefits are greater in Delaware, it is not necessarily advisable to launch your business there. Indeed, the reputation of the state in which you will register your company is very important, especially if you plan to launch a successful and legitimate business in the USA.
Tax benefits, reputation… These are just some of the criteria to consider when deciding to establish your company in a US state.
Also discover why it is better to avoid states such as Nevada or Delaware as well as the many advantages of a state such as Florida for establishing your company.
If you have any questions about which state to choose to create your company in the United States, you can also contact one of our advisers. We will explain the differences between the states and their reputations, enabling you to make an informed choice for your future business in the USA.