Guide for Brazilians: How to Open a Successful Company in the United States.

30/05/2024

Opening a company in the United States can be an excellent opportunity for Brazilians looking to expand their business and take advantage of the vast American market. However, to ensure success, it is crucial to understand and follow a series of steps and legal requirements, as well as adopting effective management practices.

This guide details the main points that a Brazilian resident in the USA needs to know to open a company and prosper.

1. Choosing the Company Structure

Choosing the legal structure of your company is one of the first and most important decisions to be made. The main structures are:

Sole Proprietorship: Easy to create, but the owner assumes all legal and financial responsibility.
Partnership: Involves two or more owners. It can be general (shared liability) or limited (investment limited liability).
Limited Liability Company (LLC): Offers owners limited liability protection and operational flexibility.
Corporation (Corp or Inc): Separate legal entity that can offer shares. It can be a C Corporation (taxed separately) or an S Corporation (profits/debt passed to shareholders).

2. Company Registration

After choosing the structure, it is necessary to register the company:

Company Name: Check the availability of the chosen name on the website of the state where you intend to register the company.
Registered Agent: Person or entity designated to receive legal documents on behalf of the company.
Incorporation Documents: For LLCs and Corporations, file the necessary documents (such as the Certificate of Formation for LLCs or the Articles of Incorporation for Corporations) with the state.

3. Obtaining Licenses and Permissions

Depending on the type of business and location, you may need to obtain various licenses and permits:

Business License: Generally required to operate legally.
Specific Licenses: Related to specific sectors, such as food, alcoholic beverages, healthcare, etc.
Zoning Permits: To ensure that the location of operation is suitable for the type of business.

4. Employer Identification Number (EIN)

The EIN is a nine-digit number issued by the IRS (Internal Revenue Service) used to identify the company for tax purposes. It is necessary to open a business bank account, hire employees, and meet tax obligations.

5. Opening a Business Bank Account

Separating personal and business finances is crucial. To open a business bank account, you generally need:

EIN
Company registration documents
Personal identification

6. Hiring Employees

If you plan to hire employees, it is essential to comply with all labor laws:

IRS Registration: For tax withholding.
Unemployment Insurance: Depending on the state.
Workers’ Compensation Insurance: Mandatory insurance in most states.
Compliance with Labor Laws: Including minimum wage, overtime and working conditions.

7. Accounting and Financial Management System

Maintaining an accurate accounting system is vital to the success of any business. Consider hiring an accountant or using accounting software to:

Track income and expenses
Prepare and file taxes
Manage payroll
Monitor cash flow

8. Marketing and Business Development

To attract customers and grow, invest in effective marketing strategies. Remember to count on Spanda, a marketing agency specialized in serving Brazilian businesspeople in the United States!

Marketing Plan: Define objectives, target audience, budget and tactics.
Digital Marketing: Use SEO, SEM, social media and email marketing.
Partnerships and Networking: Build relationships with other companies and influencers in your industry.

9. Understanding Tax Obligations

Taxes in the US can be complex, with different levels of government (federal, state and local) imposing taxes. Key obligations include:

Income Tax: Federal and, in some cases, state.
Sales Tax: Sales tax collected on commercial transactions.
Payroll Tax: Taxes on employee payroll.
Annual Report: Some companies are required to submit annual reports to the state.

10. Legal Support and Consultancy

Having a business lawyer can be crucial to navigating legal requirements and protecting your company from litigation. Additionally, consider consulting immigration experts to ensure that you and your foreign employees are in compliance with immigration laws.

Conclusion

Opening a company in the United States as a Brazilian resident involves several steps and legal considerations. With careful planning and the right guidance, it is possible to not only establish a business, but also achieve success in the competitive American market. Adopting effective management practices and investing in marketing are fundamental to long-term prosperity. Good luck on your entrepreneurial journey!