People are doing business all over the world, but it is not easy everywhere. Some countries make life difficult for entrepreneurs, while others, on the contrary, help them to prosper. If you are planning to open a business in North America, the most suitable countries are Canada and the United States of America.
Canada is one of the few countries in the world where you can organize a successful and profitable business. It is primarily due to a large number of various government programs for the support and development of small and medium-sized businesses.
Contrary to widespread misconception, doing business in Canada is cheaper and easier than in the United States. Many favorable factors distinguish positive conditions for doing business in Canada, and among them:
- lower land prices;
- lower cost of all construction work;
- the cost of electricity in Canada today is the cheapest in the world;
- the most favorable conditions for attracting investment;
- availability of venture capital. Today there is more than 2 times more of it per capita in Canada than in the USA;
- a large number of various government programs to support and develop entrepreneurship, small and medium-sized businesses.
Advantages of doing business in Canada
Also, companies registered in Canada have the following advantages:
- a powerful brand of Canada as a center for a high-quality and high-tech products;
- it is possible to use tax credits for scientific and design developments of new products;
- the proximity of the United States, government, and developed infrastructure support create unique investment opportunities for companies registered in Canada;
- a huge market of highly professional labor resources, which, with the help of developed immigration legislation, makes it possible to attract specialists from any country in the world to projects on favorable terms for moving;
- the convenient geostrategic location allows you to work with physical goods in the markets of Asia, the European Union, and North America;
- relatively low level of living costs in the country.
The United States of America
The United States is a very attractive business destination for entrepreneurs from all over the world. In short, this is because there are three most important reasons for starting any business:
- a big amount of free money in the economy,
- simple and well-thought-out corporate legislation,
- the huge purchasing power of the population.
In 2019, the United States was ranked # 1 on the list of wealthiest countries in the world. From a business point of view, this means that the potential for any market in the US is enormous compared to any country in the world. That is why there are so many entrepreneurs from all over the world launching their startups, some of which are turning into Paypal, Google, Instamart, and WhatsApp (all launched by non-US residents).
In addition to the above, the United States takes 6th place in the ranking for ease of doing business in 2020. These numbers indicate that corporate law and its application in the United States is one of the simplest and most understandable in the world. This fact allows entrepreneurs from any country in the world to figure out how everything works just once so that there are no difficulties with further business development.
Now you need to find out which of the 50 states is the best place to start your business. If you are a US resident, then you should register a business in the state in which you live. In case you are not a US resident, it will be more profitable, from a tax point of view, to register your business in Delaware.
Why Delaware? More than half a million entrepreneurs have registered companies in Delaware, including over 50% of all US public companies in 2019 and 60% of the Fortune 500.
Delaware is considered the most business-friendly US state to register a company for the following reasons:
- the initial registration fee is minimal compared to other states;
- it offers several tax incentives for LLCs. For example, corporate tax is paid only on profits earned in the United States, i.e. all foreign profits will be tax-exempt;
- business license – not required;
- non-residents do not pay income tax;
- non-residents can take on the role of shareholders, members, directors, or business managers;
- here the fee for preparing and filing documents with the tax office is below the average market offer for similar services in other states;
- there are limited rules for doing business across this state;
- there is a separate “Chancery Court” here, created specifically to deal with claims against corporations.