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Ten Common Concerns with Doing Business in the United States
Table of Contents
1.Introduction2.Cultural Differences3.Language Differences4.Business Structures5.Taxation6.Raising Money from Investors7.Website Legal Issues8.Immigration Concerns9.Intellectual Property Protection10.Internet Domain Name Registration11.Hiring and Terminating Employees
Introduction
Congratulations on your decision to consider doing business abroad! Too manycompanies turn to the international market only when business falls off in the home country. Italways seems easier to sell in your home country than to export, sell, or license internationally.Even though it will take time, effort, and money, international business is a strategic way toreduce dependence on domestic demand, build new markets with different economic cycles thanone's home country, and access additional markets with an interest in your products and services.Varying business models may be suitable for international expansion. The core businessconcept may be a single product based on an invention, a unique and innovative business conceptsuited to U.S. consumers, or an expansion of an existing franchise to the United States. You haveobviously done a lot of thinking to arrive at this point and you will have a lot to learn. Thisarticle will help you become aware of and address some common issues in doing business in theUnited States.
Cultural Differences
Now that you are taking the leap into a different country, you will be dealing with adifferent culture. Cultural business mistakes are common, especially to those working in aninternational market for the first time. Even with a concerted effort to build and nurture networksand relationships, you may miss something important. These cultural issues may be mundane or personal. For example, in setting up meetings, especially business meetings, it is customary for the meeting to start promptly at the agreed upon time. It is expected that one should allow sometime for traffic and other contingencies to in order to start promptly. There may be differentnorms in your home country. In fact, some locales outside the U.S. ask if the posted meeting timeis “American time” in order to know if the start time is a firm start time.
Solution: If you will have substantial dealings and are unfamiliar with the local customs,consider the services of a local business agent.
Language Differences
It goes without saying that language can be an issue. When I was in France, CentralAmerica, and South America, the locals had a good laugh at my basic French and Spanishlanguage skills. Fortunately, those weren't business situations. The language issue is important because of its impact on many areas of the expanding business, from branding to legal liability.The impact of failing to consider language issue can range from embarrassment to financialimpact. For example, the United States automobile company sought to sell one of its cars inLatin America. The car was called the “Nova,” which brings to mind the sky, a pleasant image toUnited States consumers. Well, the Spanish/French/Portuguese language readers of this postrecognize that “No va” means no go... which not a good association for a car. You can appreciate
that the cars did not sell well under that brand name. Other related language failures are just asserious. For example, disclaiming warranties in the United States requires precise language. Lack of precise understanding of the language can leave one exposed to unplanned liabilities.For common languages like Spanish, French, and German, competent translation services arereadily available in the United States.
Solution: Consult a professional translator for documents or marketing material for corebusiness matters.
Business Structure
In operating your business in the United States, you will need some sort of businessstructure. The structure will vary according to the business need. Where the business is a singleinventor licensing one patent, it may be with good business judgment to forego a formal businessentity. On the other hand, a subsidiary business that plans on holding substantial assets, withemployee's and tax reporting requirements will need more detailed analysis. The situations aretoo numerous to explore whether it makes sense to operate as a proprietorship, partnership,limited liability company, S corporation, or C corporation, so I will present some commonfactors and issues in the decision.First, don't fall prey to the myth that your business must be formed in Delaware or Nevada. This internet lore is prevalent, mentioning such advantages as lower filing fees, lower taxes, minimal capital requirements, and privacy of the owners and officers. For some percentageof businesses, it is prudent to form in those states. However, without specific business, legal, or taxation reasons, one should not blindly form a business in those states.One negative result of blindly following the myth is the ability to use the state courts. The
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