Business in the USA

Today, the United States of America is one of the first countries in the world to attract fintech startups. Well-known cryptocurrency exchanges work here and US fintech companies, including Coinbase, Stripe, Neobank Chime and others. Thanks to favorable business conditions and good prospects, the US market is attractive for both beginners and experienced entrepreneurs and, of course, for those who develop blockchain business, because the crypt has long been used as a payment system.

The US jurisdiction has the most investors, which is very attractive for fintech and blockchain startups. Therefore, many entrepreneurs want to register a company in the States, and for this you need to study the regulation of crypto and fintech business. Among the fintech services in the country’s market are:

• cybersecurity;
• blockchain and cryptocurrency;
• mobile payments;
• crowdfunding platforms, etc.

In the United States, at the federal level, there are no special rules for participants in the crypto business. However, based on the characteristics and financial activities of firms offering exchange services or cryptocurrency moderators, they can be classified as “money senders”, have a financial license and meet the stated standards.

US business tax

The US tax system has three levels: federal, state and local. Federal and state taxes are separate from each other. At all levels, certain powers to levy taxes are provided. Each state has its own tax system, which differs from the system in other regions. The federal government cannot interfere with the tax system of each state.

The principle of parallelism works, therefore US business tax may be charged at all three levels. Of course, US taxes are lower than the federal tax rate. Within the borders of each state, there are also several jurisdictions – counties or cities – that collect their own taxes. The system is complex and multi-layered.

The main types of taxation in the United States:

1. Income tax. Personal income tax takes more than 50%.
2. Corporate income tax. Since recently, the rate has been fixed at 21%.
3. Sales and use tax. It is distributed throughout most of the United States (not at the federal level) and can be as high as 11%.
4. Property tax. It is charged by owners of residential and commercial real estate, based on the cost of the latter.
5. Social security contributions. They depend on the amount of wages paid.
6. Capital gains tax.
7. Excises.

How to register a startup in the USA?

The beginning of any commercial enterprise is preceded not by the registration of a business entity or the signing of an agreement, but by the detailed development of various business ideas and business development strategies. In order for a company to be called a startup, it must meet certain criteria:

• the business idea must be fundamentally new;
• the product creator wants to solve an existing problem: optimize promotion, etc.;
• investors invest in business projects, not in existing production.

For Company registration you need to submit constituent documents to the Department of Corporations of the State, draw up a shareholder agreement. Next, you need to obtain an employer identification code from the tax office and apply for the required license.According to foreigners, the most favourable states to live in the USA: Colorado, Massachusetts, New Hampshire, Minnesota and Delaware. Offshore in Delaware – the most common American offshore for citizens, including from Ukraine. Delaware has unique laws that are unparalleled throughout the country. The owners of corporations are liable to the extent of the amount they have invested in the foundation and development of their company. A stable economy has ensured the popularity of Delaware as a state in which large companies in Europe and the United States successfully operate.

Ideas for business in the USA

New business ideas in the USA appear almost every day. Everything is aimed at making the lives of American citizens as easy as possible. Great potential for development have:

• delivery of products using drones and other robotics;
• creation and production of smart devices for the home;
• the sphere of entertainment with the help of virtual reality;
• vending machines.

Those who are not yet ready for nanotechnology can pay attention to the ideas that have already conquered America. This:

• ordering food through the application;
• the ability to charge gadgets on the road;
• selling fast food to those stuck in traffic;
• cases for gadgets with a compartment for bank cards;
• cooking pizza according to the client’s drawing;
• beauty salon in a van.

In addition, for the United States relevant digital transformation of business – introduction of information technologies into business processes. An increasing number of business transactions are taking place in the digital space. The approach to managing business projects and communicating with clients is changing. Digitalization opens up new opportunities for work, reduces logistics costs and increases customer focus.

How to patent an idea in the US?

The patent in this case is registered by the patent office of the country. The legislation of the country provides US invention patent and software patenting. This is what most software developers strive for. As a result, you can get software licensing according to US law. The registration procedure includes several stages: patent search, writing application materials, filing documents, examination and the actual issuance of a patent.

Get US invention patent, can be done in the following ways:

1. According to the national applicationUSPTO United States, why indicate the use of innovation in the United States. This option is optimal for legal entities with US registration.
2. Based on a national application in another country, within a year after its submission.
3. According to the international system of the Patent Cooperation Treaty. The advantage is that the applicant has 2.5 years to complete the innovation and study the market.

In the United States, there are two types of patent applications: provisional and main. US Provisional Patent Application is very common because it provides additional features and is used only for inventions. It describes a simple scheme for how the innovation works, and gives another year to submit the main application.

Trademark registration in the USA

In the United States, much attention is paid to protecting the interests of IP holders. And if someone is already using a trademark or name, others will no longer be able to use it. Registering a trademark gives the owner protection from illegal use. There are two registration options:

• legalization in yours country  and expansion to the USA;
• direct registration in the US territory by national application.

National registration takes about a year. But such a period is relevant if there are no complaints from the official bodies involved in registration, and objections from other persons. Otherwise, the period will be extended. Therefore, documents should be carefully checked and prepared.

It is important to consider that in the USA there is a list of certain rules. In particular, before sending documents to the relevant authorities, it is necessary to prove that the brand is already active or there are plans to use it in the near future. The term of validity of a certificate confirming the right to a trademark is 10 years. However, already in the 5th year, it is necessary to apply for the use or legally justified non-use of TM.

Copyright in the USA

The most productive method of protecting your intellectual property is US copyright registration, including on NFT. The main advantage is that you can get damages for illegal use. Registration of intellectual property in the United States is an effective legal tool for protecting an object from various violations.

The Office of the Library of Congress is the responsible office where you can apply and establish the presumption that the authorship of an intellectual property object is protected by law. US law allows you to set fines for illegal exploitation, and demand reimbursement of legal support in litigation.

International copyright registration by the USA allows you to obtain a document certifying Copyright in different countries – official certificate. At the same time, one copy of it is contained at the Library of Congress. The registration procedure takes from 3 to 16 months. However, you will need to pay a registration fee of $65 and send documents from the States.

Startup visa

Are you planning to open a startup to develop a unique product? Many countries have already established start-up and entrepreneurial visa programs for innovative business owners. As for the States, they are also taking broad steps in this direction. In May 2022, the US House of Representatives and Senate created the basis for a start-up visa, paving the way for the finalization of a law that will regulate the conditions for issuance. There is hope that US lawmakers are not going to delay the launch of their start-up visa program.

To open a business in the United States, citizenship is not required. Moreover, foreign citizens receive certain benefits for opening a new business, one of which will soon be just a start-up visa, which has already been implemented with great success in many countries. Such visas are popular with start-up entrepreneurs. Startups appear in many industries, because with the help of innovative opportunities it is possible to achieve solutions to various problems. The liberal legislation of the States allows the cultivation of new ideas.

If you have an interesting start-up or have plans to develop your business in the USA, then you should sign up for a detailed consultation with our lawyers. To book a consultation, please email us at info@sion-ip.com.