Canadians Looking to Open US Businesses

Benefits of Opening a US Business

When Canadians open businesses in the US, they bring three benefits to the country: money to the US, American jobs, and creativity.  There are different corporate structures available for Canadians looking to start businesses in the US. Although an LLC (Limited Liability Company) is a fairly common business structure, it can have repercussions for Canadians because it opens up the opportunity for double taxation, which affects profits. Canadians should be wary about the structures they set up in the United States and should actively seek the appropriate structure for their businesses. So, with this in mind, what exactly are the benefits of opening a US business?

One benefit of starting a US business relates to immigration. Many Canadians can qualify for an E-2 visa, which is a work visa for people working in the US in trade or in investment. This type of visa can be renewed every five years without a cap on the number of renewals. This has proven to be an easy immigration option for individuals looking to bring their work and creativity to the United States.

Defined by global innovation, the United States consistently ranks as a top country to start a business. With its expansive consumer market and skilled workforce, the US offers a dynamic opportunity for businessmen and women alike. Not only does one have the benefit of operating a business within an active, consumerist market, one also has the benefit of being protected under the US legal system. From strong intellectual property protection to legal safeguards for businesses, the opportunities to conduct a business under the US legal system provides a safe and efficient space. The World Bank has ranked the United States as one of the easiest places to conduct business, and people from all over the world have taken advantage of the business ease that has been ingrained in the American culture.

There is a wealth of research that supports the benefits of foreign entrepreneurship in the United States. According to a study by the Small Business Administration, immigrants who own businesses in the US have “higher business ownership and formation rates than non-immigrants.”+ Additionally, immigrant-owned businesses produce an average of $435,000 in sales annually. The export rates for immigrants who own businesses are greater than the rates of their non-immigrant counterparts, and this continually boosts the economy. In 2014, foreign entrepreneurs created 65.5 billion in business revenue directly from operations in the United States. In 2007, 5.9 million jobs were available in the United States as a result of the businesses created by foreign entrepreneurs.

Truly, opening a US business has been a successful option for many Canadians looking to take advantage of the opportunities available in a market dominated by technology, innovation, and productivity. Foreign entrepreneurs stimulate the US economy when they decide to bring business across the border. This route consistently pays off for the businessmen and women who decide to shift their efforts to the US. If you are looking to invest in the United States, you can begin your journey here: U.S. immigration services.

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  1. "Immigrant Entrepreneurs and Small Business Owners and their Access to Financial Capital | The U.S. Small Business Administration." Small Business Administration. N.p., n.d. Web. 06 June 2017.
  2. "Nearly 6 Million Workers Employed at Immigrant-Owned Businesses, New Report Finds." New American Economy. N.p., n.d. Web. 06 June 2017.
  3. Atlas, Michael. "U.S. LLCs AND CANADIAN RESIDENTS-A BAD COMBINATION!" Michael Atlas, CPA. N.p., 12 Apr. 2017. Web. 06 June 2017.
  4. "Why Invest in the United States." SelectUSA, n.d. Web. 05 June 2017.

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