The benefits of registering your business in Arizona as a non-resident
Given its status as ‘the land of opportunity’, it is little wonder that more than one million people migrate to the United States each year.
The pursuit of the ‘American Dream’ is based in the belief that anyone can achieve success in a society where upward mobility is actively encouraged.
Many international companies have jumped on the bandwagon by expanding their operations into the US to cash in on the benefits of being based there.
We look at why setting up an LLC in the US is so popular and why Arizona is one of the top states for foreign entrepreneurs to base themselves.
Establishing roots in the U.S.
Anyone thinking of setting up a company in the US should register the firm’s name in every state they plan to do business.
LLCs are the best way to register your business name as they provide the protection of a legal entity rather than you operating as a sole proprietorship.
Embarking on the latter option means the company’s owner is personally responsible for all its debts if the business fails.
Having an LLC to protect your personal assets from any claims is viewed as the sensible route for anyone planning to establish business roots in the US.
Picking the right location
One of the biggest decisions company owners must consider when launching a firm in the US is choosing which state to base themselves in.
Arizona is undoubtedly one of the best options, with new businesses able to leverage a wide range of benefits to their advantage.
These include the limited liability rules we mentioned earlier, tax benefits, relaxed legislation regarding administrative requirements and flexible profit distribution.
There are also several reward schemes for start-up firms in Arizona including the Enterprise Zone Program which is designed to improve the economies of some of the distressed areas of the state.
The initiatives vary from financial or economic incentives to providing improved infrastructure, increased public services and structural rehabilitation.
The Angel Investment Tax Credit Program is one of the best support mechanisms for any businesses thinking of setting up a base in Arizona.
This provides income tax credit of up to 35% of the investment amount to qualified investors who invest in the early-stages of a qualified small business.
The Arizona Innovation Challenge, AZFAST Grants for Small Business Innovation Research (SBIR), and Arizona Innovation Accelerator Program are other schemes worth considering.
Getting the business up-and-running
While there are plenty of reasons to set up a company in Arizona, it is imperative to formulate a sustainable business plan before taking the plunge.
This point is particularly pertinent if you are planning on securing funding for the business from financial institutions or one of the incentive programs.
You will need to demonstrate why your product or services will be useful to people in Arizona. Your business ideally needs to fill a gap in the market.
Conducting market analysis will not only help you identify the size of your target audience, but will also ascertain whether there is any competition in Arizona.
If there are competitors in your business sector, your plan will need to show how your product or service differs from what they have to offer.
Every business plan should also have a comprehensive financial section. How will you fund the business? What are your sales forecasts? What is your contingency plan if you don’t hit targets?
Administrative elements such as business insurance, filing paperwork and payroll are other factors your business plan needs to cover.
Using a local accountant or business advisor to help with the plan is a sensible move, as they will be able to advise about any legal pitfalls attached to running a business in the state.
Marketing for success
You’ve registered your business, picked your location, formulated a business plan and secured funding. Now the hard work begins.
For entrepreneurs who have crossed the world from places such as Asia or Africa in pursuit of the ‘American Dream’, the next stage can also be extremely daunting.
Getting to this point might feel like an achievement, but most new businesses have to overcome plenty of hurdles before they succeed.
With that in mind, entrepreneur Ahmed Bilal advises startups to invest a significant portion of their marketing budget and time into crafting their story and mission and shouting about it from the rooftops across a wide range of platforms.
Aggressive marketing via website, social media, email and other mediums will give you the best opportunity to make a success of the new company.
With help available from the several of the enterprise schemes in the area, Arizona is unquestionably a great place for businesses to flourish.
Taking advantage of this assistance will significantly reduce the chances of your new business being one of the 50 percent that fail in the first five years.
However, as one of the fastest-growing regions in the US, Arizona clearly has the necessary tools in place to help new businesses thrive.