How to Start Your Business in the U.S. from Colombia: Complete Guide

Expanding your business from Colombia to the United States is a strategic move filled with benefits. As one of the world's largest and most diversified markets, the U.S. offers growth opportunities, tax advantages, and strong asset protection for international entrepreneurs.

In this guide, we explain step-by-step how to start a business in the U.S., from choosing the right structure to opening a bank account. Plus, learn how Prodezk simplifies the process so you can start confidently and without complications.

1. Key Benefits of Starting a Business in the U.S. for Colombian Entrepreneurs

The U.S. market is one of the most attractive globally, especially for Colombian entrepreneurs looking to expand their businesses. Key advantages include:

• Access to a larger market: The United States has one of the most diversified economies and the highest number of consumers.
• Tax incentives: States like Florida and Delaware offer significant tax benefits for foreign businesses.
• Asset protection: LLCs in the U.S. protect your personal assets from business debts or liabilities.

Example: María Fernanda, a Colombian entrepreneur, decided to open an LLC in Wyoming to reduce her company’s tax burden while accessing new markets, allowing her to expand safely.

2. Step-by-Step Guide to Starting Your Business in the U.S. from Colombia

Step 1: Choose the Right Business Structure - LLC vs. C-Corp

‍Selecting the right structure is the first step to forming your company in the U.S. The most common options are:

• LLC (Limited Liability Company): Ideal for protecting your personal assets and enjoying a flexible tax structure. Additionally, LLC income can pass through to your personal tax return, avoiding double taxation.
• C-Corp: This is a good option if you plan to seek investors or issue shares, though it involves double taxation (corporate and personal taxes on dividends).

If you’re starting out or want simplified tax management, an LLC is typically the best choice for Colombian entrepreneurs.

Step 2: Choose the State to Register Your Business

‍Not all U.S. states offer the same tax benefits. Recommended states include:

• Delaware: Known for business-friendly laws and low corporate tax rates.
• Wyoming: Attractive for LLC, as it has no personal or corporate income tax.
• Florida: Ideal if you plan to establish a physical office in the U.S., with a rapidly growing economy.

Example: Carlos Andrés chose Florida to leverage its proximity to Latin America and the growth of its tech sector.

Step 3: Register Your Business Name and Appoint a Registered Agent

‍Once you select the structure and state, you need to register your business:

• Business name: Ensure it is unique within the state where you’ll register.
• Registered agent: You’ll need a registered agent to receive legal documents in the U.S.; Prodezk offers this service to simplify the process.
• File Articles of Organization: This document formalizes the creation of the company with the Secretary of State.

Step 4: Why and How to Obtain an Employer Identification Number (EIN) in the U.S.

‍The EIN (Employer Identification Number) is essential for any business in the U.S. and is similar to the NIT in Colombia. This number is necessary for:

• Opening a bank account: Access essential financial services in the U.S.
• Filing taxes: Required for compliance with tax obligations.
• Hiring employees: Necessary to meet legal employment requirements.

The EIN application is quick and straightforward. Having this number is crucial for operating legally in the U.S., and Prodezk can help you obtain it, ensuring you meet all necessary requirements from the start.

Step 5: How and Why to Open a Business Bank Account in the U.S.

Opening a U.S. bank account is essential to manage income in dollars and access financing. Banks like Chase, Bank of America, and digital options like Mercury and Brex offer business accounts tailored for foreign companies, making it easier to receive international payments and keep accounting simple.

Choosing banks with digital solutions like Mercury can simplify account access and management without needing U.S. residency.

3. Main Benefits of Starting an LLC in the U.S. for Colombian Entrepreneurs

Starting an LLC in the U.S. offers significant advantages over business structures in Colombia:

• Lower corporate tax: Corporate taxes in the U.S. are 21%, while in Colombia is 35%.
• Avoids double taxation: U.S. LLCs allow income to pass through to the owner’s personal tax return, avoiding double taxation and improving profitability.
• Asset protection: LLC owners' personal assets are protected from business debts and liabilities.
• More flexible regulatory environment: U.S. regulations are less restrictive, facilitating dynamic expansion.

These advantages allow Colombian entrepreneurs to operate in a more favorable and profitable environment.

4. Specific Requirements for Colombians Starting a Business in the U.S.

For Colombian citizens, the process of starting a business in the U.S. is almost the same as it is for U.S. residents, but there are a few additional considerations:

• No work visa needed: You don’t need a work visa to start a business in the U.S., making it easier to do so from abroad. However, if you don’t have a Social Security Number (SSN), you’ll need an ITIN (Individual Taxpayer Identification Number).
• IRS compliance: Even if you don’t live in the U.S., your business must comply with federal and local tax laws, including reporting and paying taxes.

Prodezk is here to support you every step of the way, ensuring compliance and helping you avoid penalties.

5. How Prodezk Can Help You Start Your Business in the U.S. from Colombia

At Prodezk, we offer a comprehensive service to help you set up your business in the United States, covering everything from choosing the right business structure to opening bank accounts.

• LLC or Corporation Formation: We guide you in selecting the right structure and manage all legal paperwork.
• EIN Registration: We facilitate your company’s registration with the U.S. tax system.
• Bank account opening: We assist you in opening a business bank account in the U.S., even if you don’t reside in the country.

Ready to Expand Your Business to the U.S.?

Contact us for a free consultation and learn how Prodezk can simplify the process of starting your business in the U.S. from Colombia without complications.

Frequently Asked Questions (FAQ)

• Do I need an SSN to start a business in the U.S. from Colombia?
  No, you can start a business without an SSN. If you don’t have one, you’ll need an ITIN (Individual Taxpayer Identification Number).
• What is the best business structure for a small business?
  An LLC is generally the best option for small businesses, offering tax flexibility and personal asset protection.
• What taxes do I need to pay if I register a business in the U.S. as a Colombian?
  Taxes depend on the business structure and the state where you register your business. It’s recommended to consult a tax advisor to ensure compliance.