The United States of America (USA) boasts the largest economy in the world and businesses across the globe are looking to set up their own entity in the USA more than ever.
According to Bureau of Economic Analysis, the GDP (Gross Domestic Product) of the USA in 2019 was $21.43 trillion USD, taking up 23% of the entire global economy.
With so much economic power, it’s no wonder why foreign businesses want to have their own slice of the American dream. Foreign businesses have several options to consider when looking to expand their business in the USA.
The first option would be for foreign companies to partner with a PEO/EOR (Professional Employer Organization/Employer of Record) to hire employees within the USA. Another option would be for firms to set up their own legal entity within the USA.
Keep reading to learn how your business can use company formation and EOR solutions to expand in the USA.


Employment Solutions in the USA
Many companies seek to outsource their employees to mitigate spending and legal complications when expanding their business to the USA.
Employment solutions give companies the opportunity to test out the local market before they commit to a new legal entity. Small businesses can really use this to their advantage. By hiring an employee in the USA, small business owners are able to bridge the cultural gap in the company.
The newly hired employee will naturally have prior knowledge of American business practices and local laws. This gives your business the chance to build a reputation, establish a network, and connect with your target audience.
Regardless of where you are located, partnering with a PEO/EOR means that you will have the benefit of managing your employee in the USA directly.
With a PEO/EOR, you are gaining another valuable member to your team, as opposed to outsourcing, where you’re merely getting a job done.
Your employee will have a better understanding of your organization, mission, and values thus helping you execute your business strategy.
Not only are employment solutions a great first step for global expansion but it is also a very cost-efficient process. Especially for smaller businesses, growth with limited resources means that hiring the right candidates is crucial.
Why choose NNRoad’s employment solutions:
- Offers a single point of contact through a dedicated account manager
- Handles payroll processing, calculating salaries and disbursement
- Calculates and files taxes
- Adheres to the highest standards of data security, stability, and data processing reliability
- Provides bilingual employment contracts
- Offers in-country legal advisory in the event of a dispute
Click here to learn more about what employment solutions NNRoad has to offer. By outsourcing HR operations through NNRoad’s global employment solutions, businesses will reap significant operating benefits, saving both time and money.


Company Formation in the USA
Due to legal complexity, recent tax reform, and foreign trade barriers, company formation in the United States can be a cumbersome process. However, there are many different reasons why the USA has become the perfect environment to start a business.
While big businesses boomed from the 2017 Tax Cuts and Job Act, small businesses are also able to reap the benefits of the recent tax reform. For instance, the new 20% Qualified Business Income Deduction allows business owners to deduct 20% of their taxable income if it’s less than $ 157,500 USD.
Another reason the USA is a great place to start a company is that consumerism has become a significant part of the American experience.
In 2019, the National Retail Federation estimated that the average American would spend $ 1050 USD on holiday spending. About 40% of consumers begin their holiday shopping before Halloween.
Starting a business in the USA means that the general population will buy into the service or product you intend to provide if you know that the demand is there.
There are also specific places in the USA that cultivate a business-friendly environment.
For example, the state of Texas is ranked second on CBNC’s list of America’s Top States for Business in 2019. Texas is well-known for having no personal income tax or corporate income tax. Florida ranked twelfth on the list and is often seen as having pro-business tax policies and a competitive cost of doing business.
Small businesses are enticed to open in states like Washington as well because of the fantastic quality of life there. There are many factors to weigh when deciding where to open your business.
If your business is ready to enter the booming American business culture, you can trust that NNRoad’s experienced professionals will help your company achieve its full potential and navigate you through the intricate incorporation process.
In the USA, businesses are categorized in one of four ways:
- Limited Liability Company (LLC)
- Corporation (also known as a “C-Corporation”)
- S-Corporation Status
- Sole proprietorship


To see a breakdown of NNRoad’s company formation process, check this article out here. Whether your company has used PEO/EOR services before and wants to take the next step or your company is ready to devote their resources to set up a legal entity immediately, NNRoad has got you covered.
Discover Our Total-Market Entry Package
NNRoad offers a complete market entry solution for companies looking for local professional support for USA market entry. This package enables you to hire employees even before your company is completely set up in the USA.
By the time your company’s formation is complete, NNRoad transfers all employment relationships to your new entity. From start to finish, we will be there for your company every step of the way.


Breaking into the American market does not have to be difficult. NNRoad’s team of experts will guide you step by step so that you can expand into the American market with confidence and peace of mind.