Company Formation and EOR Services in the USA

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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.