As we all know, the US consumer market is the largest and most lucrative on earth. The U.S. has a GDP of $20 trillion and 325 million people with the highest household spending in the world, accounting for more than a quarter of global household consumption. Another almost 1.8 Billion frequent unique worldwide exchanges is made with high preference to US registered entities and true dot coms.

The US also has the most respected venture capitalists in the world; there are more VCs and deals in the investment sector here than in other countries. If you have an exciting startup idea, it is best to start a company in the US and approach investors in the US. In particular, it is good to note that VCs mainly invest in startups (registered as C-Corps/S-Corps) registered in Delaware. Notably, California registrations play their own role when it comes to new media and entertainment industries.

The American banking system isn't perfect, but there are a lot of advantages. For example, banking fees are low, the US dollar is a stable currency and is accepted virtually everywhere. Bank accounts in the U.S. are insured up to $250,000 by the U.S. government (FDIC), higher than in most European and other first world countries. US banks also offer the most perks and bonuses for U.S. credit card holders when compared to credit cards offered by banks from other countries. Also, you can easily buy and sell cryptocurrencies with US dollars with a US Bank Account.

There's basically no shortage of payment processing options in the USA, basically all the ones you've heard of are readily available. You can use Stripe, Shopify Payments, Paypal, and even high-risk payment processors with your US LLC.

One of the most popular payment processors for LLCs owned by non-US residents is Stripe. With a US LLC and Stripe, you can quickly start an online business even if Stripe is not available in your country.

Even if your country supports Stripe, you should consider a US-based Stripe account because a US-based Stripe account offers the fastest payout, in just 2 business days.  And if you are in urgent need of cash, you can even apply for instant payout which will just take a 1% processing fee.

A faster payout will inevitably allow you to improve your cash flow while running your online business. Compare this to a Stripe account from Brazil, which takes 30 days, and 7 days for a Stripe account from Singapore.

Having a US Bank also allows you to use a US Business Paypal account, which gives you instant payout at 1.5% or FREE next day payout. Meanwhile in many Caribbean countries, you have to wait until the 1st of every month or pay a sum and get it in the swift time of 7 days. God forbid you have to wait 30 days.

Perhaps the most important feature that distinguishes a U.S.-based payment processor account from accounts in other countries is that you have access to both Paypal AND Stripe Capital, the branch of Stripe that offers loans based on your past performance history. You can qualify for loans from Stripe even when you do not have any credit history, as long as you have a business registered in the US and have a steady stream of revenue for the past few months, similar to Paypal, you will receive offers even when you are not really in “need”.

If you are an online business, it is inevitable that you will need to market your products or services through paid advertising in some point in time depending on your company growth. The good news is if you are advertising with a company registered in Delaware or Wyoming, you do not have to pay sales tax, VAT or GST for every dollar you advertise on Facebook, Google or Tiktok.

In contrast, you pay 18% GST with a Indian company; 6% with a Chinese Company; 7% with a Singaporean Company; up to 12-20% VAT for some Caribbean countries; 23% with a UK company if you are not VAT-registered, because when you are not VAT-registered in the UK, you can’t do a reverse-charge, and thus pay 23% on Ireland VAT rates.

Believe it or not, the US is among the few countries where registration and renewal are affordable. The process is quick and easy without having to be physically in the US. There is also no need for a lawyer, local director, or corporate secretary, for which you will have to pay high fees.

Conclusion

We hope we have convinced you by now. If you think there is another country that offers such great opportunities for online entrepreneurs or digital nomads like you, feel free to post them in the comment section below and we could discuss the pros and cons with you.

Additionally, it's just as easy to dissolve a business as it is to incorporate. If your business is not doing well in the US, you can simply dissolve it. Closing your business can cost less than US $100 in some states.

It's important to know that as a business, some countries require you to spend a lot of time on annual compliance. Some countries even require you to have your books audited by a certified public accountant every year, no matter how small your business is. In some cases, you may even need a local director in the country, such as in Singapore. If you do not have anyone in the country, you will have to pay a few thousand dollars a year just to have someone as a nominee director. Not to mention, this is even more difficult if you are registering a company in a country whose language you do not speak.

Fortunately, if you register a US company in the US, everything is simple. It can be 100% foreign owned. And if you register a US LLC, all you have to do is pay the annual reporting fee, annual Registered Agent Service and file the Form 5472 if you have no federal tax liabilities. Structuring your tax-free US LLC is easier than you imagine. You’d be amazed on how powerful this company structure could be.

Overall, with such great opportunities, the US is the best option for any foreigner who wants to start an online business, or service part of their business online. The fees are low, the process is easy, there is a wide range of alternatives for payment processing and most of all, the availability of capital is very high, unbeatable if you ask us. Best of all, you can make it totally tax-free!