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The United States of America is one of the most powerful economies in the world. It is built on business credits, competition, and support of entrepreneurship. The majority of self-made ultra rich persons have earned their fortunes in the USA.
Thanks to the high living standards, the purchasing power of the American consumer exceeds the purchasing power of those living in many other countries. Consumer behavior is also rather peculiar in the US: people don’t mind spending money, and they may buy goods that they do not really need. Their philosophy goes as follows: ‘If I spend a lot on other people’s products and services, they will have enough money to purchase my products or services. This ensures that we all have jobs and we all can make a living’. This is why business people love the USA so much: they stand a good chance to make profits there because the locals like spending. For this reason, many foreign entrepreneurs acquire business visas to the USA and launch business ventures in the country. There they can have a higher profit margin than they can at home.
Many Americans learn how to trade at an early stage in life. Children sell lemonade and other things at garage sales, and there are special school programs that teach the kids the basics of economics. Around 80% of American people have been engaged in small business at least for a while. Some of them have not been successful, and they had to find salaried jobs, but others made their businesses prosper. In any case, small business is an extremely important element of the American economy.
Even if it is a small remote town in the USA, you are likely to find a few cafes, restaurants, shops, and other small businesses there. The state administration supports small businesses persistently because small business owners take out loans, create jobs for other people, and pay quite a lot in taxes too.
Some foreigners buy US businesses while others create their own companies. If you are a foreign national looking to start a small business in America, you may be interested in considering the following three spheres of economy. These are the largest profit generators in the country, and thus, you have a good chance to succeed if you work in one of these industries.
Service industry
The services industry makes up more than one-third of the entire small business operations in the USA. It is rather simple to start providing some services and making some money in this way. The process of registering a small business company is extremely simple in America. You have only three visits to pay: to the Secretary of State, to the IRS, and to the bank. In the age of information technologies, personal visits may not be required as most of the things can be done online.
If you know a foreign language, you can open a language school or offer translation services. If you have a university degree in education, you can start a private school or a kindergarten. If you can play a musical instrument really well, you can teach others how to play it, and so on.
Construction industry
The construction industry is the second most popular sphere of the economy for small business companies. It makes up 12% of the entire small business operations. Similarly to providing services, it is not difficult at all to start a small construction company. What is especially attractive is the fact that you do not need higher education to work in construction. This means that you do not have to cover college tuition, which can be quite substantial in the USA.
If you have certain construction-related skills, you can use them to earn money. For example, if you know how to tile a bathroom nicely, the only problem you will have is finding the first client or two. When you have done a couple of (good) jobs, you can show the photographs of your work to other prospective clients, and they will be happy to buy the materials for you and pay you to make their bathrooms look nice and cozy. If you know how to make house roofs, you will also find clients easily. The number of one-family houses in America is innumerable and those that sit on the coast often get hit by hurricanes, unfortunately. And the roof is the first element that the houses lose to the hurricane.
Construction work never stops in America. If you have some special skills, you can join a small construction company or gather your own team of builders. Besides, making something with your hands is fun!
Healthcare industry
The healthcare industry is small businesses’ third most popular area of operations (8% to 9%). If you have a degree in medicine, the required medical equipment, and a spare room in your house, you can see the patients at home. Medical services cost a lot in America, and doctors are among the most prosperous professionals there.
However, We must note that engaging in medicine is a challenging task in America if you are a doctor from a foreign country. You can be a highly qualified specialist in a certain area of medicine and have vast work experience, but you will have to confirm your qualifications anyway when you relocate to the USA and want to provide medical services of a certain kind.
What criteria must a US company meet to qualify as a ‘small business company’? First, the company assets should not exceed 5 million dollars. Second, the annual gross income should not exceed 2 million dollars. Third, the number of people working for the company should not exceed a few hundred, but the exact number depends on each particular state.
Why is it important to bear this information in mind? Because if your annual income exceeds 2 million dollars, for example, your company will qualify as a medium size company, and this status will have certain implications as far as taxes are concerned.
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