The U.S. economy is the strongest and most developed economy in the world. Its main backbone is small and medium-sized businesses, as well as a sophisticated taxation system for people and businesses. Part of the economic superiority of the United States also comes from the fact that each region is partly independent in its decisions from the central government.
Despite the fact that half of the country’s economy is based on the creation and development of private enterprises and companies, it is not so easy to open a business in this country. It’s all about a confusing system of certifications, taxation, and various laws regarding labor, safety, and labor regulations.
The U.S. tax code requires every citizen and resident to pay income tax. The average rate in the country is about 20-25%, however you should remember that each state has the right to set its own income tax, so somewhere it can be 20% and somewhere it can be 40% (state governments do not have the right to raise tax above 40%). Income tax is also imposed on private businesses.
In addition to the basic income tax there is a property tax. Again, it can vary greatly from region to region. For example, the lowest property tax is in Ohio, Texas, Kansas, and the highest in California, New York. There are also additional mandatory state taxes that all residents of a particular state must pay.
Optional taxes include taxes on gun ownership, taxes on certain types of goods/services, and use of public infrastructure. All taxes are closely monitored, and in case of nonpayment or delay in payment you may be fined heavily (for example, if we are talking about income tax, the penalty could be 100% of your income for one year).
In certain cases, non-payment may result in imprisonment and/or closure/suspension of the business. Therefore, before starting a business in America, it is advisable to thoroughly research the tax laws of the country and state where you plan to open your business. It is also a good idea to use the services of a knowledgeable lawyer.
The law of the USA on the taxation of foreign accounts requires separate consideration. It is necessary to know its basis for those who are planning to come to America on a work visa, trade with companies that are officially registered in this country, open a subsidiary enterprise of an existing company in your country, take part in lotteries and play in the casinos.
According to this law, all profits that are kept in foreign accounts are taxed. There is also a risk of overpaying this tax, because in addition to paying fees to the American side, the legislation of another country may require you to pay taxes under its tax protocol. However, if you enter into a certain contract, you will only pay taxes to one party.
While in America, never try to violate its tax laws. The special services that check your tax receipts are so good that they can literally hold you accountable for a few unpaid cents. This partly explains why business owners are trying less and less to hire illegals, and Americans themselves are afraid of having trouble with the IRS.
Also the country’s laws have a serious impact on the business sector of society. Since private enterprises are the backbone of the US economy, antitrust and antitrust laws have been issued which prevent certain companies from taking a market share above a certain percentage and impose additional taxes, restrictions and penalties. These laws mostly apply to large concerns, small and medium-sized businesses in the country are not easy to open and develop, but the government mostly helps beginners.