U.S. at a Glance
Macroeconomic Indicators (Data from 2010)
|
INDICATOR |
AMOUNT |
|
Population |
308,745,538 million |
|
Labor Force |
US$154.9 million |
|
Unemployment Rate |
9.7 % |
|
Minimum Wage |
Federal: US$7.25/hour
Varies in each state |
|
GDP |
US$14.66 trillion |
|
Total Exports |
US$1.27 trillion |
|
Total Imports |
US$1.903 trillion |
Source: CIA, DOL
Government Composition:
-
Federal Republic divided in 50 states, a capital district (District of Colombia/Washington D.C.) and a number of dependent areas.
-
The president is the chief of state and head of government and is elected for four years, eligible for a second term. The president shares power with a bicameral congress, which is made up of the Senate and the House of Representatives.
-
Two-party system: Democratic and Republican
-
Third parties include: Constitution Party, Green Party and Libertarian Party
Social Composition:
-
Predominantly protestant
-
Current issues between the U.S. and its neighboring countries include illegal immigration, drug trafficking and violence on the Mexico-U.S. border. There is a dispute between Canada and the U.S. about the division of the Beaufort Sea.
-
Terrorism and the U.S. Naval Base at Guantánamo Bay stand out among other international issues.
Economic Outlook:
-
The U.S. is the largest and most technologically powerful economy in the world.
-
Built on the foundation of the World Trade Organization (WTO) Agreement, the U.S. has free trade agreements with 17 countries.
-
The U.S. remains the world's most powerful nation state.
Establishing a Business in the U.S.
The following are basic steps to opening a business in the U.S. To obtain more detailed and tailored information, please contact us.
1. Determine your Business Structure
Your type of business determines which income tax return form you have to file.
Types of business classifications:
-
Corporation. Prospective shareholders exchange money, property or both, for the corporation's capital stock.
-
Limited Liability Company. Similar to a corporation, owners have limited personal liability for debts and actions; it also provides management flexibility and the benefit of pass-through taxation.
-
Partnership. Two or more individuals or businesses establish a joint relationship to carry out a trade or business. Each person contributes with money, property, labor or skills, and shares both assets and liabilities.
-
S Corporation. Corporations elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes.
-
Sole Proprietorship. An individual operates a business and owns all its assets.
2. Determine Tax Responsibilities
The type of business you operate determines what taxes you must pay and how you pay them. Consult the Internal Revenue Service United States Department of the Treasury. (www.irs.gov)
3. Obtain Licenses and Permits
Every business needs at least one federal, state or local license or permit to operate. Contact us to find out which licenses and permits apply to your company or consult the search for business licenses and permits on the U.S. Small Business Administration website. (www.sba.gov)
4. Comply with Business Employer Requirements
Generally, businesses need an Employer Identification Number (EIN or Form SS-4) that is used to identify a business entity. You also need to consider the Records for Withholding Taxes. Federal law requires employers to verify an employee's eligibility to work in the U.S. (Form I-9), among other requirements. (www.sba.gov)
5. Apply for a Business Visa *
You will need a specific visa which is determined by the type of work you will be performing in the U.S. Most temporary worker categories require that the applicant's prospective employer or agent file a petition which must be approved by U.S. Citizenship and Immigration Services (USCIS) before you can apply for a visa. There is also a NAFTA (TN) visa for specific activities which allows citizens of Canada and Mexico to work in the U.S. (www.travel.state.gov)
* See the “Visas” section for more information about types of visas and procedures.
Business Culture
The most important piece of advice Mexicans doing business in the U.S. should remember is that, in the U.S., the trend is usually analytic, so get to the point quickly because time is money.
Dos and Don’ts for doing business with Americans
Dos:
- Give gifts if you feel it’s appropriate for the business relationship. However, gifts should be modest and not of a personal nature; something to use in an office is fine.
- Address your American partners by Mr. or Mrs. initially; then change to their first name when they welcome it or when the business relationship becomes stronger.
- Dress formally. Americans are quite formal and executives commonly wear business suits.
- Keep in mind that most Americans only speak English.
- Be on time. Punctuality is extremely important and appointments are normally required.
- Make small talk before a meeting, but remember that the pace of negotiations is usually very fast.
- Use numbers and figures when negotiating. One of the most important decision factors is money, so financial aspects will be used to win most arguments.
- Keep in mind that an expert’s opinion is always taken into account.
- Americans are often open to taking risks. However, you should have a clear business plan to follow.
- Remember that once something is agreed upon, Americans are consistent and rarely change their minds.
- Understand that Americans usually negotiate on a scheme of "give and take," based on the strengths of each party. Often, they do not realize that their counterparts may only have one position.
- Make sure to always follow your partner’s company policy. Remember that deadlines and results are very important, and both professional and personal ethics are highly regarded.
Don’ts:
- Discuss personal matters during a negotiation.
- Be surprised if your counterpart does not hesitate to say “no.” Americans are very straightforward and persistent.
- Be offended if Americans show a lack of interest in other cultures. Being from the most powerful economy in the world, some have not had as much exposure to different ways of thinking. They might assume that their way is the only correct way to do something.
Import Export/Process
Importing and exporting can be complicated and confusing whether your company is in Mexico or the United States. The North American Free Trade Agreement (NAFTA) has helped to simplify and improve procedures; however, there are still improvements to be made.
Customs and Border Protection (CBP) regulates all U.S. trade. CBP does not require an importer or exporter to have a license or permit. However, depending on the commodity that is being imported or exported, other agencies may require a permit, license or other certification. In order to import or export while working in the U.S., you will need to:
1. Have an IRS number, or, if you do not have a business, have a social security number.
2. Secure the services of a licensed customs broker to represent you and deal with the necessary procedures. (e.g. entry documents)
3. Comply with the regulations and restrictions listed by CBP, including: tariff classification, valuation, marking, intellectual property rights, etc.
4. Pay dues and taxes to CBP.
Source: Customs Border Protection, U.S. Department of Homeland Security.
http://cbp.gov/xp/cgov/trade/basic_trade/
U.S. Visas
The following are the most common types of visas for doing business (or studying) in the United States. For required documentation, more visa types and general information, please contact us or visit http://mexico.usembassy.gov/visas.html
Business and Tourism (B1/B2 visas)
The B1 visa is intended for temporary business travel, including travel for negotiating contracts, attending exhibitions and conferences, short-term training, and consultations with suppliers and customers, etc. The B2 visa is intended for tourist activities, such as sightseeing, visiting friends and relatives, obtaining medical treatment, etc. The B1 and B2 visas are not valid for employment in the United States.
Domestic Employees (B1 visas)
Personal or domestic servants who are accompanying or following to join an employer in the United States are eligible for B-1 visas. This category of persons includes, but is not limited to, cooks, chauffeurs, domestic employees, valets, nannies, au pairs, gardeners and paid companions.
Investor Visas (E)
Visa for nationals of a country with which the United States maintains a treaty of
friendship, commerce and navigation who wish to go to the United States to:
-
E-1 Treaty Trader. Carry on substantial trade, principally between the United States and the treaty country.
-
E-2 Treaty Investor. Develop and direct the operations of an enterprise in which the national has invested or is in the process of investing a substantial amount of capital.
Studying in the U.S. (F, M visas)
U.S. immigration law provides two nonimmigrant visa categories for study in the United States. The "F” visa is for academic studies and the “M" visa is for nonacademic or vocational studies.
Petition-Based Employment (H, L, O, P, Q, R visas)
All of these visas require the hiring company or organization in the United States to first submit a petition to U.S. Citizenship and Immigration Services (USCIS) of the U.S. Department of Homeland Security (DHS) for permission. If the petition is approved, the company will be issued a form I-797, enabling you to apply for a visa. For more information on the petition process, go to http://www.uscis.gov/.
-
H Visa. The H Visa is intended for temporary employment in the United States. For most H Visa applicants, the visa is valid for multiple entries within one year. Depending on their country of origin, nationals of other countries may have to pay an additional H Visa issuance fee.
-
L Visa: The L Visa is for individuals who are being transferred by their company to a branch or related company in the United States. Applicants must intend to fill a managerial or executive position or have specialized knowledge. Additionally, they need to have been continuously employed by the same employer or a related company for at least one of the three years immediately preceding the visa application.
-
O or P Visa: These visas are for performers or trade workers, possessing unusual or extraordinary skills, who plan to perform, teach, coach or participate in cultural exchange in the United States.
-
Q Visa: This visa is for participants of international cultural exchange programs designed to provide practical training, employment and sharing of the participant’s native culture.
-
R Visa: Religious ministers or workers may qualify for the religious worker classification R Visa if, for the two years immediately preceding the time of application, they have been a member of a religious denomination which has a bona fide nonprofit religious organization in the United States.
NAFTA Visas (TN)
The TN (Treaty National) Visa was created after the signing of the North American Free Trade Agreement (NAFTA) in 1994 to facilitate the temporary movement of qualified professionals between Canada, Mexico and the United States. The nonimmigrant NAFTA Professional (TN) Visa allows citizens of Canada and Mexico to engage in pre-arranged business activities in the United States for a U.S. or foreign employer. Only Canadian or Mexican passport holders are eligible for TN Visas. Mexican citizens should apply for the TN Visa at the U.S. Embassy in Mexico City or at any U.S. Consulate in Mexico.
Members of International Organizations (G)
- G-1 Visa. For members of a permanent mission of a recognized government who are coming to the U.S. to work for a designated international organization.
- G-2 Visa. Intended for representatives of a recognized government traveling to the United States temporarily to attend meetings of a designated international organization.
- G-3 Visa. For representatives of non-recognized or non-member governments.
- G-4 Visa. Issued to individual personnel who are proceeding to the United States to take up an appointment at a designated international organization, including the United Nations.
Source: U.S. Embassy in Mexico City http://mexico.usembassy.gov/