Doing Business in America - Getting Started
As experts in US employment and contracting, we’ve had our share of questions over the last 23+ years, both the common and the ridiculous. This blog is going to go through some of the important items you must know when starting to do business in America.
What’s the Social Security Number, does it give access to healthcare?
The Social Security Number (SSN) isn’t access to healthcare. Your employee will need to register for a social security number, which is primarily a tax identification number and is used when creating a credit. It’s a mandatory application, but it affords very few rights to non-resident aliens (those on visas in the U.S.). In short, your employee will still need health insurance coverage. But…
Health insurance isn’t straightforward
You’ve heard the rumors and see the uproar over the Affordable Care Act (aka Obamacare). Unfortunately, as much as the Act does indicate progress for ensuring coverage for Americans (and those employed with American companies living in the U.S.), the regulations are in constant flux. Furthermore, obtaining a compliant policy can be a time-consuming process, so be sure to start your search early and use an insurance broker with experience in the health insurance market.
How do I open a US bank account?
Unlike in some countries, such as the UK, bank accounts are relatively easy to open in the US. So long as the employee brings his/her passport (with visa attached inside) and a letter from the US employer, bank accounts typically can be opened the same day. Some of the more popular banks include Bank of America, Chase (JP Morgan Chase), and Citibank. So, while finding a place to keep your money may be easy, understanding how the government will be taxing you/your employee is not.
The tax system can be a bit of a nightmare
Federal, state, and local taxes make the US tax system more complex than many of its Western contemporaries. Employment taxes differ from state to state, and can even vary by city within each state. When operating in a state, you’ll need to register with the department of revenue (tax authority) as well as ancillary labor agencies to open accounts to manage state unemployment tax and any other relevant aspects to your employer burden.
PGC partners with UK and EU businesses looking to expand into the United States, by removing the complexities associated with employment and corporate governance by acting as the employer-of-record for the UK/EU companies.
Because we manage the entire back-end process for European companies, our clients are left with the freedom to contract within the U.S., whilst maintaining minimal liability exposure in America.
Book a US expansion 1-1 to find out how you can get started in the US.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.