Starting a business in the United States can be difficult, but setting up offshore businesses can seem daunting.
You’ve probably heard of some of the benefits of starting a business overseas, but are maybe concerned about the risks involved.
We’ve put together this list of the top five things you should know before starting an overseas company. Read on to learn more!
Tax Benefits Of An Overseas Company
One of the easiest ways to quickly start reaping the tax benefits of setting up an offshore company is to move out of the United States. Being an expat allows you to earn your first $100,000 of foreign-sourced income completely tax-free.
U.S. citizens who start an overseas company also have the benefit of tax deferment. You aren’t exempt from paying taxes, but you are able to wait as long as you want to pay them. You could potentially defer paying taxes during the entirety of your ownership, and then pay them once you sell.
Setting up a business overseas can bring great advantages to you that will help you get ahead of your competitors. If you are the first among your competitors to move to a certain region, you can establish a “first-mover advantage,” giving you much more awareness and influence in that particular region.
There may also be resources in a particular region that are not as easily accessible in the states. Moving can allow you to gain access to these resources, such as new technologies, at much cheaper rates.
The simplest and best advantage though is awareness. If you can get yourself established as a recognized brand in a region (or regions), then you will have a great advantage over your competitors.
You Should Do A Lot Of Research
In-depth market research is important to do before setting up any business, but it is especially important to do when starting a business overseas.
You should research the local population and determine how large your customer base might be when first starting out. Scout out locations that will provide you with the best awareness and influence in your particular field.
Analyze Local Marketing Strategies
Analyze other businesses in the area to learn how marketing is done in that region. Marketing is not the same everywhere in the world, so you will need to learn the tricks of the trade for the country you are moving to.
Essentially you will need to do all the prep work that you did when first starting your business before setting up an offshore company.
Embrace the Local Culture
It is also very important to embrace the local culture of the region you move to. You can’t function like a purely American company overseas. If you want to succeed, learn about the culture you’re moving to and adopt some of their practices.
When setting up a new business in the States, you have to learn the local culture of the city you are in, it is even more important to do so overseas. Understanding this is vital to international success.
If you are intrigued by the idea of setting up an offshore company, but don’t want to commit to a country too far right now, consider setting up in Latin America. The Biz Latin Hub Group is a great place to start looking at options.
Want More Resources About Starting A Business?
We hope that this has been helpful to you as you consider setting up an overseas company. If you are interested in reading more articles about starting a business, click here!