U.S. Expansions with Sense and Reason
Across the Pond with io
1209 North Orange Street – The Most Famous Address Nobody Knows
Business made in the USA immediately brings to mind New York’s Financial District, California’s Silicon Valley, Texas’ oil fields and the manufacturing belt around Chicago and Detroit. Wilmington, Delaware will also come to the mind of those truly in the know. After all, around 300,000 companies are headquartered in the city, which has a population of just 70,000. More than half of all Wall Street-listed companies have their base in the “Corporation Trust Center” at 1209 North Orange Street. Coca-Cola, Meta, Google, companies owned by Donald Trump or Hillary Clinton, Volkswagen subsidiaries, Deutsche Bank SPVs: They all benefit from Delaware’s favorable corporate law, which is focused among other things on extremely low taxes and the ability to form corporations anonymously.
The Opportunity of a U.S. Location
Of course, there are other tax havens in the world. However, Delaware is a worthwhile consideration when setting up a company in the USA – especially as there is currently much to be said for US expansion. For some years now, US policy has offered an attractive environment for corporate growth, culminating in stronginvestment momentum. The US government’s course of protectionism is encouraging entrepreneurial investment. Then there is the sheer size of the country. The United States boasts many different regional markets, each with its own unique characteristics and business opportunities. They are connected by a dense network of highways, railroad lines, airports and seaports, which plays into the hands of logistics and production activities and keeps supply chains stable.
The USA offers and attractive environment for entrepreneurial growth.
How should companies ideally approach U.S. market expansion?
Not for nothing is the USA the world's leading destination for foreign direct investment (FDI). International Trade predicts that they will replace China as Germany’s largest trading partner – which is already visibly trending: in 2023, the USA accounted for 15 percent of total German investment commitments. That is 15.7 billion dollars, all of which is now being invested in US projects – three times as much as in the previous year.
The only question is: What is the ideal approach to expansion into the US? After all, many other important factors come into the mix besides a new registration address. Although the country is justifiably considered to be business-friendly, the regulatory environment is somewhat complex – if only because of the federal system. Which is the right legal form? What about distribution channels or the availability of raw materials and skilled workers? Where are important suppliers and potential customers located? How do labor and patent law or trademark and insurance protection work? Who needs which one of more than 180 different visas?
Question after question. But io can shed light on them. With its many years of expertise, io can provide the knowledge it takes for successful leaps across the pond. Expertise that companies such as Bosch, BMW, Liebherr and Puma have recently benefited from.
The USA has various regional markets with individual features and business opportunities.
Many factors combine to determine successful US expansions. io can help provide the clarity you need.