Many Israelis are interested in developing their businesses in the United States. Establishing and managing a company in Israel is complicated, and at times very difficult, especially when considering the cost of living and heavy regulations. Therefore, naturally, many business owners turn to the American market, where the conditions are sometimes better from a business point of view.
The advantages are usually expressed in the ease with which a business can be set up and run in terms of bureaucracy, the amount of tax imposed, the amount of required resources and so on.
The question that accompanies many Israeli business owners concerns the viability of establishing a company in the US in order to expand their business activity.
Adecco Israel provides its clients with many business solutions that are tailored made for their business needs and saves them the need to have a legal entity in the designated country in the USA and in many countries across the world.
Is establishing a company in the USA worth it? What are the alternatives?
This article will give you information on the subject!
What are the Benefits of Establishing a Company Ltd. in the USA?
Logically, Israeli business owners tend to establish a company Ltd. in the United States, especially if they work in Israel within a company Ltd. Many choose to band in states such as Delaware – where the corporate law is very lenient towards business owners and the state taxes are relatively low.
Establishing a company ltd. has many advantages. For instance, a company ltd. limits the responsibility of its shareholders and protects itself in the legal aspect. Additionally, a company ltd. is protected from its shareholders in case one of them commits a crime, goes bankrupt or, God forbid, passes away.
Despite the benefits of establishing a company ltd., operating a company in a foreign country adds major challenges to business owners whose activity center is in Israel, and therefore it is important to be familiar with the limitations.
What are the Disadvantages of Establishing a Company in the USA?
First and foremost, there are many high financial costs to setting up a company.
As a result, in case the Israeli business does not have a sufficiently large amount of capital, or expectancy of high, current incomes – it would be recommended to reconsider the decision to establish a company.
Secondly, the higher the uncertainty is, the less benefits there are to be setting up a company. Israeli businesses that operate in the USA need to maintain business flexibility and agility. In case of an unstable period, such as these days, due to COVID-19 – it is not unreasonable to be required to sell the company in case of cessation of activity, which delays the departure from the country.
Thirdly, many business owners are interested in exploring the advantages between several different states, and sometimes operate in several states simultaneously in purpose to test the area. In that case, it is recommended to wait with setting up the company until making the final decision regarding which state the company will operate in.
Establishing a company, which requires the business owners to go into detail of the local law of each state, is a decision that must be considered seriously.
What are the Alternatives for Setting Up a Company?
It is possible to avoid the above-mentioned disadvantages, including the allocation of resources towards legal, financial and operative issues in a foreign country, with the services of Adecco Israel – a global company engaged in management of business solutions and human resources.
Adecco Israel helps its clients, both Israeli and foreign companies, to deal with issues relating regulations, recruitment, employment solutions, financial management, and a wide variety of additional services.
Adecco offers management solutions to business activities in the USA for businesses in Israel, which allows them to stay in Israel and easily manage the business in the US, with no need to physically be there! Nowadays, especially, there are significant restrictions on flights between countries due to COVID-19, and Adecco, being a global company, allows overcoming many business obstacles.
A few concluding words
Like any other thing in life, establishing a company has advantages and disadvantages. It is important to seriously consider the decision regarding establishing a company before jumping into the deep waters.
It is recommended to consider alternatives that could save the need to establish a company as well as save significant costs. Adecco Israel specializes in providing business and human resources solutions to businesses all over the world.
The global Adecco has branches in 66 countries worldwide, including the United States of America. As part of its many services you can get extensive financial advice, placement services, recruitment and employment services, administrative and Payroll services, advice on local regulations and many more services that will help your business succeed in the target country.
Adecco Israel saves companies the need to set up a company in the USA, and with that, saves significant operative and administrative costs.
Adecco adapts its services to perfectly fit its clients’ special business needs.
Contact us, and we will be happy to be at your service!