Key decision makers in companies based abroad who contemplate expansion beyond domestic borders often cast a close eye on the United States.
Perhaps you are one of them. If so, you have focused attention on U.S. business markets and growth potential for a number of compelling reasons. The United States commands the world’s largest and most diverse economy. The opportunity for smart business players to launch and profitably nurture commercial enterprises is ever-present.
Moreover, and as noted in an authoritative Texas legal source addressing U.S. business expansion for foreign entities, the prospect of profitability exists for virtually any type of company.
Key points for foreign companies’ U.S. growth opportunities
An initial point to note concerning a non-American company’s expansion into the U.S. is the entry strategy and entity choice. A U.S. business nexus can be accomplished in various ways, for example:
- Acquisition of an already existing enterprise
- Creation of a startup or satellite entity
- Joint venture/partnership with a domestic company
- Use of U.S. entity that acts as an in-country goods or service provider or distributor
The type of structure selected for a global expansion is also a key concern. The above-cited legal source stresses that “domestic and foreign tax considerations and other concerns” might reasonably result in several entities being created.
A U.S. business expansion: Why Texas?
Texas is routinely on a short list of American states where multiple factors make growth for a foreign entity a strong possibility. Here are just a few reasons why:
- Huge global nexus (indeed, Texas ranks by itself as one of the world’s largest and most diverse economies)
- Sheer variety of established and profitable industries (companies operate broadly in sectors ranging from oil/gas, technology and space exploration to finance, banking, transportation and more)
- Attractive pro-business tax benefits
- Statewide entrepreneurial mindset that applauds innovation and new commercial participants
- Highly educated workforce, with a special abundance of talent in high-tech and specialized fields
- Competitive labor costs
- High quality of life, with notable attractions in major metro areas spanning the state
That last bullet point merits a special nod to Houston, which is at the epicenter of the state’s commercial thrust and power. The reasons why that is true are underscored in one online portrayal of the city’s business vitality and welcoming stance toward new commercial participants.
That article stresses that the vast and diverse Houston metro area “has long been a magnet for business growth.”
Learning more about why that is true can be a profitable endeavor for a business based abroad that seeks to expand to the United States.