• Access and hire global talent & deploy them anywhere in the world
  • Remove restriction from only hiring from local markets
  • Enter any international market without the requirement of opening a local entity

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that needs to be done and documentation required.

Expanding to countries such as the USA – which is characterized by a diverse, innovative, and highly productive workforce, multifaceted employment and tax laws, a well-developed infrastructure network, an economy fueled by national resources, and leading sectors in finance, real estate, manufacturing, insurance, and retail – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Ensuring compliance without the sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.

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USA – The Economy

The economy of the United States is a highly developed market economy. It is the world’s largest economy by nominal GDP and net wealth, and the second largest by purchasing power parity (PPP), one step behind China.

The country hosts the most developed, liquid, flexible, and efficient financial markets in the world, and benefits from a wide range of funding sources – from banks and investment firms to venture capitalists and angel investors – that enable innovation and expansion.

The U.S. economy offers the largest consumer market on earth with a GDP of $20 trillion and 334 million people. Household spending is the highest in the world, and accounts for nearly a third of global household consumption.

The nation’s labor market attracts immigrants from all over the world, with its net migration rate being among the highest in the world.

The U.S. is also the most technologically powerful and innovative economy in the world, with its firms being at or near the forefront of technological advances – especially in artificial intelligence, computers, pharmaceuticals, and certain types of equipment (medical, aerospace, and military).

The U.S.’ strongest sectors include real estate, services, manufacturing, and retail, and is a recognized leader is research and development, registering more international patents than any other country.

Another strength of the U.S. economy also includes its dollar is the most popular currency for international transactions and is the world’s foremost reserve currency. Several countries use the US dollar as their official or de facto currency.

The United States is also the world’s largest importer and second largest exporter and has free-trade agreements with over 20 countries, including Mexico, Canada, Australia, and South Korea.

Geographically, the United States is home to vast and varied landscapes with abundant natural resources. Its diverse regions connected by an expansive infrastructure network and services that help companies efficiently produce and move their products.  The USA also has strong international ties – it is a founding member of the United Nations, World Bank, International Monetary Fund, NATO, the Organization of American states, and other international organizations.

Small and Medium-Sized Companies

Small and Medium-Sized Businesses (SMEs) in the US play a significant role in the country’s economy and are vital to its economic development and job creation.

Small businesses are defined as “firms with fewer than 500 employees”, according to the US Small Business Administration.

In 2021, the number of small businesses reached 32.5 million, which make up nearly all U.S businesses (99.9%). Out of this total, over 5 million of them recorded having less than 20 employees.

US SMES generate about 44% of economic activity and the employment of 61.2 million people, which accounts for 46.8% of the country’s employees.

However, the popularity of small businesses does depend on the state – California holds the top spot with 4.2 million small businesses, and employing 48.2% of the state’s employees, which is higher than the national average.

Other hotspots for small businesses include:

  • Texas: 3 million
  • Florida: 2.8 million
  • New York: 2.3 million
  • Illinois: 1.2 million
CountryThe United States of America
CapitalWashington D.C.
No. of States/Provinces50 states
Principal CitiesNew York, Los Angeles, Chicago, Houston, San Diego, Dallas, San Francisco, Las Vegas, New Orleans, Miami, Oakland, Atlanta, Colorado Springs, Boston, Detroit, Seattle, and Denver
Language(s)English (US)
Local CurrencyDollars (USD$)
Major ReligionChristianity
Date Formatmm/dd/yyyy
Time ZoneCentral Standard Time (GMT-6), Mountain Standard Time (GMT-7), Pacific Standard Time (GMT-8), Alaska Standard Time (GMT-9), Hawaii-Aleutian Standard Time (GMT-10)
Country Dial Code+1
Population332.5 million people
Border CountriesCanada, Mexico (Land Borders); Cuba and The Bahamas (Maritime Borders)
Tax YearJanuary 1st – December 31st
VAT %No VAT, but has a ‘Sales & Use Tax’, which varies according to the state and special jurisdictions, with the option to add another tax on top of this.
Minimum Wage$7.25 per hour
Taxpayer Identification NumbersSocial Security Number (SSN)
Individual Taxpayer Identification Number (ITIN)
Employer Identification Number (EIN)
Preparer Taxpayer Identification Number (PTIN)
Leading SectorsFinance, Insurance, Manufacturing, Retail, Information Technology
Main importsAgricultural products (10.5%), Fuels and mining products (10.7%), Manufacturers (78.4%), Others (4.2%)
Main exportsAgricultural products (10.7%), Fuels and mining products (9.4%), Manufacturers (74.8%), Others (5.1%)
Main trading partnersCanada, Mexico, China, Japan, United Kingdom, Germany
Government TypeFederal presidential constitutional republic
Current Prime MinisterJoe Biden

The Main Sectors of the USA Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

  1. Real Estate – Also known as the housing sector, this industry plays an integral role in the US economy. It is currently the largest sector of the US economy, bringing in a GDP value of over $1.15 trillion in 2018.

    This sector contributes to the economy in two parts – the first, which consists of consumer spending through rent, and household utilities, whilst the second consists of construction of new units, selling, or property investment such as residential remodeling.

     This sector also plays a critical role in employment, with over 3.6 million people employed in real estate.
  2. Finance and Insurance – This sector is another top industry in the United States of America, contributing over $1.5 trillion to the country’s GDP in 2018.

    The industry consists of four distinct sectors, which include:

    i) insurance carriers
    ii) credit mediation and Federal Reserve banks
    iii) commodity contracts and securities
    iv) trusts, funds, and other financial vehicles

    The growth of this industry has been critical to the growth of the US economy, contributing to the facilitation of US exports. This sector is also estimated to employ over 7.6 million people as of 2022.
  3. Tourism and Travel – This sector is a GDP powerhouse, contributing around $1.5 trillion of revenue to the country’s economy in 2021 and employing 5.32 million of the country’s workforce.

    There are over 25 subsectors that make up the tourism and travel industry, there are 3 that account for over half of the total output:

     i) Accommodations: the largest of the top three subsectors, accounting for almost a fifth of the travel and tourism-related spending, supporting over 2.1 million U.S. jobs.

    ii) Air Travel: This subsector accounts for nearly 17% of the total sector spending and supports nearly 900,000 U.S. jobs.

    iii) Food Services: Accounts for about 16% of spending, supporting almost 2.1 million U.S. jobs.
  4. Retail – The retail industry in the United States provides an openly competitive environment which fosters strong business operations and encourages innovation. The industry also benefits from well-established distribution channels.

    This sector was estimated to make over $4 trillion in sales, especially with the rise in e-Commerce, and supports over 42 million jobs.
  5. Manufacturing (Machinery & Equipment) – Machinery manufacturing is one of the largest and most competitive sectors in the US manufacturing industry, providing essential and highly sophisticated technology for many service industries, as well as other manufacturing industries.

    More than 1 million Americans are employed in this sector.

    Thousands of companies have manufacturing bases in the US, with a majority of them being small and medium enterprises, and a good amount of large companies and iconic American brands trading on a global scale.

    Machinery is manufactured in almost every state in the US, but production is concentrated in the Midwest, California, and Texas.
  6. Information Technology – The US possesses the most advanced software and IT services industry in the world, with more than 40% of the trillion-dollar global IT market located in North America.

Compliance Highlights

  • The Internal Revenue Service – the nation’s tax collection agency and a bureau of the Department of the Treasury, with the aim to enforce the Internal Revenue Code enacted by Congress with integrity and fairness to all, as well as provide top-quality service to ensure that residents and citizens understand their tax responsibilities.
  • The U.S. Department of Labor – an organization with diverse functions, it seeks to foster, promote, and develop the welfare of wage earners and job seekers and retirees in the US; improve working conditions; advance employment opportunities; and assure work-related benefits and rights through a number of offices and agencies.
  • U.S. Federal Labor Relations Authority – a quasi-judicial body with three full-time members appointed by the President for fixed five-year terms, with the advice and consent of the Senate. The Authority aims to resolve unfair labor practice disputes, applications for review of decisions and orders in representation matters, and negotiability disputes arising in collective bargaining. The Authority also assists federal agencies and unions in understanding their rights and responsibilities

Labor Contracts Law

US laws set no minimum requirements for contracts and most employment relationships are ‘at will’ and can be terminated by either party, without notice or cause. However, termination must not be discriminatory or retaliatory and cannot contravene any rules dictated by individual states or municipalities.

Fixed Term or Open-ended Contracts: No laws govern these. 

Probation/Trial Periods: These usually depend on company policy and typically provide for an evaluation after 90 days.

Recruitment Agency Contracts: These contract types have the potential to be problematic in their execution.

Attention must be paid to the classification of worker being supplied to a company as this has tax implications for the IRS. In placing staff, the agency must also ensure contracts with the employer observe all relevant laws pertaining to overtime, working hours, discrimination etc.

In drawing up employment contracts, if applicable, or in the written agreements that go with an ‘at will’ employment relationship, general considerations include:

  • Contracts are not a legal requirement in the US, nor need any terms be explicitly covered
  • Unlike the employment laws of most countries, the US has no restriction on the length of a fixed-term contract
  • There is no law governing probation periods although many employers have an internal policy regarding ‘introductory periods’. These typically provide for an evaluation after 90 days, but in the case of ‘at-will’ employment they have little point legally as either party can terminate when they like without cause
  • Senior managers and executives do tend to have formal written contracts, particularly dealing with compensation and severance terms
  • US law does not provide for notice periods, except where a contract provides for one or in the case of mass dismissals governed by the Worker Adjustment and Retraining Notification Act (WARN Act)


For more information, download our free guide or get in touch with our consultants here