If you own a business in the USA or are intending to open a business there you need to remember that there are particular quirks to the USA business system to take into account. For example, under US GAAP there’s a new lease accounting guideline (ASC 842) that you’ll have to follow. Every country has particular quirks to opening and operating a business, and the United States is no different. Here are some top tips for starting out and opening a business in the USA, whether you’re a native and are just setting out or if you’re moving from abroad to open a business.
New Lease Accounting Guidelines: ASC 842
Let’s stick with ASC 842 as an example. If you open a business in the USA and decide to take out a lease like most businesses do, you’ll need to account for them using ASC 842. ASC 842 is a new accounting update laid down by the FASB that’s intended to force companies to be a bit more transparent by showcasing their lease arrangements on their balance sheet. You need to follow ASC 842 and do likewise. It can feel a little strange because you’re divulging all of your lease arrangements but it does allow others to properly value your business going forward.
USA Tax: Payroll, Federal, and State
As well as needing to account for ASC 842, businesses in the USA may be subject to three main types of taxes: federal income tax, state income tax, and payroll taxes. Federal income tax is imposed on business income at the federal level, while state income tax may also apply depending on the state where the business is located. Payroll taxes, which include Social Security and Medicare taxes, are paid by both the employer and the employee and are used to fund these programs. Additionally, businesses may be subject to other taxes, such as sales tax, property tax, or excise tax, depending on the nature of their operations. The exact tax obligations of a business will depend on a variety of factors, such as its legal structure, location, and industry. It’s important for business owners to stay informed about their tax obligations and to consult with a tax professional to ensure compliance and minimize their tax liability.
Business Permits In The USA
The permits required for a business in the USA will depend on several factors, including the type of business, its location, and the industry. However, there are several common permits and licenses that many businesses will need to obtain, such as a business license, zoning permit, and tax registration. In addition, businesses that sell goods or services may need to obtain special licenses, such as a sales tax permit, professional license, or health permit. Certain industries may require specific permits, such as a liquor license for bars or restaurants, or a construction permit for contractors. It’s important to research the specific permit and licensing requirements for your business and to obtain them in a timely manner to avoid penalties or legal issues.
USA Intellectual Property
In the USA, there are several ways to protect intellectual property, including patents, trademarks, copyrights, and trade secrets. Patents are used to protect inventions and provide the owner with exclusive rights to make, use, and sell the invention for a certain period of time. Trademarks are used to protect logos, brand names, and slogans used in commerce, while copyrights protect original works of authorship such as music, art, and literature. Trade secrets refer to confidential business information that is not generally known to the public, and can include formulas, processes, and techniques. To protect intellectual property, individuals and companies can register their rights with the appropriate government agencies and take legal action against infringers who violate those rights.