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Since there is no overarching law governing investment regulation in the United States, regulations are crafted based on individual laws.
Therefore, it is imperative to meticulously scrutinize specific details in accordance with state government authorities' laws and regulations.
The U.S. is a country of 50 states covering a vast swath of North America, with Alaska in the northwest and Hawaii extending the nation’s presence into the Pacific Ocean. Major Atlantic Coast cities are New York, a global finance and culture center, and capital Washington, DC. Midwestern metropolis Chicago is known for influential architecture and on the west coast, Los Angeles' Hollywood is famed for filmmaking
- Wikipedia -
Capital: Washington, D.C.
Area: 9,833,520 km2
Population: 333,287,557 (2022 estimate)
Currency: U.S. dollar ($) (USD)
Since there is no overarching law governing investment regulation in the United States, regulations are crafted based on individual laws.
Therefore, it is imperative to meticulously scrutinize specific details in accordance with state government authorities' laws and regulations.
In the United States, foreign direct investment is subject to minimal regulations, allowing for both solo and joint ventures, with no limitations on the investment form.
However, if foreign investors acquire existing companies, they must notify the U.S. Department of Commerce.
In the case of acquiring publicly listed companies, involvement with the Securities and Exchange Commission is necessary.
The most significant challenge when investing in the U.S. arises from national security-related regulations, established under Article 5201 of the Comprehensive Trade Act of 1988.
Furthermore, for national security reasons, the Export Management Amendment Act of 1985, the Defense Acquisition Improvement Act of 1986, and the National Non-Amendment Act of 1987 (Article 98) impose restrictions.
Under the Foreign Investment and National Security Act (FINSA), revised in 2007, the Committee on Foreign Investment in the United States (CFIUS), an interdepartmental organization comprising various government departments, assesses acquisitions or mergers by foreign companies in the U.S.
The Foreign Investment Risk Review Modernization Act (FIRRMA), signed into law by U.S. President Donald Trump on August 13, 2018, officially came into effect on February 13, 2020.
This legislation bolstered the authority of the Committee on Foreign Investment in the United States (CFIUS) and expanded the scope of its screening process.
Foreign investment screening is now part of the Defense Authorization Act (Title XVII), broadening the range of investment transactions subject to CFIUS review.
It comprehensively applies and assesses the concept of national security and reinforces the authority to suspend investment transactions during the screening and investigation process
The U.S. foreign investment attraction activities are more active at the state level than the federal government.
Each state government in the United States provides various benefits such as free land provision, various tax deductions or reductions, and subsidy support for economic development and job creation in the state.
Since the contents of the investment support system vary by state, details can be obtained through Select USA or the state government website.
The site serves as a portal site for attracting foreign investment as it registers not only the U.S. investment environment and investment data, but also information on major industries in the U.S., as well as help from the U.S. government.
Reference site and phone number: www.selectusa.gov , (US) 1-22-482-6800
In order to facilitate foreign investment in U.S.-based real estate, the Foreign Investment in Real Property Tax Act was passed in December 2015, and the Foreign Investment in Real Property Tax Act (FIRPTA) enacted in 1980 exempted taxes imposed on foreigners, making it easier to invest in U.S. real estate. www.irs.gov/individuals/international-taxpayers/firpta-withholding
Select USA, a member of the International Trade Administration under the Department of Commerce, is a foreign investment promotion agency at the federal level.
Phone: (US) 1-202-482-6800
Home page: http://www.selectusa.gov
Email: (Representative) info@selectusa.gov
Tax Credits and Deductions
The Internal Revenue Service offers a variety of tax credits that can be used by large and small foreign companies operating in the United States.
Tax Information for Businesses
The Internal Revenue Service provides a list of tax information for companies.
Vehicle for Business Purposes
If a personal vehicle is used only for business purposes, the cost of operating the vehicle can be deducted from the federal personal income tax.
Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips (Food and Beverage Industry)
If you are an employer in the food and beverage industry, you can get back the Social Security tax and Medicare tax paid by the employer on the income the employee earns from the tip.
Disabled Access Credit
Tax credits or tax credits are provided to companies that provide convenience to the disabled, such as removing wheelchair access roads, buildings that make it difficult for the disabled or the elderly to move.
Work Opportunity Tax Credit
If you hire a specific group of employees as an employer, you can claim 25-50% of the employee's wages as a tax credit. Eligible groups include certain veterans, certain ex-convicts, recipients of food stamps (SNAP) and other various support programs and designated community residents who continue to face significant barriers to employment.
https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit
Department of Education Funding Opportunities
The U.S. Department of Education provides subsidies through programs and competitions.
National Energy Technology Laboratory (NETL) Unsolicited Funding Proposals
U.S. Department of Energy reviews energy and energy-related research proposals focused on long-term, high-risk, high-yield technologies, provides funding
Advanced Technology Vehicle Manufacturing Loan Program
Advanced Technology Vehicles Manufacturing (ATV) loans support the development of advanced technology vehicles (ATVs) and related components in the United States.
https://www.energy.gov/lpo/advanced-technology-vehicles-manufacturing-atvm-loan-program
Clean Energy Loan Guarantee Program
To accelerate the introduction of innovative clean energy technologies, it provides loan guarantees to a wide range of energy technology-related projects, including advanced fossil energy, nuclear energy, renewable energy, and energy efficiency.
Grants.gov
If government agencies, educational institutions, non-profit institutions, and small and medium-sized companies apply for subsidies to the federal government, they can receive subsidies after screening.
Small Business Innovation Research Program(SBIR)
It subsidizes small and medium-sized enterprises that conduct innovative technology research that meets the needs of the federal government.
Regional Innovation Clusters Initiative
The U.S. Small and Medium Business Administration (SBA) provides services such as business connectivity, education, counseling, and mentoring to help small and medium-sized enterprises grow and fosters local networks among SMEs, universities and research institutes, regional economic organizations, and investors.
It also supports the commercialization of R&D for high-tech manufacturing, exports, domestic and foreign marketing, and strengthening supply chains.
HUBZone Certification
It supports SMEs located in underdeveloped cities or rural areas to make exclusive contracts in federal procurement contracts or to be placed in favorable conditions in bidding.
https://www.sba.gov/contracting/government-contracting-programs/hubzone-program
Small Business Technology Transfer Program (STTR)
It is a program that expands funding opportunities in the federal government's R&D sector to provide joint venture opportunities between small and medium-sized enterprises and non-profit research institutes and expand public/private sector partnerships.
More federal support incentive information can be found on the Select USA web page.
The Empire State Development (ESD), a department in charge of economic development under the New York State government, is in charge of supporting investment advancement, and the New York State ESD is operating the "Global New York" program to support New York companies' overseas expansion and overseas investment.
Phone: 1-212-308-2300
Email: globalny@esd.ny.gov
Select USA, a member of the International Trade Administration under the Department of Commerce, is a foreign investment promotion agency at the federal level.
Excelsior Job Program
Four types of tax deductions are provided for up to 10 years to create jobs for companies and guarantee capital investment.
Excelsior Jobs Tax Credit: up to 6.85% of salary per new job and up to 7.5% of salary per new job for Green Projects
Excelsior Investment Tax Credit: 2% of eligible investment
Excelsior Research and Development Tax Credit: 50% of federal R&D credits up to 6% of research expenditures in New York State; 50% of federal R&D credits down to 8% for green projects
Excelsior Real Property Tax Credit: Providing tax credits to companies in underdeveloped areas and industries that generate high levels of employment and investment
START-UP NY
It provides corporate tax exemptions for 10 years to new and expanded companies operating in New York State universities and supports the use of advanced research facilities, research resources, and experts in major industries through partnerships with universities.
Areas covered: retail/wholesale business, restaurants, legal/accounting, hospitals/dental, real estate/brokers, hotels, retail finance, utility/energy production, financial services, business services, etc
Employee Training Incentive Program
Tax is deducted from expenses related to the operation of training programs for existing or new employees.
A 50% tax credit of up to $10,000 per employee is provided for the cost of operating an educational program recognized by a third-party accreditation agency.
30% of the expenses paid to interns under the internship program are deducted up to $3,000 per person.
Tax benefits for investment advancement by the New York State government other than h can be found on the web page below.
https://esd.ny.gov/doing-business-ny/tax-based-incentives
Business Mentor NY
It is composed of mentors of networks in various industries such as financial management, retail, communication, IT, personnel management, public relations, sales, and marketing.
It aims to contribute to the growth of small and medium-sized enterprises by expanding a network of experts and obtaining advice from qualified experts on business-related questions and difficulties.
Entrepreneurial Assistance Centers
The Entrepreneurial Assistance Program (EAP) centers across New York State support new entrepreneurs who need basic business management skills, business concept establishment, early-stage marketing plans, and funding.
Support is related to business operations, such as business feasibility review, business concept and business plan reorganization, management rules establishment, product development and marketing, exports, financing, and loans.
Export Marketing Assistance Service Program
It supports companies based in New York State to expand their markets by entering overseas markets.
Global New York, New York State's overseas expansion support office, supports experts and identifies potential partners according to countries that want to enter.
Operational support for companies operating in New York State other than h can be found on the web page below.
https://esd.ny.gov/doing-business-ny/operational-support
Economic Development Fund Program
It provides financial support for projects that promote New York's economy through job creation and increased business activities.
The EDF program supports construction, facility expansion and restoration, machinery and equipment purchases, liquid assets, employee training, and the funds are available for property purchases, demolition, construction and repair, construction-related planning and design, and training.
Linked Deposit Program
It supports companies in New York State to borrow at low interest rates to strengthen competitiveness, expand markets, develop new products, adopt new technologies, modernize equipment, and expand facilities.
It targets manufacturing companies with less than 500 employees and service companies with less than 100 employees.
Companies with qualifications can borrow up to $2 million without limitation.
Metropolitan Economic Revitalization Fund Program
It provides loans to companies or governments investing in programs that create significant numbers of jobs in economically underdeveloped areas of the Port Osorotti area of New York, Naso, Westchester, and parts of Larkland County.
Support loans for land, building improvements/construction/renovations, $5 million for machinery and equipment purchases, or 10% of total project costs.
The interest rate is determined in consideration of market conditions and the applicant's ability to repay debts.
Center for Advanced Technology
New York State operates 15 Centers for Advanced Technology to encourage industry-academic cooperation for the development and application of new technologies.
CAT plays an important role in receiving funding from technology-based applied research, economic development, domestic and foreign cooperative research and innovation, and federal governments, associations, companies, and venture capital.
Support for growth and innovation for companies that have entered New York State investment other than h can be found on the web page below.
https://esd.ny.gov/doing-business-ny/growth-support
Business incentives in New Jersey are handled by the New Jersey Business Action Center and are arranged by the New Jersey Economic Development Authority (EDA), an independent organization for economic development in New Jersey.
ㅇ New Jersey Business Action Center
Phone: 1-866-534-7789
E-mail: https://business.nj.gov/contact-us
ㅇ New Jersey Economic Development Authority
Phone: 1-609-858-6700
E-mail: CustomerCare@njeda.com
Premier Lender Program
It supports companies to use fixed assets or capital investments by providing low-interest loans and guarantees for loans and credit limits.
The loan participation limit for the purchase of fixed assets is $2 million and the loan guarantee limit is $1.5 million.
The loan participation limit for working capital is $750,000 and the loan guarantee limit is $1.5 million.
The credit limit is guaranteed up to $750,000.
The qualification requirement is to create one new job within two years for every $65,000 in the amount of support.
Small Business Fund
Financial support is provided by providing direct loans, loan participation, and loan guarantees at fixed interest rates through a short approval period.
It provides loans up to $500,000 to small businesses or non-profit organizations with annual sales of less than $3 million to raise fixed assets or operating capital.
Small businesses that have been operating for at least a year and non-profit organizations that have been operating for more than three years are eligible for support.
Small Business Lease Grant
It supports 20% of annual leases for small businesses.
A company that meets the small business requirements defined by the Federal Small Business Administration, and the lease area must be 250 square feet or more.
Main Street Micro Business Laon Program
It provides loans up to $50,000 to small businesses with annual sales of less than $1.5 million.
It is an appropriate program for new small businesses due to its low cost and flexible loan situation period.
Economic Redevelopment and Growth(ERG) Program
Residential building projects: provide tax credits for an amount equal to 20% of the total project cost and a 10% bonus if 10% of all households are provided to middle-income households.
Commercial building projects: tax credits can be provided for 20% of the total project cost, and additional grants (Grant) can be provided depending on the project type.
Bond Financing
It is a financial support system for the purchase of duty-free bonds from manufacturers and non-profit organizations.
Tax-free bonds of $500,000 to $1 million will be provided to for-profit companies for up to 20 years for real estate and up to 10 years for equipment purchases.
The funds provided are available for capital improvement and expansion, land and building purchases, new construction, remodeling, and equipment purchases.
Salem County Energy Sales Tax Exemption
It exempts sales tax on electricity and natural gas used by manufacturers in Salem County, New Jersey.
It must be a manufacturer operating in Salem County and must have at least 50 employees, 50% of whom must work directly in relation to the manufacturing process.
Urban Enterprise Zones(UEZ) Manufacturers Energy Sales Tax Exemption
Urban Enterprise Zones companies that employ at least 250 people and 50% of the workforce directly related to the manufacturing process are exempt from sales and usage taxes on electricity and natural gas.
The qualifications for becoming Urban Enterprise Zones are as follows.
Registration of New Jersey State Corporation
Located in one of the 27 designated areas
Compliance with New Jersey's tax system
UEZ Business Certification System(http://www.nj.gov/dca/affiliates/uez/)
Angel Investor Tax Credit Program
If you invest in high-tech businesses in New Jersey, you will receive a tax credit of 10% of your investment, up to $500,000.
Companies must have capital and assets or operate offices in New Jersey, employ no more than 225 employees, and at least 75% of employees must work in New Jersey.
The fields include advanced computing, advanced materials, biotechnology, electrical devices, information technology, life science, medical devices, mobile communication, and renewable energy technology.
Technology Business Tax Certificate Transfer(NOL) Program
It supports high-tech and life science companies that do not make profits to raise capital by selling net operating losses and R&D tax credits.
In order to qualify, intellectual property rights must be applied or held, and there must be no continuous net operating profit over the past two years.
Companies with less than three years of corporate registration in New Jersey must hire at least one full-time employee, companies with three to five years of corporate registration, and companies with more than five years of corporate registration must hire at least 10 full-time employees.
Edison Innovation Fund
Funding for the development, maintenance and growth of high-tech and life sciences companies that create jobs in New Jersey.
Edison Innovation Angel Growth Fund: Advanced technology companies with commercial revenue of $250,000 or more over a 12-month period can access subordinated conversion loans of up to $250,000.
Edison Innovation VC Growth Fund: Companies with commercial revenue of $500,000 or more over a 12-month period can use subordinated conversion loans of up to $1 million.
Edison Innovation Growth Stars Fund: Companies with a 12-month commercial return of $2 million or more can access subordinated conversion loans of up to $500,000.
The borrowed funds can be used for corporate employment, product launch, product improvement, and marketing and sales.
New Jersey offers more investment advancement incentives and tax incentives, and can be found on the web page below.
https://www.njeda.com/financing-and-incentives/
ㅇ New Jersey Business Action Center
Phone: 1-800-252-2923
Address: 500 E. Monroe Street, Springfield, IL 62701 / 100 W. Randolph Street, Suite 3-400, Chicago, IL 60601
Manufacturing Illinois Chips for Real Opportunity Act (MICRO)
Tax benefits and training costs for new employees for manufacturers of microchips and semiconductors and related components
Qualification: Capital investment and new job creation within 5 years
Microchip And Semiconductor Manufacturers: $1.5B Capital Investment And Create More Than 500 Jobs
Microchip And Semiconductor Parts Manufacturers: $300M Capital Investment And More Than 150 Jobs Created
Manufacturers turning existing manufacturing facilities into microchip and semiconductor parts manufacturing: $100 million in capital investment and 75+ new jobs created
Smaller projects require the company to invest more than $20 million in capital and create 50 new jobs within 4 years
Tax credit period: (large project) 15 years / (small project) 10 years
Support for training expenses for new employees: 10% to 25% support for training expenses for employees
Real estate investment tax credit 0.5%
Tax exemptions for large projects: Retail business tax exemptions (5 years) for building materials, state utility charges exemptions (10 years) for electricity and natural gas, telecommunications consumption tax exemptions, ICC administrative fees exemptions
Construction job tax credit: 50% of the income tax increase attributable to construction wages paid in connection with the construction of the project facility is paid as a job tax credit for workers employed to construct the project; 75% for projects in energy-displaced or energy-converted areas
Reimagining Energy and Vehicles (REV)
Tax withholding for companies that manufacture renewable energy in whole or in part, including electric vehicles, batteries, charging infrastructure, recycled products, solar, wind, and energy storage, exemptions from utility charges, education subsidies, equipment and capital costs, and property tax breaks
Qualification: Need to create a certain level of capital investment and job creation (depending on Tier 1 and Tier 2 investment levels)
Economic Development for a Growing Economy (EDGE)
Tax credits and employee training benefits for up to 10 years for job creation and capital investment companies
Eligibility:
100 Companies with less than 100 employees create at least 5% of global employment or 50 new jobs (over 100 global support) / no minimum investment
100 Companies with more than 100 employees create at least 10% of global employment or 50 new jobs/minimum investment: $2,500,000
High Impact Business Program (HIB)
Provide a tax credit for investment in mega-projects such as new power generation facilities, job deductions for construction of potential high-impact projects, exemption from state sales taxes on building materials and utilities, and exemption from state sales taxes on personal property purchases used or consumed in the operation of manufacturing processes or pollution control facilities
Eligibility:
Capital investment of at least $12 million and creation of more than 500 new jobs
Maintain at least $30 million in capital investment and 1,500 full-time jobs
Located in designated location in Illinois
Establishment of qualified new power generation facilities
Business Attraction Prime Sites Capital Grant Program
Subsidies to companies that create jobs and conduct large capital investment projects when relocating or expanding businesses within Illinois
Grant support of up to $5,000 per new job creation. Can be subsidized up to $6 million
Subsidies can cover only 20% of the total capital cost of the proposed project and include new and refurbished industrial and commercial facilities such as infrastructure improvement, equipment purchase and installation. However, construction or renovation of facilities to be used as warehouses is not eligible for support
Qualification: Must be relocating or expanding business in Illinois
4 $40 million in capital investment and at least 50 new Illinois jobs created
2 $20 million capital investment and at least 100 new Illinois jobs created
Business sectors: agriculture, energy, information technology, life sciences and medical care, manufacturing, transportation and logistics
Advantage Illinois Program
A loan program for small, new businesses in Illinois as part of the State Small Business Credit Initiative funded by the U.S. federal government
Supporting companies to create jobs and improve their businesses through five segmented programs that apply below market interest rates
Eligibility: Small businesses with 750 or fewer employees worldwide
Illinois Finance Authority(IFA)
Provide incentives if conditions are more beneficial than those of the primary financial sector, which are difficult to finance or finance, among those directly contributing to the creation or retention of jobs in Illinois through low-interest loans or funding programs
Blended Financing of existing financial institutions and state-owned and guaranteed loans or funds received from the financial sector in the form of state purchases and guarantees
State tax relief is applied on the loan or bond, and low interest rates are applied only to the amount of state holdings and guarantees
Incentives may be awarded with permission from the Department of Commerce & Economics Opportunity - DCEO if new businesses are established or relocated within the state
Equally applied to all targets regardless of whether a company is a foreign company or not, nationality, etc
Eligibility:
Purchase of buildings or sites subject to occupancy
New construction or change of use
Cap IFA guarantees up to 50% of the funds used for capital equipment purchases or leases, $300,000 in purchase guarantees
Interest rates are applied 1.5% lower than the existing interest rates only for the amount of state holdings and guarantees
ㅇ Governor’s Office of Business and Economic Development(Go-Biz)
Phone: 1-877-345-4633
Address: 1325 J St., Suite 1800, Sacramento, CA 95814
California Competitive Tax Credit
It is a tax credit system provided to companies moving or entering California from other states or abroad.
It applies throughout California and is not geographically restricted.
Contracts for tax credits must be consulted with the Go-Biz office and approved by the California Competitive Tax Credit Committee. You can check the exact tax credit application period on the Go-Biz website.
https://business.ca.gov/california-competes-tax-credit/
Partial Sales and Use Tax Exemption for Manufacturing
It is a program that exempts some sales and usage taxes for R&D equipment purchases, biotechnology, and manufacturing industries in specific fields.
This applies only to state sales and usage taxes, not to taxes in certain regions, cities, and counties.
Benefits from July 1, 2014 to July 1, 2030 are provided as benefits that reduce some of the sales tax and usage tax
All manufacturers under the North American industrial code NAICS code 3111-3399, R&D costs for biotechnology, and R&D costs in physics, engineering, and life sciences for companies under the NAICS code 541711-541712 are eligible for reduction
https://www.cdtfa.ca.gov/industry/manufacturing-exemptions.htm
Sales and Use Tax Exemption – Alternative Energy Promotion Manufacturing and Advanced Transportation (Sales and Use Tax Exclusion Program)
It is a tax exemption program provided by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) and is scheduled to operate until 2025.
It is a program that deducts sales and usage taxes from both state and local governments to businesses engaged in manufacturing or cutting-edge transportation that promote alternative energy in California.
https://www.treasurer.ca.gov/caeatfa/ste/index.asp
New Employment Credit (NEC)
The new employment tax credit is a tax credit program that can be applied by companies that have paid full-time employees in administrative districts or economic development districts designated as a tax credit program that has been in effect since January 1, 2014. It will be available from January 1, 2014 to January 1, 2026.
Identification map of designated administrative districts or economic development districts:
http://maps.gis.ca.gov/gobiz/dga/default.aspx
https://www.ftb.ca.gov/file/business/credits/new-employment-credit/index.html
California Film and Television Tax Credit Program (Tax Credit Program 3.0)
It is a tax credit provided by the California Film Commission for filmmakers.
A $1.55 billion fund is allocated for five years until June 30, 2025, with an annual budget of $330 million for each fiscal year from July 1 to June 30 of the following year.
Taxpayers can deduct up to 25% of their expenses related to making movies and TV programs from taxes payable to the California State Government.
http://film.ca.gov/tax-credit/
The Soundstage Filming Tax Credit Program also provides a tax credit for 20% to 25% of the cost of studio building projects made for films produced in the tax year beginning January 1, 2022 to January 1, 2032
If you establish a company with a relocation or new investment to California, you can receive various financial support services.
The SBA Loan Guarantee provides guarantee services to small and medium-sized companies in the United States and introduces lenders to companies that lack collateral or have no guarantors.
SBA can receive loans such as 7(A) General Small Business Loans (7(a), short-term Microloan programs for small businesses, Real Estate & Equipment Loans (CDC/504), low-interest disaster loan programs supported in case of natural disasters or emergencies, and corporate expansion programs.
https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs
California Capital Access Program, CalCAP, Collateral Support Program
The California Capital Access Program (CalCAP) is a mortgage support guarantee program that allows loans to small businesses that are difficult to meet the general loan standards of participating banks and financial companies.
It guarantees that small businesses will support the shortfall of collateral on loans worth more than $50,000 to help banks and financial institutions make loans to small businesses smooth.
https://www.treasurer.ca.gov/cpcfa/calcap/collateral/
California Pollution Control Tax-Exempt Bond Financing Program
It is a program funded by tax-free bonds to California businesses that control pollution, dispose of sewage, take over, build, install waste recycling facilities, and take over and install new facilities. Interest rates that are cheaper than ordinary bank loans are applied.
https://www.treasurer.ca.gov/cpcfa/tax_exempt.asp
ㅇ Office of the Governor (Greg Abbott), Texas Economic Development
Phone: 1-512-936-0100, 0101
E-mail: adriana.cruz@gov.texas.gov
If you invest in a site designated as a Texas industrial area, you will receive a refund of consumption tax and usage tax paid to the state government.
The consumption tax and usage tax paid for construction costs, machinery and equipment purchase costs, electricity and gas expenses may be refunded, which shall be determined by the amount of investment and the number of employees.
The refund is proportional to the number of jobs generated by the investment and is set at a minimum of $2,500 to a maximum of $7,500 per employee.
Texas's top vocational training program provides training opportunities for Texas companies and workers.
Design and implement customized job training projects through collaboration between businesses, public communities and universities, human resource development committees, and economic development partners.
Through this, the technology level and wages of Texas personnel can be expected to improve.
In order to attract companies to Texas, the state government provides funds to companies that want to realize projects in Texas and provides tax benefits to induce economic development through revitalizing corporate investment.
From 2004 to 2022, it provided a total of $833.41 million, creating 114,019 new jobs.
It is a program that provides long-term loans to product development companies and small business incubators/accelerators located in Texas, usually with loans ranging from $1 million to $5 million and available for 15 to 20 years.
It targets companies that cannot receive financing in the traditional capital market
ㅇ Georgia Department of Economic Development, State Department of Economic Development
Phone: 404-962-4000
E-mail: adriana.cruz@gov.texas.gov
Each year, 159 Georgia counties are divided into four categories based on criteria such as unemployment rate, personal income, and poverty rate. Individuals may be eligible for tax deductions of up to $4,000 per person for a period of five years, depending on their county of residence.
To qualify for tax elimination, individuals must be employed in one of Georgia's strategic industries, which include manufacturing, telecommunications, broadcasting, logistics, research and development (R&D), fintech, data centers, and customer support centers, among others.
Employment must be on a full-time basis, and employers must provide insurance and pay at least the county's minimum wage or higher.
If individuals maintain their job in a qualifying industry, they can receive tax relief for the first five years.
Any unused deductions can be carried forward for up to 10 years.
This tax credit is applicable to employment positions that offer wages at least 10% higher than the county's average wage. It provides tax benefits ranging from $2,500 to $5,000 per job, depending on the average wage ratio.
Different criteria are applied for counties with low population density.
The credit is applicable within a seven-year period from the time of employment, and the tax deduction lasts for five years.
Up to 100% of corporate income tax is granted as a preference, and any excess can be used for salary withholding deductions.
Unused deductions can be carried forward for up to 10 years.
The Job Tax Credit cannot be applied for multiple applications.
This is a tax benefit designed for manufacturing and telecommunications companies that have been operating in Georgia for more than three years. To qualify, these companies must invest a minimum of $100,000 in either new or existing manufacturing plants, telecommunications facilities, or businesses and facilities that support manufacturing and telecommunications operations.
Depending on the specific location of the business, they may be eligible to deduct up to 8% of their investment.
This deduction can be used to offset up to 50% of their corporate income tax liability.
Any unused deductions can be carried forward for up to 10 years.
Eligible investments include expenses related to land acquisition, facility improvements, building purchases, machinery and equipment costs for manufacturing and telecommunications facilities, and it provides a higher percentage of tax relief for investments in recycling or pollution prevention facilities.
This program offers additional tax credits to companies that qualify for new employment tax credits or investment tax credits.
It provides extra tax benefits when there is a transaction volume increase of at least 10% compared to the previous year for Georgia businesses engaged in import and export activities through Georgia ports.
To be eligible for these benefits, the port trading volume for the base year must be a minimum of 75 tons, 5 containers, or 10 shipments.
When used in conjunction with a new employment tax credit, an additional $1,250 per new job can be deducted for a period of five years.
When combined with the investment tax deduction, the investment tax deduction rate will be increased to 5-8%, regardless of the company's actual location.
It employs at least 1,800 new employees, spends $150 million on minimum annual wages, or provides tax benefits for companies investing $450 million in Georgia.
The company must meet the above-mentioned qualifications within six years, but depending on the amount, the deadline for meeting the employment requirements can be extended to six to ten years.
You can deduct $5,250 per year per job, and you can claim it for 5 years.
It can be offset up to 100% corporate income tax.
Unused deductions are carriable for up to 10 years.
Employers who purchase or build qualified childcare facilities or provide childcare support to employees are eligible.
Purchase or construction of eligible facilities: 100% deduction of construction costs (10% deduction per year for 10 years), carry forward for 3 years.
Providing qualified facilities and supporting childcare: 75% of direct expenses, carry-over for 5 years.
It can be offset up to 50% of corporate income tax
Companies that train existing employees for the use of new facilities and new technologies are targeted.
Education programs must be approved by the Technical College System of Georgia.
Deductions equal to 50% of training costs per employee may be received, and the maximum amount of $500 per person and $1,250 per year may not be exceeded for approved training programs alone.
Up to 50% of corporate tax payments can be offset.
Unused deductions are carriable for up to 10 years
Companies operating manufacturing, distribution, logistics, software, fintech, data centers, customer centers, telecommunications, R&D facilities in Georgia can receive tax deductions for their costs if they conduct research and development.
Every year, 10% of the amount deducted from the base amount from the R&D expenses that meet the items set by the state is calculated as the tax deduction amount.
Up to 50% of the remaining corporate tax payments after other deductions are applied, and the remaining deductions can also be applied to withholding salaries.
Unused deductions are carriable for up to 10 years.
A 6-8.9% sales and usage tax is waived on the various kinds of expenditures that manufacturing facilities have to pay for their operations.
There are many types of exemptions, including machinery and equipment manufacturing, industrial machinery repairs, raw materials and packaging, energy use required for manufacturing, primary material handling equipment, pollutant management facilities, and clean room facilities.
In particular, Georgia also offers tax exemptions on sales and expenditures at data centers, high-tech companies, and distribution centers
Georgia has no state-level taxes on inventory and other real estate and personal assets. Under Georgia's Level One Freeport Law, counties and municipalities also reduce property taxes on inventories by 20% to 100%.
In particular, distributors also receive these inventory tax exemptions.
It can be used in addition to the Job Tax Credit, and can be used by medical, pharmaceutical, and medical equipment manufacturers, with an additional $1,250 reduction per applicable job creation.
Benefits can be used to pay corporate taxes, excess amounts can also be used to reduce withholding, apply for five years and carry over for 10 years
In response to Covid, a new tax credit for manufacturers of personal protective equipment and hand sanitizers will allow them to receive an additional $1,250 tax break per job on Job Tax Credit.
Applications must be made before December 31, 2024, and apply for five years as long as the job is maintained.
Digital interactive entertainment companies are eligible for a 20% tax deduction on expenditures of $250,000 or more that meet expenditure items set by Georgia.
Only interactive entertainment companies with annual sales of less than $100 million can apply.
Deductions are given on a first-come, first-served basis, and the maximum benefit a single company can receive out of $12.5 million per year cannot exceed $1.5 million per year or less of Georgia's total salary.
The benefits are part of Georgia's film, TV and interactive entertainment tax credits, and in addition to that in Georgia, they also offer musical and theatrical performance tax credits. More information on this can be found at Georgia.org/Film .
Georgia insurance companies can receive deductions for Georgia premium tax payments when creating new jobs.
Depending on the area where the company is located, deductions can be made from $750 to $3,500, and the minimum new employment conditions are also differentiated from 5 to 25 people depending on the area.
Eligible new employment should not be a pre-determined employment, should be a full-time job with more than 35 hours per week, be given the same benefits (including health insurance) as other general positions in the company, and be paid above the Georgia minimum average wage of $602.
* In addition, the Georgia Department of Economic Development provides a variety of support services, including the Quick Start program to train the manpower needed by companies and the Georgia Ready for Accelerated Development (GRAD) to help select sites for new companies.
* Details are available at https://www.georgia.org/competitive-advantages/incentives
Tax and usage tax Sales Tax and Use Tax Exemption
It exempts sales and usage taxes of 6-8.9% on the various types of expenditures that manufacturing facilities have to pay for their operations.
Expenditures for exemptions vary widely, including machinery and equipment manufacturing, industrial machinery repairs, raw materials and packaging, energy use required for manufacturing, primary material handling equipment, and equipment cleaning.
In particular, Georgia also offers tax exemptions on sales and expenditures at data centers, high-tech companies, and distribution centers.
Inventory Tax Exemption Inventory Tax Exemption
Georgia has no state-level taxes on inventory and other real estate and personal assets. Under Georgia's Level One Freeport Law, counties and municipalities also reduce property taxes on inventories by 20% to 100%.
In particular, distributors also receive these inventory tax exemptions.
* In addition, the Georgia Department of Economic Development provides a variety of support services, including the Quick Start program to train the manpower needed by companies and the Georgia Ready for Accelerated Development (GRAD) to help select sites for new companies.
* Details are available at https://www.georgia.org/competitive-advantages/incentives/tax-exemptions .
ㅇ Michigan Economic Development Corporation (MEDC), an institution in charge of economic development under the Michigan government, supports foreign companies' entry into Michigan.
Phone: 1-888-522-0103
E-mail: proctors1@michigan.org
Michigan State's Tax Reduction Policy
Michigan State exempts sales tax on machine tools, pollution-reducing devices, etc.
Property taxes of up to 50% are reduced when investing in high-tech technologies (PA 198).
If the enterprise contributes significantly to the development of the Michigan economy and (2) the enterprise receives PA-198 benefits, it will be exempted from half or the entire amount of the 6-mill State Education Tax.
Planet M
Michigan operates the Planet M program to promote the development of the automobile industry and related industries in Michigan, provides free support to automobile-related companies in connection with the Michigan Economic Development Administration (MEDC), and establishes and operates a Landing Zone for startups to settle in Michigan.
Jobs Rady Michigan Program
Handling of expenses related to recruitment and training officers for high-wage, high-skilled, or high-demand occupations. Subsidies cannot exceed $1 million at most, and repayment regulations are required at a penalty rate. (If you move more than 35% of your workforce out of Michigan or fail to maintain a basic level of employment in Michigan and/or maintain a decent new job through incentives)
ㅇ Washington State Department of Commerce
Phone: 206-256-6100
Address: Westin Tower, 2001 6th Ave, Suite # 2600, Seattle, WA 98121
http://choosewashingtonstate.com/i-need-help-with/site-selection/incentives/
Tax Benefits
The Washington State National Tax Service stipulates tax benefits for 16 items, including the semiconductor industry, renewable energy/green incentives, aerospace industry, aluminum smelting industry, and biofuel industry.
In addition to special industrial groups, it provides tax benefits to rural or community capacity building zones (CEZs), counties with high unemployment rates, or supports tax incentives across various sectors such as food manufacturing, agriculture, and general manufacturing.
Depending on each business type, various benefits such as business & operation tax reduction, sales & use tax suspension, and exemption are provided, and specific tax benefits for each business type can be found on the web page below.
https://dor.wa.gov/taxes-rates/tax-incentives/incentive-programs
Cost Support
The Washington Economic Development Finance Authority funds companies through the "Non-recourse Loan and Bond Program" (Industrial Revenue Bond).
The Washington Department of Commerce provides funding for public infrastructure to support the expansion of private companies through a program called the "Community Economic Revitalization Board (CERB)."
The Washington Department of Commerce is funding strategic R&D projects for new technologies through a program called "Research, Development and Demonstration Program RD&D - Clean Energy Fund (CEF).
The U.S. Small and Medium Business Administration is working with the Washington Department of Commerce to repay up to $5,000 as part of its international sales activities through the Export Voucher Program (STEP).
Through the "Collateral Support Program (CSP), the Washington Department of Commerce provides collateral support for small and medium-sized enterprises' loans to the extent that they can be repaid within 18 months.
Tax benefits and cost support for investment advancement by the Washington state government other than h can be found on the web page below.
http://selectusa.stateincentives.org/Programs/?State=Washington
Startup Washington
As an online resource, it provides startups and small businesses with a variety of information and resources related to funding, co-working space, venture capital connections, mentoring, and education.
http://mystartup365.com/
ScaleUp
It supports small business owners to participate in 35 hours of field training to improve financial operations and reduce operating costs to learn how to compete more effectively in the market.
Startup 365 Centers
Startup 365 centers are established in partnership with the Economic Development Competitiveness Office and local economic development institutions to provide information, resources, and on-site support to entrepreneurs and small and medium-sized enterprises.
These include finding funding sources, providing training and technical support, securing local mentors and providing access to resources, training and information to help grow.
Thrive!
It is a program that helps existing companies increase their sales by 15-30% for regional prosperity.
It focuses on internal and external strategic growth challenges such as developing new markets, simplifying operations, maximizing efficiency and human resources, improving business models, and securing competitive intelligence.
Major foreign investment regulation business areas include telecommunications, energy, transportation, and national security.
(Communication) Wireless communication business (TV, radio operation business, etc.)
* Federal Communications Warwin (FCC) is drastically easing regulations on foreign capital in telecommunications services, but there are barriers as it basically applies reciprocity with the country.
(Energy) Nuclear, Hydro, and Geotechnical Power Generation Projects
* License registration is restricted to Americans or American companies.
(Transport) Domestic air transportation, water/sea coastal transportation
* It owns ships built in the United States and acquired U.S. citizenship, and limits more than 75% of voting rights to companies to those owned by U.S. citizens.
(National Security) Various national defense-related projects
Foreign investment in the United States is implemented through the screening and approval process of the Foreign Investment Committee. Previously, transactions made for simple investment purposes or investments that do not intend to intervene in management rights were excluded from the review, but 1) transactions on real estate adjacent to military facilities or sensitive national security-related facilities. 2) Investments in companies related to core infrastructure, core technology, and personal information. 3) Investments resulting in foreign control of American enterprises. 4) Investments designed to avoid CFIUS screening were included in the screening.
Overseas or domestic goods brought into the designated area near the U.S. customs area are allowed to be brought in without an import declaration.
Imported goods are exempted if they are exported overseas after being extended to the time when import duties and expenses (Merchandise Processing Fee and tariffs, etc.) are taken out of FTZ without official customs clearance.
FTZ is located in major cities across the United States and can be designated as FTZ through the FTZ Board depending on the purpose (storage or production) of warehouses or factories in use in addition to the designated FTZ area.
https://enforcement.trade.gov/ftzpage/letters/ftzlist-map.html
The Alliance Texas Free Trade District is located 40 minutes northwest of Dallas, Texas, and covers an area of about 9,600 acres.
The Alliance Texas Free Trade Zone contributed to the economic effect of about $43 billion and the creation of about 50,000 jobs.
The Alliance Texas Free Trade Zone has a convenient and rapid logistics system and a large logistics infrastructure, so you can use complex logistics terminal services such as container cargo storage, transportation to logistics warehouses, and cargo full insurance claims through Union Pacific and BNSF, the U.S. Class 1 railway.
Located 20 minutes from Industrial Alliance Airport and DFW International Airport, it is easy to access transportation services and logistics warehouses such as FedEX, UPS, Ryder, and Excel, which are large U.S. logistics companies.
Phone: 1-817-224-6000
Fax: 1-817-224-6060
Address: 9800 Hillwood Parkway, #300, Fort Worth, TX 76177
Key benefits: Inventory Tax exemption for up to 175 days, and security enhancement effect as theft is treated as a federal crime
Federal incentives: federal incentives include tariff exemptions, delays in paying tariffs and federal commodity taxes, and choice of tariff rates with favorable conditions
Tariff Exemption: No Tariffs if re-exported
Delayed payment of customs and federal commodity taxes
Selectable tariff rates with favorable conditions
If the finished product produced in the free trade zone has a lower tariff rate than foreign materials, the tariff rate of the finished product, which is a low tariff rate when leaving the free trade zone, is applied (required for prior approval)
Virginia's first free trade zone is managed by the Virginia Port Authority.
Gloucester, Isle of Wight, James City, Mathews, Northampton, Southampton, Sussex, Surry, and York counties, Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, Williamsburg North Carolina Camden, Chowan, Currituck, Elizabeth City, Gates, Hertford, Pasquotank, Perquimans are also included.
It is classified as FTZ #20 as the most developed free trade zone in Virginia.
Russ Peaden, 804-226-8520, rpeaden@flyrichmond.com
Key benefits: import tariff reductions upon re-export, import tariff reservations until transported for consumption in the United States, tariff reductions on imported defective products, permanent goods can be stored, and FTZ can be paid with favorable tariffs among parts or finished products
Incentive Companies located in 14 counties in Michigan that border Canada or other states in the United States can receive tax breaks or exemptions.
The counties are Berrien, Branch, Cass, Chippewa, Dickinson, Gogebic, Hillsdale, Iron, Lenawee, Menominee, Monroe, St. Clair, St. Joseph and Wayne.
Phone: 1-517-373-9808
Key benefits: Provide next tax breaks for up to 12 years to eligible businesses
Business Personal Property Tax 100% reduction (PA-328)
Up to 50% reduction in taxes for logistics and distribution industries (PA-198)
The Michigan Strategic Fund Renaissance District (MSFRZ) was established to promote important projects in Michigan.
Michigan Strategic Fund Renaissance District offers significant benefits to businesses by effectively excluding state and local taxes.
It can be located anywhere in Michigan (but at least three districts are designated in rural areas) and can be reduced or excluded from property taxes.
Government-designated administrative units and financial support from the Michigan Strategic Fund.
A total of 12 counties, including Bon, Calhooun, Clinton, Greene, Jersey, Macoupin, and Madison, are in the region
It is managed by America's Central Port and is a major hub with six cross-train routes, two ports leading to the Mississippi River, and four major highways
Location of over 2,200 acres of logistics warehouses and over 2,500 acres of air cargo management facilities
Provides tariff deferral benefits for tariffs applied to imports of products into the United States prior to being transferred to the U.S. Department of Commerce, and tariff relief for imports of parts for manufacturing and assembly
Phone: +1-618-877-8444
Address: 1635 West First Street, Granite City, IL 620
Email: contact@americascentralport.com
Provide state incentives and tax incentives for businesses located in the Enterprise District of Illinois below:
https://dceo.illinois.gov/content/dam/soi/en/web/dceo/expandrelocate/incentives/taxassistance/documents/enterprise-zone-listing.pdf
Retailers' exemption from occupancy tax payments on building materials, state sales tax exemptions on purchases of personal assets used or consumed in the operation of manufacturing processes or pollution control facilities, state utility charges exemptions on electricity and natural gas, and construction job tax credits
In 1948, the port of San Francisco was authorized to establish, operate, promote, and maintain the free trade zone for the city and county of San Francisco and continues to operate.
Its jurisdiction includes San Francisco, San Mateo, Marin, Contra Costa, and Solano counties, as well as Napa and Sonoma counties, and is divided into FTZ #3.
San Francisco is a hub for future-oriented industries such as IT technology, digital media, venture capital, and life sciences, with a variety of tax credits, exemptions and incentives offered to companies developed or operated in the San Francisco Bay Area.
More information can be obtained from the website below.
Phone: 415-274-0260
Address: Pier 1, The Embarcadero San Francisco, CA 94111
Email: demetri.amaro@sfport.com
It was established in 1949 as a free trade zone operating in Seattle Harbor and is still in operation.
Its jurisdiction includes King and Snohomish counties and is divided into FTZ #5.
It contributes to reducing operating costs and increasing returns for trading companies by providing programs such as Weekly Entry Process and assembly of imported parts.
In particular, companies operating in the free trade zone can use the Weekly Entry Process, which can reduce entry and processing fees by up to 85%, and can save time and brokerage fees by paying weekly without paying daily.
Phone: 206-665-5534
Address: 2711 Alaskan Way, Seattle, WA 98121
Email: archuleta.s@portseattle.org
Georgia operates three FTZ programs: Atlanta (FTZ #26), Brunswick (FTZ #144), and Savannah (FTZ #104), offering tariff reservations, reductions or exemptions for use in Georgia, and details are as follows. Customs Reserve: Pay tariffs when goods go out of FTZ to U.S. customs territory. Tariff Exemption: Tariffs are waived if imports are exported through FTZ. Tariff reduction: Companies using FTZ can choose a lower tariff between parts tariffs or finished goods tariffs. Simplified customs procedures: Simplified Weekly Entry and documents
FTZ #26 (Atlanta):
Operations: Georgia Foreign Trade Zone, Inc
Homepage: www.georgiaftz.com
Email jbrown@georgiaftz.com
Phone number: 404-223-2296, 770-313-2058
FTZ #104 (Savannah):
Operations: World Trade Center Savannah, LLC
Homepage: www.wtcsavannah.org
Email lryan@wtcsavannah.org
Phone number: 912-447-9707
FTZ #144 (Brunswick):
Name: Brunswick and Glynn County Development Authority
Website: www.georgiasgoldenopportunity.com
Email: joanhearn@bwkeda.com
Phone number: 912- 265-6629
Area: 54,555 sq. mi. (27th largest state in the United States)
Population: 19,855,913
State: Albany
Key institutions: New York State Building, U.N. Headquarters, New York Stock Exchange
Key industries: financial, fashion, high technology, entertainment, logistics centers
Note: New York State is an economically important state in the eastern United States and is located in New York City, a global city with a population of 8.5 million.
New York State was the center of the financial and fashion industries and has recently emerged as the cradle of the tech industry, called Silicon Alley.
In Manhattan, New York City, the U.S. Stock Exchange (SEC) is located on Wall Street, the center of global stock trading, and the M&A industry is developed as well as financing companies centered on the financial industry.
Citibank, AIG, MetLife, American Express, and New York Life Insurance are home to banks, insurance, and credit card companies, as well as leading companies such as Goldman Sachs, Morgan Stanley Investment Bank, Time Warner, and Pfizer.
Area: 8,722.58 sq. mi. (47th largest state in the United States)
Population: 9.267,130
Provincial capital: Trenton
Major Institution: New Jersey State Government Building
Major industries: pharmaceuticals, biotechnology, finance, logistics, refinery industry, clothing manufacturing, etc.
Note: Due to the business-friendly policies and environmental impact provided by New Jersey, more than 300 companies, large and small, are based in New Jersey, and 30 of the Fortune 500 companies are based in New Jersey.
In addition, there are more than 1,000 multinational companies that have entered from more than 40 countries.
New Jersey's chemical industry boasts the No. 1 U.S. production performance.
According to Business Facilities Magazine, biotechnology centered on drugs ranked second in the country, and the textile industry centered on oil refining and clothing products also flourished.
In recent years, heavy industry has developed remarkably, and the electric appliance, metal, and automobile industries are thriving.
Area: 110,785.67 km2
Population: 8.52 million
Province: Richmond
Major institutions: Virginia State Government Building, State Courts, Pentagon
Major industries: water transportation (shipping), textiles, coal mining, tobacco manufacturing, fisheries and fisheries-related products, food processing and aerospace industries
Note: It is famous as a hub of the data industry, where half of the world's Internet communication volume passes, and the knowledge-intensive service industry is increasing
Area: 32,133 km2
Population: 6.05 million
Provincial capital: Annapolis
Major agencies: Maryland State Government Building, State Courts, Port of Baltimore
Key industries: education, aerospace and defense industries, IT and cybersecurity industries, bio and medical technology industries
Note: About 300 small and medium-sized buyer companies are concentrated in Maryland near Washington, D.C., so there is an active demand for joint investment, technical cooperation, and licensing.
In addition, large system integration industries and small and medium-sized IT companies for IT-related governments are developed, and the foundation of knowledge service industries such as law, accounting, and consulting is solid.
Area: 57,513 sq. mi. (24th largest state in the United States)
Population: 10,912,876
Provincial capital: Atlanta
Major institutions: Georgia State Building
Major industries: aviation, agriculture, automobiles, defense, electric vehicles, energy
Note: Georgia has been the No. 1 business hub in the southeastern U.S. for eight consecutive years, and 18 of the Fortune 500 companies are home to Coca-Cola, Delta, UPS, and Home Depot, as well as IT companies such as Microsoft, Google, Facebook, and Wal-Mart Tech Centers.
In addition, in recent years, companies such as SK, Hyundai Motor, and Hanwha have become the most active region in which related industries such as electric vehicle supply chains and solar power.
Distribution and logistics infrastructures support this include Hartsfield-Jackson International Airport, which has the world's largest passengers, Savannah Port, which has the fourth-largest volume in North America, and Brunswick Port, the largest auto-only port in the United States.
Area: 139,390 km2
Population: 10.38 million
State: Raleigh
Major institutions: North Carolina Government Building, State Courts
Major industries: tobacco industry, textile and clothing manufacturing industry, furniture, wood, forestry, paper industry, automotive and heavy equipment manufacturing industry
Area: 163,696㎡
Population: 39.78 million
Leadership: Sacramento
Major institutions: California State Government Building
Key Industries: California's largest industry is the service sector, accounting for 23.2% of the financial, insurance, real estate, and rental-related services sectors.
In addition, the professional business service sector accounts for 13.6%, and the information and communication sector, which is attracting attention as Silicon Valley and Silicon Beach, is 10.1%, showing the highest contribution to California's economic growth and showing rapid growth.
Note: California's state income (GSP) grew 6.4% year-on-year to $3.6 trillion as of 2021, boasting the largest state income in the United States.
California's largest industry is the service sector, accounting for 17.9% of the financial, insurance, real estate, and rental-related services sectors.
In addition, the professional business service sector accounts for 14.7%, and the information and communication sector, which is drawing attention as Silicon Valley and Silicon Beach, is 10%, showing the highest contribution to California's economic growth and showing rapid growth.
The Fortune 500 companies, headquartered in California, are identified as 51 (as of 2021), and their total revenue is about $401 billion, which is very important in company value, sales, and job creation.
California is also prominent in the bio, logistics, cultural content, renewable energy, and aviation and space industries, and in particular, various entertainment industries are developed around Hollywood, a neighborhood of Los Angeles.
Area: 57,92 sq. mi.
Population: 12,671,469 (2020)
Leadership: Springfield
Major institutions: State, Illinois Senate/House of Representatives, Courts
Major industries: machinery, chemicals, transportation equipment, computers and electronic equipment, agriculture and food, processed metals, electronic equipment, other plastics and rubbers
Note: Illinois is located along Lake Michigan, one of the Great Lakes, and is a transportation, agriculture, and manufacturing center.
Chicago, the largest city in the U.S. Midwest, is located.
Due to its regional characteristics located in the center of the United States, it is the center of transportation and logistics due to its well-developed aviation, railroad, and highway networks.
Agriculture, finance, and manufacturing are developed.
About 35% of the population has a four-year college or higher education, and almost half of the total working population is engaged in professional and professional technical jobs.
More than half of the 5.73 million workers are in office and administrative positions in Chicago, and about 10% are in manufacturing.
Illinois is home to 37 Fortune 500 companies, including Boeing, the world's largest aircraft producer, AbbVie, Abbott Laboratories, Walgreens, CVS, and Dere & Company.
Area: 695,662 km2
Population: 303 million
Led by Austin (www.austintexas.gov )
Major institutions: State, Texas Senate/House of Representatives, Courts
Key industries: energy, petrochemicals, telecommunications/IT, aviation
Remark: State-funded development of six major industries: telecommunications/IT, space/aeronautics, healthcare/bio, energy, petrochemicals, and advanced technologies.
Houston, Texas, is called the world's energy capital, global energy companies, and high-tech industries are developed around Dallas and Austin
Area: 704 km2
Population: 2.18 million
Major institutions: state, municipal government
Key Industries: IT, Semiconductors, Advanced Technology
Note: Capital of Texas.
The high-tech industry is concentrated and is nicknamed Silicon Hills as the cradle of startups. Major corporate materials are Dell, Tesla, IBM, Whole Food Market, Samsung Semiconductor, etc., and young and excellent labor force is actively moving in
Area: 1,000 km2
Population: 1.3 million
Major institutions: municipal government
Key industries: telecommunications/IT, high technology, space/aeronautics, finance
Note: Richardson near Dallas is called Telecom Corridor, and about 60 telecommunications companies such as global telecommunications companies AT&T, Dell, Metro PCS, and Texas Instruments were concentrated.
In addition, the aviation manufacturing and maintenance industry has developed, and global aviation companies such as Triumph Group, Bell Helicopter, Lockheed Martin, and Airbus Helicopter are located.
Other major companies include AT&T, Energy Transfer, Southwest Airlines, Texas Instruments, Exxon Mobil, Jacobs Engineering, Toyota Motors North Americas
Area: 1,624 km2
Population: 2.3 million
Major institutions: municipal government
Key Industries: Energy, Petrochemical, Medical R&D
Note: Texas is the largest oil/gas energy producer in North America, especially Houston, where oil majors, equipment companies, and research institutes are concentrated.
The Texas Medical Center, the center of the world's largest medical R&D business, is located, and the related medical industry has developed.
Key company locations include Sysco, ConocoPhillips, Enterprise Products Partners, HPE, and more
Area: 96,713 sq. mi. (11th largest state in the United States)
Population: 9.986,857
Leadership: Lansing
Major institutions: Michigan State Building
Major industries: automobile manufacturing, agriculture
Note: Michigan borders four of the Great Lakes and is the state with the largest border
with Canada. Michigan has traditionally developed manufacturing and heavy chemical industries, with 18.4% of all workers in the manufacturing industry.
The headquarters of General Motors (GM), Ford, and Fiat-Chrysler (FCA), which are collectively referred to as the manufacturer of BIG 3 finished cars in the United States, are located as the mecca of the U.S. automobile industry.
Detroit, Michigan's leading major city, suffered bankruptcy in 2010 due to the U.S. financial crisis and the decline of the automobile industry, but later cleared all of its debts in 2014, escaped bankruptcy, and recovered its pre-bankrupt GDP as of 2021.
Area: 370.03 km2
Population: 670,000 (2020)
Key institutions: -
Key industries: automobiles (GM, Stallantise major benefits: next tax break for up to 12 years for eligible businesses, Ford), automotive parts
Note: It is the largest city in Michigan and is located in North America's Big 3 OEM (GM, STELLANTIS (formerly FCA, FORD), and has a number of global auto parts companies (61 of the top 100 auto parts companies in North America are located in Michigan).
Detroit has a population of about 670,000, including the metropolitan area of 4.32 million (as of 2018)
Area: 95.00 km2
Population: 1127,000 / Metro area 460,000 (2020)
Major institutions: Michigan
Major industries: education (Michigan State University, West Michigan University), government agencies, insurance (4 companies), healthcare, automobile manufacturing (GM Lansing Plant)
Remark: Detroit, Grand Rapids, Metropolitan Area, South Central Mid-Michigan City, Michigan.
Two medical schools, one technical college, two nursing schools, and two law schools located at the university of West Michigan and Michigan State University.
It is the state capital, and includes the state Supreme Court, the appeals court, the federal court, the library of Michigan, and the history museum, which accounts for more than 25% of employment.
From the past, it has been famous as the headquarters of GM's Buick, Oldsmobile, and Cadillac development teams.
Current location of office and high-tech facilities in GM Lansing
Area: 74.33 km2
Population: 123,000 (2020)
Key institutions: -
Major Industries: University of Michigan, Hi-Tech Startup
Note: The University of Michigan is located about an hour away from Detroit, and industries such as high-tech startups (medical, autonomous driving, and connected cars) are developed based on the geographical characteristics close to Detroit and the university's research facilities.
Area: 117.25 km2
Population: 205,000 (2020)
Key institutions: -
Major industries: furniture (American Seating, Steelcase, etc.), defense industry (GE Aviation System, etc.)
Note: It is an industrial city in the west of Michigan, and its representative industry is furniture manufacturing.
The urban population is 200,000 and 1 million including the metropolitan population.
Area: 66,455.52 sq. mi.
Population: 7,785,786 (as of 2022)
Provincial capital: Olympia
Major institutions: Washington State Government Building
Major industries: high-tech industries such as service industry, information and communication industry, aviation and space industry, electronic medical devices and microchips
Note: High-tech industries such as information and communication, aerospace, computers, electronic medical devices, and microchips account for an important portion of Washington State, which contributes significantly to Washington's economic growth along with rapid growth.
Many of the Fortune 500 companies, including Amazon, Costco, Microsoft, and Starbucks, are headquartered in Washington.
Washington's exports rank third in the United States, and are very important in corporate value, sales, and job creation thanks to the rapid growth of the ICT sector.
Washington State Department also plays an important role in the development of renewable energy policies to encourage and foster the clean energy industry through the Office of Economic Development and Competitiveness and the State Energy Office.
Washington's largest industry is the service industry, accounting for roughly four-fifths of Washington's employment and GRDP and has excellent labor resources that can be reasonable.
In Washington, more than 91.3% of all residents graduate from high school (83% nationwide), and 36% hold bachelor's or higher degrees.
Washington State has 27 private universities, colleges, and 34 community and technology colleges with integrated workforce education programs focused mostly on aerospace, agricultural/food manufacturing, and cleanliness, which are high-growth industries in Washington.
In addition, through the program, Washington State has achieved a lot in technology, forest products, life sciences/global health, marine and information and communication technologies.
A corporation in the United States operates under the jurisdiction and associated regulations of the state.
Typically, it is overseen by either the Department of State or the Department of the Treasury.
If you intend to conduct stable business operations in the United States, opting for a subsidiary-type business structure is often the most suitable approach.
This allows you to navigate trade barriers effectively, leverage local production resources and technical knowledge, and benefit from financial and tax advantages.
To establish a local corporation in the United States, you must have at least one founder, who can be a foreign national and is not required to be a resident of the state where the corporation is to be established.
However, a registered agent, residing within the relevant founding state's jurisdiction, must be appointed.
There is generally no specific capital requirement for corporations in industries other than the financial sector.
Still, if shares are issued based on capital, the chairman of the board of directors has a responsibility to the shareholders.
The process of establishing a company typically involves checking the availability of the chosen company name, registering the corporation, and applying for a business license or permit in accordance with the regulations of the local government.
Additionally, registration with the Employment Development Department is necessary.
To operate as a foreign corporation in the United States, you must submit the required documents in the state where you plan to conduct business activities.
Keep in mind that the necessary documents and procedures may vary from state to state, so it's essential to verify the specific requirements of the state in question.
In most U.S. corporations, funds transferred from their overseas headquarters are treated as loans or investments rather than general expenses.
This distinction arises from the fact that a U.S. corporation is not merely a branch of the headquarters but functions as an independent entity separate from the parent company located in another country.
In the case of loans, interest payments on the loans must be made to the headquarters, while in the case of investments, profits are distributed accordingly.
When a U.S. corporation seeks a local loan, it may be possible if the overseas headquarters guarantees repayment of the principal.
U.S. banks typically require documentation and various forms of evidence to establish the relationship between the U.S. corporation and the foreign headquarters.
It's also crucial to consider the implications of potential withdrawal from business operations.
If a U.S. corporation accrues significant debt due to poor business performance in the U.S., all liabilities can be written off upon the corporation's liquidation.
However, for foreign companies, the foreign headquarters is required to cover 100% of the debt.
This scenario doesn't solely pertain to financial liabilities; even in the case of leasing office space, the full rent for the remaining rental period must be paid if withdrawn before the lease expires.
U.S. corporations often have more flexibility in terms of rent payments upon corporate liquidation, while foreign companies are obligated to cover all rental costs.
Consequently, when entering the U.S. market, it's advisable to consult with accountants and lawyers in advance to establish a corporate structure that can effectively address potential challenges that may arise during business operations, especially during the withdrawal process.
To provide a brief overview, the following sections outline how to establish a corporation in New York State, New Jersey, and Georgia:
Guidelines on the selection of New York State corporate names are well described on the New York State Government website.
In addition, before selecting a corporate name, you should first check whether the corporate name you are using exists.
Information on corporate name selection: https://www.dos.ny.gov/corps/faq_availability.page.asp
Website : https://www.dos.ny.gov/corps/bus_entity_search.html
After the name of the corporation is determined, the basic establishment process can be completed by submitting the Certificate of Incorporation (Articles of Organization for LLC) and related information to the New York Department of State Online-Filing System.
New York State Online Corporation filing system: https://appext20.dos.ny.gov/ecorp_public/f?p=2201%3A17
Information on the establishment of New York State: https://dos.ny.gov/form-corporation-or-business
Information Guide to the Establishment of New York State,
A checklist required to establish a New York State corporation and regulatory/license information applicable to the business:
https://www.businessexpress.ny.gov/app/bw/startnewbusiness
New Jersey must also first check whether there is a corporate name to be used before selecting the corporate name and then make a final decision on the corporate name.
Information on corporate name selection: https://www.nj.gov/treasury/revenue/checkbusiness.shtml
After that, when the corporate name is decided, you can visit the New Jersey's Online Business Formation and proceed with the online corporate establishment process.
Online Business Establishment Site: https://www.njportal.com/DOR/BusinessFormation/Home/Welcome
Likewise, Georgia must first check whether the corporate name to be used exists before selecting the corporate name and then make a final decision on the corporate name.
After that, when the corporate name is determined, the online corporate establishment process can be carried out at Georgia's Online Business Services.
Online Business Establishment Site: https://sos.ga.gov/how-to-guide/how-guide-register-domestic-entity
On the other hand, when entering overseas markets, after establishing a corporation and office, it is necessary to report it to the competent Consulate General in the area where he/she resides and register as an overseas national.
A branch office is a foreign company established under foreign law as a place of business when it intends to conduct business activities in a foreign country.
From the perspective of the United States, a branch represents a foreign company operating within its borders.
There are few specific laws or regulations governing the establishment of a branch office, and the requirements for establishment primarily involve the "Filing of Authorization" with the state government where the workplace is located to comply with local ordinances.
A specific company's branch is considered a subsidiary of the parent company, and it does not require any dedicated capital.
Due to these characteristics, the parent company assumes all legal responsibilities for the branch.
While the branch is not subjected to a comprehensive corporate audit, it is obligated to maintain relevant data to clarify its income.
In the case of branches in the U.S., tax reporting, accounting audits, and corporate law requirements are not as extensive as those for subsidiaries.
Moreover, even if there is a deficit, funds can be transferred to the headquarters.
Documents required for the establishment of a branch include:
State Certificate of Authority
US IRS Tax Number (EIN)
By-laws
When expanding into international markets, it is essential to report the establishment of a corporation and office to the competent Consulate General in the area where it is located and register as an overseas national.
In the United States, there is no legally recognized form of investment entry in the shape of a liaison office.
If the establishment of an office serving as a liaison office is required in the United States, it is essential to consult with legal and accounting experts to select an appropriate investment method before proceeding.
In general, a liaison office is essentially a business office established by a non-profit organization, including religious organizations.
Its primary purpose is to engage in auxiliary and preliminary activities such as liaison work and the collection of market research information and R&D.
Consequently, the liaison office cannot engage in core business activities, and all decisions and transactions related to business are conducted at the organization's headquarters.
A liaison office is typically set up in preparation for entering a branch or subsidiary or if permission to establish such entities has not been granted.
Depending on the nature of the business, especially when it involves a relatively small number of transactions, the liaison office may carry out activities like market research, information analysis, and maintaining lines of communication with clients.
Ultimately, the headquarters may utilize the liaison office's findings.
However, it's important to note that if the liaison office is deemed a permanent establishment in the United States, the entire volume of transactions conducted by the headquarters may be subject to U.S. taxation, similar to operating within the United States.
Therefore, caution is advised in such cases.
A Co., Ltd. is the most widely used form of business organization in the United States, regardless of size.
The formation and operation of a stock company are determined by state legislation.
The existence of a corporation begins with the registration of the articles of incorporation.
The articles contain the company's name, detailed information on authorized capital, and other necessary confirmation information.
The business and operations of a corporation are overseen by the board of directors, and the directors are elected by the shareholders of the corporation.
The board of directors, in turn, elects the company's executives, who supervise the day-to-day operations of the business.
Common stock represents basic shareholder rights in a stock company.
When a company is established, a Certificate of Incorporation must be registered with the Division of Corporations controlled by each state.
The company's name should not be identical to that of an existing company or create confusion with an existing entity.
The company name must include 'Corporation,' 'Incorporated,' or 'Co. Ltd. (Company Limited)' to indicate that it is a corporation. Additionally, the registration should include the company's name, the purpose of its establishment, the office address, the duration, the total number and types of shares to be issued, the registered agent's name and address (if applicable), and the Secretary of State as an agent for delivering legal documents to the company.
At the time of establishment, fees for the registration process and taxes for incorporating the company must be paid.
Company bylaws should be enacted, and minutes of the initial shareholder's meeting and board of directors' meetings should be recorded.
While corporations are subject to more government regulations than other types of companies, they are the most suitable form of organization for both large companies and small businesses seeking simple management.
During registration, it is not necessary to disclose or register the identities of shareholders.
One shareholder can own 100% of the stock, or one person can hold all executive positions in the company.
At the time of establishment, the company can be formed with a payment of $1 per share for 100 issued shares.
However, regulations regarding capital payments also vary from state to state.
For instance, in New York State, a corporation can be established as "No Par Value," meaning there is no fixed price per share, and thus, no capital is required to register with the state government.
The person in charge of company operations does not need to be a permanent resident of the United States; they may operate the company from outside the United States.
However, a registered office must be established in the United States, and a registered agent must be designated, who must be a resident of the state where the office is located.
Determining the initial stock structure is crucial because it governs internal matters within the company.
Internal matters encompass the relationships between shareholders and executives, shareholders and directors, shareholders, and company creditors, and among shareholders.
For example, shareholder voting rights, dividend distribution, and access to company records are regulated according to corporate law.
In New York State, the Business Corporation Law governs these matters.
However, a general corporation has certain disadvantages.
One significant issue is double taxation (taxation on both corporations and shareholders), which can be burdensome for business owners.
An S Corporation offers a solution by providing some of the advantages of a corporation while addressing this problem.
To establish an S Corp, you must complete and submit IRS Form 2553 to the Internal Revenue Service (IRS) within approximately 75 days (by the 15th day of the third month after establishment) from the company's creation or the start of the accounting period.
Form 2553 can be downloaded from the following link: IRS Form 2553
When deciding which state to establish the company in, the founder should consider not only the state's tax laws but also environmental regulations and pollution prevention laws imposed on companies operating in the state.
If a company established outside of New York State intends to operate within New York State, it must submit an application and obtain a Certificate of Authorization to operate in New York State.
Upon obtaining this qualification, the company becomes subject to New York State regulations and can be sued in New York State courts.
Limited Liability Company (LLC), hereinafter referred to as LLC, is a non-corporate business organization that essentially combines the characteristics of a Corporation and a Partnership.
It is a form of company that blends the favorable aspects of federal tax law applicable to partnerships with the limited liability benefits enjoyed by shareholders of a corporation.
An LLC is recognized as a unique type of corporation that harnesses the advantages of both Corporation S and Corporation C. Corporation C faces double taxation, affecting both shareholders and the corporation, while Corporation S functions as a single-taxed entity, much like a partnership.
In contrast to a partnership, where there must be at least one unlimited liability partner to bear personal responsibility for the company's debt, all investors in an LLC have limited liability, i.e., liability confined to the scope of their investment.
Additionally, unlike corporations, limited liability companies are not obliged to maintain formalities such as annual board of directors' meetings and shareholders' meetings.
They are favored by small-capital companies due to the autonomy they grant to members.
The names of limited liability companies must include abbreviations such as "Limited Liability Company" or "LLC," "L.L.C.," etc. The company's articles of organization should contain similar requirements as those required by a corporation's Certificate of Incorporation.
This includes designating the company name and New York State as an agent for receiving legal documents.
The articles of organization should also specify whether the LLC is managed by a single person, multiple people, one manager, or several managers simultaneously.
Furthermore, if a specific member is responsible for a particular company debt, this should be detailed in the articles of organization.
Within 120 days of the articles of organization taking effect, advertisements must be published in two newspapers for six consecutive weeks, once a week.
This process is akin to that of partnerships.
LLC members must establish written management agreements.
These agreements outline matters related to general business, as well as the rights, authority, responsibilities, and restrictions of members and managers.
LLC may be dissolved with written consent or a vote of not less than two-thirds of the members' holdings.
Moreover, an LLC dissolves when a specific member experiences bankruptcy, death, dissolution, forced withdrawal, voluntary withdrawal, or incompetency (declaration of limited or incompetent) as stipulated in the management agreement.
However, LLC can continue if a majority of the remaining members' shares vote for or approve it in writing within 180 days of the grounds for dissolution occurring.
Additionally, even if there is a reason for dissolution, if the management agreement provides for the authority to continue LLC, it can proceed accordingly.
LLC may merge with other LLCs or with corporations from other states or foreign entities.
While LLC offers numerous advantages, converting an existing company into an LLC when operating under a different structure requires caution.
This is because tax issues arise when assets are transferred from other types of companies to an LLC.
In such cases, consulting a tax law expert is essential.
Furthermore, given that there aren't many precedents for LLC yet, consulting with lawyers specializing in corporate-related laws in advance is advisable, especially considering that the laws governing the dissolution of LLCs vary by state.
For instance, California has different regulations for LLCs at the state level, such as restrictions on dissolving them at will and requiring a mandatory maintenance period after application.
Additionally, if a single person establishes an LLC, there is no legal separation between the owner and the company.
In other words, limited liability protection is not applied (it becomes a disregarded entity), and the owner remains liable indefinitely.
This means that in the case of a single-member-owned LLC, the profits of the LLC are 100% owned by one person, and consequently, in single-member LLCs, unlimited liability rather than limited liability applies.
While this may vary by state, New York State treats it as a single entity upon establishment, with each reporting taxes individually.
However, all such entities are jointly liable for unlimited debts incurred by the LLC.
A private company (also known as a private business) is the simplest form and the most common way of managing a company.
An individual who trades in his or her name may run a company in his or her name without incurring any formal procedures or costs for the organization.
However, if an individual entrepreneur intends to operate in a fictional or other person's name, not in an individual's name, the company's trade name must be registered with the Clerk of the county government, a local administrative unit in the United States.
The business certificate must include the business name, address, and name and address of the individual.
* In New York State, individuals are prohibited from using names such as 'and company' or '&Co.'
When an owner of a private company intends to open a bank account in the form of a fake name or in the name of another person, he/she must submit a certified copy of a business certificate recognized by the authorities to the bank.
In addition, the certificate of trade should be posted in a prominent manner at the place of business.
The business owner enjoys all the corporate profits but has unlimited liability for all of his actions and all actions performed by his employees within the scope of employment of employment.
At the time of the death or retirement of the owner, the existence of the private company is suspended.
The income of a private company must be reported in the personal tax return 'Schedule C'. And at this time, all expenses related to business management are deducted from total income.
Losses are offset from the individual's other income and deducted from the individual's total tax obligation.
Private companies have the advantage of being easy to establish and low cost of establishment in the early stages of establishment, but there is a risk that individuals are exposed to unlimited responsibility.
If you choose this type of company, you need to subscribe to liability insurance to protect other assets of individual owners from claims for damages.
There are three types of partnerships:
General Partnership: Comprising only General Partners who bear unlimited responsibility for the company's liabilities.
Limited Partnership: Comprising one or more General Partners and Limited Partners with limited liability for corporate debt.
A general partnership is a contractual arrangement where two or more individuals or corporations (including other partnerships, corporations, LLCs, etc.) jointly operate and manage a general business.
They share the profits and losses of the business.
Some partners may contribute by investing in trademarks, copyrights, technologies, services, or real estate.
Partnerships are established through verbal or written agreements.
While verbal agreements may be recognized, they are challenging to prove in court, so it's advisable to have a written contract between partners.
The liability limit for each partner's debt varies depending on the type of company, with varying degrees of influence on management.
General Partners jointly operate partnerships with similar powers and responsibilities.
Each partner may invest capital, services, or both.
In New York State, registration is required in each county where the partnership operates, including the names, addresses, and names and addresses of each partner.
Changes in partnership membership or address require the registration of an updated certificate.
Failure to fulfill these registration obligations constitutes a misdemeanor.
Each partner has a defined level of authority in management and corporate governance.
Important decisions, such as adding new members or amending existing partnership agreements, require unanimous consent from decision-making members.
Routine business activities are decided by a simple majority vote.
These rules can be modified by agreement among the partners.
Each partner has either unlimited or limited personal liability for the partnership's debts.
This means that, in addition to their invested capital, personal assets held by partners are considered assets for debt repayment.
Partners may also be jointly and severally liable for illegal activities committed by other partners, employees, or agents within the scope of partnership operations.
Joint liability implies that if there are three partners—A, B, and C—the creditor may claim the entire bond from A.
If A lacks assets, the claim can extend to B or C, or they can be jointly responsible for 1/3 of the total debt.
This joint liability can be significant.
Since partnerships are not taxable entities but rather Pass Through Entities, partnership income is attributed to each partner's income.
The partnership itself does not pay federal income tax.
Instead, the partnership submits Form 1065 (U.S. Return of Partnership Income), which is an Information Report.
This report details the partnership's demonstrated proceeds.
Each partner can calculate their share of partnership revenue when reporting their income tax.
Losses in partnerships, including other income, can be deducted.
Profits are typically distributed equally unless the partnership agreement specifies otherwise, and losses are distributed in the same manner.
However, these regulations can be altered by contract.
If the partnership agreement does not outline profit and loss distribution, even if some partners have invested more capital and services than others, profits and losses should be distributed equally.
Therefore, a clear partnership agreement is essential for determining gains and losses distribution.
Partnerships do not have a permanent existence like private companies.
They legally dissolve upon the death, bankruptcy, or withdrawal of any partner, followed by the process of liquidation and partnership termination.
The court may dissolve the partnership at the request of one or more partners or interested parties for various reasons, such as if partners are deemed incompetent or unable to fulfill their obligations under the partnership agreement.
Running a partnership without a well-defined written agreement outlining the operation of the business is not advisable.
Typically, professionals such as lawyers, accountants, doctors, and nurses operate partnership-type businesses.
General partnerships should be avoided unless specific circumstances, such as tax considerations (e.g., joint ownership of real estate), require them.
If you must form a partnership for special circumstances, it is recommended to opt for a limited liability company.
A joint venture is a company organization comprising one or more individuals, including a General Partner and a Limited Partner.
The unlimited liability investor bears unrestricted responsibility for the company's business debts and wields overall authority over management.
In contrast, the limited liability investor isn't personally liable for the company's debts (though they lack management authority within the assets pledged for investment).
Limited liability investors may not participate in the company's management or include their names in the company's name.
Establishment Procedures (in New York)
The Certificate of Limited Partnership is registered with the New York State Department of State.
A joint venture is established by registering with the Department of State, and if the establishment date falls after the registration of the certificate (within 60 days of registration), it is recognized as established on that date.
After certificate registration, the certificate of the joint venture must be advertised once a week for six consecutive weeks in two newspapers designated by the county.
Proof of the advertised information must be obtained within 120 days of certificate registration.
Under the Limited Partnership Act, partnership contracts defining the basic relationship between partners are required to be established, and these contracts must be signed by all unlimited liability investors.
However, the signature of the limited liability investor is not mandatory.
A joint venture structure can be a useful approach for various corporate management scenarios, especially when investors have differing levels of investment in a company.
However, when establishing a joint venture, careful attention is required to meet all legal requirements.
Joint ventures failing to meet these requirements may be categorized and taxed by the U.S. Internal Revenue Service (IRS) as non-corporate entities (unincorporated associations or organizations).
Additionally, a limited liability investor may become personally responsible for the company's creditors.
If there is a single unlimited liability investor, a net investment equivalent to 15% of the company's total investment must be provided; otherwise, it may be subject to review by the National Tax Service.
This business form is tailored for professionals. An LLP is established by registering it with the state government as a general partnership composed of professionals. The company name should include R.L.L.P., PLLP, L.L.P., or LLP. Partners are not personally liable for the LLP's debts.
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