News Americas, NEW YORK, NY, Fri. April 21, 2023: The U.S. economic relations with the Caribbean basin remain strong thanks to the Caribbean Basin Initiative (CBI), helping stable Caribbean Basin economies by providing duty-free access to the U.S. market. According to the U.S. Embassy in the region, bilateral investment and trade with Barbados total $1.6 trillion annually, making it one of the most significant global trade relations.
A report from the Economic Commission for Latin America and the Caribbean on trade developments in the area shows the largest imports to the U.S from the Caribbean are minerals, metals, and by-products, making up 92% of their imports.
The CBI was launched in 1983 with the Caribbean Basin Economic Recovery Act (CBERA). It expanded in 2000 through the U.S. Caribbean Basin Trade Partnership Act (CBTPA) and the Trade Act of 2002. CBERA has no set expiration date, but the CBTPA will expire in 2030.
Job-creating business developments are encouraged in the U.S. through the SelectUSA government program. The program has helped create and retain 166,000 U.S. jobs so far, facilitating over $146 billion in investments.
The United States remains the largest trading partner in the Caribbean, and any foreign corporation can opt to do business in the U.S. However, even though a foreign company can establish a branch within the U.S., most prefer to form subsidiary companies for tax reasons.
Furthermore, corporations in the U.S. are formed at the state level and must meet the specific corporate law requirements of the state in which they are incorporated. For example, Delaware and Nevada are two popular states for companies because of their business-friendly corporate laws. If a company incorporates there but sells its products in other states, it is subject to each state’s tax laws and must file tax returns in every state.
Caribbean companies can also form LLCs and partnerships in the U.S., both appealing options because they have more favorable taxations.
The U.S. has very affordable business registration and renewal fees compared to most countries. Changing a company structure according to business growth is also straightforward.
The paperwork required to register a company in any 52 states is minimal compared to most other counties. However, your company will require an operating agreement and a tax number called an Employer Identification Number (EIN). Businesses also have a few annual compliance requirements that differ according to the company structure.
Additionally, American businesses garner trust thanks to the county’s business-friendly reputation and ethics.
Any company in the U.S., even from the Caribbean, must open a business banking account. Some of the most popular are business checking, business saving, and money market accounts.
With a massive rate of banking products and several banking options, companies operating in the U.S. can also leverage the benefits of faster payment processing.
Even though traditional banks still require the business owner’s presence to open a business checking account, with online banks, the process involves submitting the paperwork online (the company’s certificate of formation, its EIN, physical address, article of organization, and your personal details).
Even though an EIN is not necessary for simpler business entities like sole proprietorships, if you have an LLC, partnership, or corporation in the U.S. will need one. This nine-digit number is issued by the Internal Revenue Service and is your business’s unique identifier number for tax and other purposes. With this number, your business appears more legitimate to vendors. It also makes applying for a business loan and business credit card easier.
Finally, another crucial purpose of a business banking account is to separate your business income from your personal income. In the U.S., as in many other countries, this provides personal liability protection and makes it easier to file taxes.
It is effortless for Caribbean companies to do business in the U.S. thanks to their excellent trade relations and several agreements. The U.S. is also known for its business-friendly environment and huge consumer market. Whatever your industry, the requirements for doing business in the U.S are easy to achieve. Choose your state, organize your business registration, create its operating agreement, apply for an EIN, and open a business checking account and you are ready to trade.