How to Start a New Business in USA: Important Tips

• Planning to start your own business
• Looking for some good business ideas
• Want to know how you can get funding for your Startup

We will show you how you can start your own business in USA if you have any business idea. What are the legalities and the funding options for your business?

Starting a New Business in the USA

First of all you need to decide on which business would be right for you. You do a survey around your region and see what is high on demand now. Make sure that you have understood the business that you are choosing, and it suits your business goals. If you are not sure which business type will suit your plan you can get in touch with The Brand Global Team by writing at connect@thebrandglobal.com. One of our team members will assist you in finalizing your plans. It is better to take advice from the experts when you are a novice in any field.

What Type of Company you are looking for

Once you have the business plan ready then you need to decide which type of company you would like to start. In USA you have many options with you. Some of the popular choices are:

LLC - Limited Liability Corporation

LLC is the most common business type in the USA. The US laws protects your assets in case you face business debts and lawsuits. No big hassles as far as taxation structure are concerned. If you expect that revenue of your business will be small then you can go for LLC. Both residents and non-residents can start an LLC.

C-Corporation

If you are a non-resident and want to start your Business in USA then C-Corporation is recommended for you. Moreover if you want investors to fund your venture and you wish to have shares of your company then you can start a C-Corporation. If you are US residents then you can go for S-Corporation

S-Corporation

With S-Corporation you will have certain advantages as it is only meant for US Residents. Here you are exempt from double taxation. If you think you will make a good revenue then this is the best choice for you as you can save more taxes

Sole Proprietorship

In a Sole Proprietorship, no formal filings are required and it is simplest of all the forms of businesses. However the disadvantage is that in a sole proprietorship, you will have to take personal liability for all business matters. Your business assets and liabilities are not separate from your personal assets and liabilities. If you face debt situation or a loss then you have to compensate that with your personal assets.

Financing your Business

In the USA there are numerous government backed loans and funding programmes for your business. There are government guaranteed loans, financial assistance and grants to start your business.

Some of the options are:

Small Busines Loans – There are many types of loans that you can apply for starting your company or business in USA.

Government Funding Options - There are funding programmes like Small Business Investment Company Programme, Small Business Innovation Research Programme etc. for funding of new Businesses.

Look for the genuine crowd funding sites where you can request to raise funds for your start-up project.

Laws & Tax Requirements for your Business

When you are in a business it is very important that your business is complying with federal, state, and local tax laws.

You need to ensure that all the federal tax requirements for starting a business are met. For more details you can get the information from this official link of US Government

checklist from the IRS.

Apart from complying with all the US laws you also need to ensure that you also follow the consumer protection laws marketing. While hiring the employees for your business keep in mind that here also you need to comply with federal and state regulations.

You can hire only those Foreigners who have permission from the Government to work in USA. It is better to register your company with online E-Verify system. Here is the link where you can register

https://www.e-verify.gov/


Above all you need to secure your new Business by taking a right insurance coverage

Investment by Venture Capital in African Startups

African startups are on an upward fundraising trend in 2020 and global investors are taking note of it. Last year the amount of venture capital channelled into African opportunities surpassed the $725.6M raised in 2018 by nearly $500M.

Global Investors in African Startups

There were over ninety African companies that raised over a million dollars each in 2019, with Nigerian companies attracting the lion’s share of over $650 million.

As these African start-ups mature, traditional players such as Goldman Sachs are investing, and large corporate venture arms and sovereign wealth funds are also beginning to circle. Twiga Foods, a Kenya-based food logistics startup, closed a $23.7 million Series B round led by Goldman Sachs, while Goldman also led a $20 million Series A funding round for Nigeria-based freight logistics company Kobo360. Both investments plan to support pan-African expansion.

The entrance of established players signals the growing maturity of Africa’s startup ecosystem as African companies are not only attracting global capital but require the sizable investments these investors desire.

As it did in India, Corporate venture capital (CVC) is also playing a key role in supporting the emerging startup ecosystem in African countries. There is a difference between a traditional VC or PE firm and a Corporate Venture Capital (CVC). The startups have an advantage from CVC funding. Because Unlike conventional VCs, Corporate venture capital gives more time to repay. As a result, the startups get more time to scale post-investment.

One of the bigger names in CVC, Visa has announced that it will buy a 20% stake in Nigerian firm Interswitch for $200 million.

GV also know as Google ventures and Toyota’s venture arm is also planning to invest African companies. Yamaha has shown interest in Nigerian motorcycle transit startup MAX.ng.

Furthermore the big corporate like Mastercard and Shell are also investing in African startups.

Asian Investments in African Startups

2019 also saw Asian entities entering into the African Startup ecosystem. Softbank one of the most prominent players in Asia participated in a $1.25 billion round of fundraising for Airtel-Africa. The telecom company Airtel-Africa is a subsidiary of Airtel India.

Opay, a mobile payments startup in Africa, owned by Chinese investor also raised $50 million in a Series A round from investors including Sequoia China.

Mobile phone device creator, Transsion, which operates in Africa and is owned by China, partnered with Kenya’s Wapi Capital to fund early-stage African fintech startups.

Apart from CVC and VCs, some sovereign wealth funds are also keen on investing in the African market. Abu Dhabi’s state fund is planning to invest $250 million through two funds focused on technology start-ups in the Middle East and North Africa.

Moreover, Qatar Investment Authority has also invested $200 million in the Airtel India subsidiary, Airtel-Africa

The African market has already seen a huge jump in fundraising from the established players giving a very positive sign for African. Jack Ma of Alibaba and Jack Dorsey of Twitter have recently visited the African countries. This has created a buzz among the African ecosystem as they are anticipating more investments in the coming years.


Africa is expecting more and more global investors and bigger players to invest in their companies. The ecosystem is expecting that the negative narrative that African companies are too risky for mainstream venture capital is changing now.