Many ambitious entrepreneurs around the world are drawn to explore business opportunities abroad. The United States, with its dynamic financial market is a prime choice for many ventures. However, for those getting started, doing business internationally can feel overwhelming.
Complex procedures and lots of legal terminology . These challenges might make expanding into the US seem difficult and out of reach. But fear not, because Syndicately is here to help! The team at Syndicately is here to guide you so your path to doing business in the United States is much simpler.
Understanding the Obstacles
The major stumbling block involves the strict regulatory environment. For a business to function in the US market, it must possess a taxpayer ID. For US citizens, this is usually a Social Security Number (SSN) or Employer Identification Number (EIN). However, being a non-US citizen, you may not qualify for an SSN or EIN, creating what appears to be an insurmountable challenge.
Step 1: Securing an Individual Taxpayer Identification Number (ITIN)
For those that do not qualify for a SSN, there is an alternative solution available. You can apply for an Individual Taxpayer Identification Number (ITIN) from the IRS, which is the US tax authority. The ITIN is a nine-digit number provided to individuals who need a US taxpayer identification number but are not eligible for an SSN or EIN.
To obtain an ITIN, you will need to complete a form called the W-7. This form is specifically designed for individuals like you who require a taxpayer ID for US tax purposes but cannot obtain an SSN. It’s important to note that there is no cost to apply for an ITIN, ensuring that finances are not a barrier to this crucial first step.
Once you have filled out the W-7 form, you will need to mail it to the following address:
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
Alternatively, you can apply in-person through an IRS-authorized Certifying Acceptance Agent. This option can expedite the process and provide a more direct route to obtaining your ITIN.
To find a list of IRS-authorized Certifying Acceptance Agents in your country, you can visit this link:
Please keep in mind that it takes approximately 7 to 11 weeks for the IRS to process and issue an ITIN.
By obtaining your ITIN, you successfully overcome the first major obstacle on your path to US investment. Now, let’s move on to the next step: establishing your business entity in Delaware.
Step 2: Establish a Management Entity
The next hurdle involves creating a footprint in the US. To accomplish this, you will set up a management entity in Delaware. This entity will oversee a Special Purpose Vehicle (SPV), which is a legal entity designed for use in a specific transaction. SPVs provide some additional risk insulation.
Many of our clients choose to establish their SPV entity in the state of Delaware. The state laws in Delaware are very entrepreneur-friendly and it has become a preferred choice for many major US companies. Moreover, forming an entity there is an easy process that can be completed online. One possible resource for this is the Delaware Registered Agent Service: (https://www.delawareregisteredagentservice.com/)
Once your Delaware LLC is created, your next step is to engage Syndicately to set up your SPV portal.
Step 3: Sign Up for a Syndicately Manager Account and Provide Necessary Documentation
There are certain prerequisites when setting up your Syndicately manager account. We need a copy of your valid passport, the passport ID, and details about your local jurisdiction. Thse documents are critical for compliance with global regulatory standards. They also add an extra layer of security to your Syndicately account.
After successfully registering and once your Delaware entity is ready for action, you’re set to launch an SPV on Syndicately.
Syndicately’s works as a deal execution platform and syndication management tool. Syndicately’s platform simplifies the entire investment journey for international clients.
Step 4: Embark on Your Investment Journey with an SPV on Syndicately
Creating your first Special Purpose Vehicle (SPV) on Syndicately is a critical milestone on your journey to US investment. An SPV serves as a powerful tool. It works to mitigate risk and attract investors by providing a separate legal entity dedicated to the investment.
One major advantage of Syndicately is its legal and regulatory focused framework. The system is designed ensure your SPV and investments are compliant. We have a dedicated team of specialists that work to update the platform in line with the latest changes in investment regulations. This oversight allows you to remain compliant and reduces the risk of legal complications.
Navigating the Future
Managing investments in the United States market can appear challenging, but with the right tools, it can be done easily. Syndicately is more than just a platform; it is a partner in your investment journey. Our mission is to provide the guidance and tools you need to grow your portfolio and reach your goals. Syndicately isn’t just a service; it’s your launchpad to success within the US market. Come on board, and let’s collaborate to break down any barriers in your path.