Since the inception of the United States, the economy has been developing there thanks to its diverse business.

Organizational and Legal Forms of Enterprises in the USA

  In the United States, businesses can be of several types:

• individual private enterprise (Sole proprietorship);
• general Partnership;
• corporation
• limited Partnership

  Each type of enterprise has its own structure, size, field of activity and legal status.

US business regulation is entrusted with corporate law, which has a two-level structure. This means that regulation takes place at the state and federal levels. This statement of the question is due to the political structure of the United States.

Let's consider in more detail each form of business organization in the USA.

Sole proprietorship

  An individual-private (sole) enterprise is created by the will of an individual under his full responsibility.

Here, for a better understanding, we can draw some parallel with Russia, for this view is also:

• elected solely for small business;
• operates in retail and wholesale trade or the service sector;
• has financial limitations;
• some activities require a license.

  Differences from Russia are as follows:

• financial records are not required;
• tax return is the only official document;
• the costs of an individual entrepreneur can be taken into account in taxation almost completely, including many personal ones.

General partnership

  General partnership operates on the basis of the Partnership Act (Uniform Partnership Act adopted in 1914 in 44 states) and agreements between participants (partners).

Key features of a common partnership:

• partners have equal rights to property and to the management of business processes;
• upon creation, a new legal entity is not formed;
• has the status of an independent business enterprise;
• partners bear unlimited joint and several liability for obligations;
• ceases to exist upon the exit of one of the partners or the entry of a new one, since registration of a new partnership is required, and business activity is not interrupted;
• does not pay taxes, but declarations are submitted to the tax service (partners pay taxes according to the share of their participation in profit and loss).

Limited partnership

  A limited partnership has a key feature. It consists of partners with full and limited liability. Limited liability is also understood as in Russia, that is, a partner bears it only within the limits of his contribution to the business. His participation is limited only by contribution; he takes a passive position in business. An active role is played by unlimited partners. This form of business is convenient for cooperation of highly qualified specialists in the field of medicine, law, financial services.

Corporation

  The most common form of business in the United States is a corporation.

Her distinctive features:

• independence;
• liability for obligations within the property;
• double taxation (one amount is the income of the company and the income of shareholders);
• capital is formed through subscriptions to stocks.

  The formation and operation of corporations is determined by the laws of each state.

Under US law, a corporation can be of three types:

• Close Corporation (closed);
• General Corporation (open);
• S Corporation;
• Limited Liability Company (LLC).

Small business successfully operates in many industrialized countries, primarily due to its state support. In the United States, the leading government support agency for small businesses is the Small Business Administration (SBA), its regional and local branches. In addition, congressional committees for small business and numerous special bodies in ministries, departments and local governments participate in this.

SBA solves three critical tasks: providing financial support for small and medium enterprises; assistance in obtaining government orders; provision of technical and management consulting services.

The federal SBA apparatus numbers 1,100 people. In each of the 50 states, there are regional branches of 30–40 people each. SBA officials in the center and in the field do not run small businesses. Their task is to provide information on market conditions, the implementation of expert opinions for those who are just about to start their own business. One of the main objectives of the SBA is to provide financial support to small and medium-sized businesses.

According to SBA, about 1 million new firms are created annually in the country. Of these firms, 60% are employed at home with support from the US Department of Labor. About 21 million Americans (17% of all employed) work thanks to small businesses with part-time jobs.

In the management of small businesses involved more women weight. In just one year, the number of women-led firms increased by 29%; 1.4 million small businesses owned by women earned $ 2.8 billion in profit over the year. A certain development in small business has received a franchise form. Among women - owners of firms, 16% used this form; 60% of female businesses were home-based.

Special mention should be made about investments in small businesses. In US small business, 55% of innovation is supported by SBA sponsors. At the same time, large enterprises account for 26% of the funds allocated from the federal budget for research and development, while small enterprises account for only 11% of these funds. The US Congress has developed a special innovation development program for small businesses. Deductions for these programs increase by $ 1 billion annually.

Of the 4.5 million employees — scientists, engineers, analysts, and programmers — 37.9% are employed in small business.

I must say that the 1980s were marked in the United States by a sharp increase in individual and group innovative businesses. Small innovative production was organized on the basis of the work of scientists, engineers, and inventors. These are small innovative enterprises based on the production, development, commercialization of new scientific and technical ideas. According to various estimates, in the late 1980s and early 1990s in the high-tech sector of the US industry, there were from 30 thousand to 40 thousand companies with less than 100 employees. Today, of the 600-700 thousand new firms annually created in the United States, approximately an eighth part specializes in the production of scientific and technological innovations.

Numerous small innovative enterprises in the United States have become a kind of addition to the traditional research and development complexes of industrial corporations, universities, non-profit research organizations, state laboratories, and various target structures. Significantly losing to such organizations for resource support, small firms in the field of scientific and technological progress win in the possibility of maximum emancipation of creative potential and the initiative of scientific and technical workers.

The experience of the United States shows that in the conditions of resource insecurity of a small innovative business, the organization of a kind of support network becomes the most important factor in its existence:

• (1) financial (the availability of numerous available sources of risk capital);
• (2) material and technical (rental and purchase opportunities, including on preferential terms, means of production - buildings and structures, machinery, scientific equipment, vehicles, copy machines, etc.);
• (3) information (providing opportunities to use information networks and technical libraries, access to databases, etc.);
• (4) advisory (development of specialized consulting services. Focused on the organizers of small innovative enterprises on taxation, insurance, planning, marketing, reporting, patent filing).

The efforts of the federal government, states, local authorities, the public, universities, and private business are aimed at creating such a network today.

The policy of stimulating the innovative activity of small businesses is carried out at all levels of government - from the federal government to municipalities. The main thing in state policy in this area is the creation of a kind of innovative climate, i.e. providing favorable economic, legal, organizational, psychological and other conditions for the emergence and development of new firms, primarily those engaged in the generation, development and commercialization of scientific and technological innovations. The state, in contrast to the regulation of the economically and organizationally established large business, focuses its main efforts on the initial and even initial periods of the formation of small innovative enterprises.

(1) targeted subsidizing from the budget (through federal agencies and departments); and (2) attracting private capital to finance the innovative activities of small firms.

Targeted Budget Financing   It is carried out in the form of irrevocable subsidies through the provision of soft loans and the conclusion of contracts for the development of new products and technologies. In general, US small business receives 3.5-4% of total federal research and development costs. Up to a third of the spending of small firms on research and development in one form or another is financed by the state.

Irrevocable subsidy programs are mainly implemented by two federal agencies - the SBA and the National Science Foundation (NSF).

Concessional lending programs are implemented by SBA in the form of direct loans, equity participation in loans of commercial banks and guaranteeing loans of commercial banks. Direct loans are made by SBA from its own credit sources. The size of the loan does not exceed 150 thousand dollars, the maximum rate - 7%. Loans are provided for a period of: up to six years - for current needs; up to 20 years - for the purchase of equipment, land ownership and construction; up to 30 years - for the restoration of enterprises affected by natural disasters.

However, as American practice shows, forms of direct subsidies through government departments do not have sufficient flexibility and efficiency.

Attraction of private capital for financing   It is sold mainly through venture capital companies. Venture financing became more or less noticeable in the USA in the post-war period and spread widely in the late 1970s. Today in the USA there are three types of venture financing companies: corporate (subsidiaries of large corporations), independent and private innovative small business companies (ICMB), operating under the auspices of SBA. Venture capital is placed in the form of equity. This means that investors become shareholders of small innovative firms and, depending on their share of participation, are entitled to receive profits. The share of individual venture capital companies in small firms rarely exceeds 50%.

Tax and depreciation incentives provided to small innovative businesses are less widely applied, since initial and initial support is much more important for small firms. Therefore, tax breaks have traditionally been enjoyed more by larger businesses. However, in the early 1980s, more favorable taxation conditions began to be developed for small businesses, especially innovative ones, taking into account its specific needs.

In relation to small business, there is only one significant depreciation benefit: small firms are allowed to write off the cost of fixed capital in unequal parts or at a time during the depreciation period.

It is also of interest to finance small business in the United States. It is carried out mainly from two sources: through the Small Business Administration and through commercial banks. The largest share of loans is issued by the Small Business Administration.

According to SBA, commercial and industrial mortgage loans amounted to more than $ 1 billion. Total loans for small businesses for the year approached $ 1 trillion. Loans up to $ 250 thousand account for $ 188 billion, and loans up to 100 thousand. dollars - 112 billion dollars

Small Business Development in Japan Small business development in this country has its own specifics. Here, small and medium-sized firms are an important element of the economy along with large powerful corporations. About 7 million small and medium enterprises operate, employing over 40 million people. (approximately 80% of the total number of employees). Small and medium enterprises account for about 60% of industrial production. These enterprises occupy a dominant position in industries such as clothing, footwear, haberdashery, manufacturing of components and structures, construction, services (including maintenance of equipment), etc. Japan's small business is characterized by a well-developed subcontracting system, where small and small enterprises receive and fulfill orders from large firms - machine-building, aircraft manufacturing, automotive, etc.

There are four centers for regulating and stimulating small and medium enterprises: (1) the central government; (2) local authorities; (3) big business; (4) independent small business associations.

Through the central government, the Small Business Department is part of the Ministry of Foreign Trade and Industry. Both central and local governments stimulate the formation and development of small businesses through loans, credit guarantees, tax incentives, staff training and easier access to information. In addition, small businesses are provided with irrevocable financial assistance only for the implementation of scientific and technical programs:

• (1) increasing the technical level of production;
• (2) improving production technology in the food industry;
• (3) the development, together with universities and state research institutes, of new high-tech equipment.

The latter program is funded by local governments, the previous one by the central government, and the first by both.

Much wider, at a preferential interest, loans are provided for the implementation of the following projects:

• (1) development of new types of products and new technologies (funding from local authorities);
• (2) the development of new types of production and technology (through the central government);
• (3) the revival of small enterprises for the development of the economy of individual regions (through the central government);
• (4) promoting production and technical cooperation between small businesses (also through the central government).

A major role in providing financial assistance to small and medium enterprises is played by the Japan Small Business Finance Corporation. It provides on preferential terms to such enterprises long-term loans (for a period of more than a year) to increase fixed and working capital.

The National Finance Corporation of Japan specializes in lending to small and smallest companies. With a huge network of chambers of commerce and industry (over 500 in the country), it will annually issue loans worth nearly 500 billion yen.

In Japan, the network is another specialized institution - Soko-Chukin Bank, which finances the activities of cooperatives, small and medium enterprises, as well as their individual types.

Finally, to finance special priority programs in the field of structural adjustment of small and medium enterprises, environmental protection, and the development of energy-saving industries, the Small Business Finance Corporation and the National Finance Corporation issue loans on even more favorable terms.

The state provides guarantee and insurance of loans provided to small and medium-sized enterprises through the so-called System of additional public lending. With the help of this System, capital is transferred from commercial financial institutions to small and medium-sized businesses.

An important link in the financial support of small and medium-sized enterprises is loans and credits provided for specific assistance to enterprises in financial difficulties due to objective factors.

Thus, in Japan, comprehensive state support for small business at various levels has been created and is functioning.

Small business in Europe

In European countries, the interests of small businesses are usually represented by special departments or departments within the Ministry of Economy or the Ministry of Trade and Industry. So, in the UK under the Ministry of Commerce and Industry created the "Service of small firms." She assists small entrepreneurs in organizing their own businesses, obtaining loans, concluding contracts and contracts, training personnel and advising small enterprises. The service has local branches throughout the country.

Great Britain pays great attention to the training of small and medium-sized businesses. The most prestigious are university business schools in London, in Manchester, Glasgow, Duram and Warwick. In them, for 16 weeks, students learn the general problems of the economy and the basics of creating their own business.

The German government herd to provide broad support to small and medium-sized enterprises immediately after the Second World War. Already in 1948, a Credit Guarantee Bank was created in Germany to manage the funds received for the restoration of Europe under the so-called Marshall Plan. At the same time, regional credit corporations were created. Over the period of its existence, this system has provided small and medium-sized entrepreneurs with more than 100 thousand guarantees for a total of about 10 billion marks. Thanks to such powerful guarantees, commercial loans, leasing contracts and venture financing in the total amount of 14 billion marks were realized.

After the unification of the eastern and western lands of Germany to revive small business on the territory of the former GDR, the German government outlined and implemented a federal program to subsidize small and medium-sized companies in order to increase their share of their own funds.

It is interesting that since 1976 there has been a special provision in the Federal Republic of Germany that regulates the participation of small and medium-sized firms in fulfilling government orders. If small firms consider themselves circumvented in the division of such orders, then they can file a complaint with the appropriate authorities at the federal and local levels.

An important part of the program for assisting small and medium-sized entrepreneurs is personnel training, which is carried out through a system of chambers of commerce and industry, which regularly organize seminars for beginning entrepreneurs.

Introduction …………………………………………………………………………… 3

Small Business Development in the USA …………………………………………… 4

Economic relations of entrepreneurs ………………………………… ..8

3. The procedure for determining the profitability of the enterprise ……………………… 11

4. Assignment …………………………………………………………………………… ..13

Conclusions and suggestions …………………………………………………………… ... 16

List of used literature ………………………………………… ..17

1. US Small Business Development

Small business in the USA is a huge space, 60% of all jobs. This includes enterprises of various kinds - from fast food chains, cafes and restaurants, to high-tech small firms. In the United States, small business is represented by a combination of a significant number of small and medium-sized enterprises with no more than 20 employees. A significant part of such enterprises has annual turnover of up to $ 3 million.

Small business in the United States began its development in the era of the Great Depression, so its level remains stably high. Federal programs that are only just beginning to be developed in some countries in the United States date back to 1932. At this time, after the time of the Great Depression, the state began to subsidize small enterprises affected by the war. At that time, it was small business that provided job creation in the United States, emphasizing its important social significance.

In 1953, the United States created the Federal Agency - the United States Small Business Administration, which to this day defends and protects the interests of small businesses at the government level. Moreover, the branches of this organization are located in all major cities, so the policy of supporting small businesses applies to all states, and not only to the main economic centers of the United States. The main tasks of the Administration for Small Business and its branches:

assistance in obtaining a loan for a business;

technical and informational support for small business in the USA;

providing guarantees for loans for business;

direct subsidizing and lending to small businesses at the expense of their own budget.

In the USA, a system of criteria is very well developed by which small business is determined. These criteria depend on the type of activity of the small enterprise and the industry in which it operates. In some areas, the number of people working at the enterprise is decisive, in others, turnover and profit.

In addition to the Federal Agency, a special Law Office has been created to comply with legal legislation in relation to small businesses, which defends the interests of business in court and Congress. The US authorities in their concept of economic development assign small business one of the main roles. In the reports of the US government ministers, one and the same idea is constantly slipping that small business is an important lever for improving the economy as a whole.

Already here, differences in the development of small business in the USA are clearly visible. In our country, the state only now began to pay attention to small businesses, and small businesses were forced to develop, survive, evading taxes, etc. While in the United States, for a long time, small business was initially a priority for the economy at the state level. The US experience in creating various small business programs is very valuable, and all programs really work, specific mechanisms for their implementation are provided.

We describe the forms of small business in the United States. Among the legal forms of small business, sole proprietorship has become widespread in the United States. Here the responsibility of the entrepreneur is unlimited. Legal action may be brought against all of his property. Sole enterprises operate mainly in the areas of retail and wholesale trade and services.

The registration procedure for such enterprises is extremely simple. In essence, the execution of any formalities for the registration of a sole proprietorship is not required. The only official document is a tax return. Financial records are not required, their maintenance is necessary primarily for tax purposes. However, certain administrative activities require state administrative licenses.

Such an organizational form of small business as partnership, which is an analogue of the Russian partnership, is quite widespread in the USA.

General partnership (general partnership), or simply partnership, operates on the basis of the Law on Partnerships and an agreement between partners. The Partnership Act (Uniform Partnership Act) was adopted in 1914 and is valid in 44 states (out of 50). Partners have equal rights to management and partnership property, unless otherwise specified in an agreement between them. As in sole enterprises, partnership entrepreneurs have unlimited liability for partnership obligations. Responsibility is of a joint nature.

Partnership in the USA does not pay taxes, since taxes are paid on the income of entrepreneurs included in the partnership. Stained-glass window Partners, however, issue tax returns. A special form K1 is sent to each partner, establishing its share in the profit and loss of the partnership. It is filed with the tax authorities along with a declaration of individual income.

Another legal form of partnership is a limited partnership. There are two categories of partner partners: full and limited liability. Limited partners are liable for partnership obligations only to the extent of their contribution. Such partnerships bring together highly qualified specialists to carry out professional activities in the field of legal and financial services, medicine, etc. Usually they organize small and medium-sized enterprises.

Partnership activities are regulated by the Uniform Limited Partnership Act, adopted in 1916 and in 47 states, as well as the amended Act of 1978 (Revised Uniform Limited Partnership Act). To create a partnership you need at least one full and one limited partner. Creating partnerships requires the implementation of some formal formalities: partners must submit to the state secretariat a certificate signed by them containing information on the type of partnership activity, its members, capital structure, etc. From a tax point of view, the position of limited partnerships is similar to general partnerships.

The most common and universal form of business in the United States is a corporation. The American corporation builds its activities in accordance with the charter (i.e. bowling club articles of association - articles of association) and internal regulations (bylaws). The presence of these documents distinguishes an American corporation from Russian joint-stock companies, where one charter is sufficient. At the same time, the regulation is an internal document of the corporation; it does not need to be approved anywhere.

The federal tax system provides for tax incentives for small corporations (small corporations), exempting them from income tax. According to the Small Business Administration (SBA) of the United States, in 2008 there were 22.1 million enterprises in the country, the so-called "business units", including corporations, partnerships and sole (individual) companies. The sole company is in the personal ownership of one legal entity. In 2008, the sole enterprises in the USA were 16.0 million, or 72.4% of all business structures, corporations there were 4.5 million, or 20.4%, and the number of partner firms was even less - 1.6 million, or 7 ,1%.

In recent years, limited liability companies (LLC) have become increasingly popular in the United States. This is a hybrid or combined legal structure combining features of both corporations (limited property liability of participants) and partnerships (LLC income is taxed in the same way as partnership income, i.e. only as income of its participants). This is their main advantage over corporations, which, as you know, pay income tax. Thus, LLC is quite acceptable for tax planning, and "for a business where image plays an important role, the corporation is better suited.

Family business in the USA refers to the developed forms of small business. Statistics on the state of the family business in Russia are not kept. tombstones Monumenty.ru However, it is known that such a business explicitly or secretly exists in agriculture (farming), in retail trade, in industry and other sectors of the economy. As a rule, this is a small or, more rarely, medium-sized business.

Each city has a department that is responsible for the development of small businesses. It is known that small business in the United States provides most of the gross national product and creates the bulk of jobs.

Since 1953, Small Business Administration (SBA), founded by the US Congress, has been operating for financial support of small and medium-sized businesses (SMEs) in the United States. SBA has an annual budget of $ 15 billion, with 72% of these funds being used to guarantee loans. The scope of guarantees depends on the purpose, duration and amount of the loan. For amounts not exceeding 750 thousand dollars, the guarantee is 75% of the loan, for amounts less than 100 thousand dollars - 80%. The terms for loans for working capital replenishment are up to 10 years, for investments in fixed assets - up to 25 years.

Small business development is now most relevant for US financial policy, as it could potentially solve the problem of unemployment. During the crisis period, a significant number of reductions affected precisely small enterprises - now these workers can again find an opportunity to find a place. The normal functioning of small businesses should also ensure the restoration of confidence among banks in borrowers.

2. Economic relations of entrepreneurs

Individual entrepreneurs are individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity (PBUL), as well as private notaries, lawyers who have established law offices (clause 2 of article 11 of the Tax Code of the Russian Federation).

Entrepreneurs in the process of financial and economic activity have economic relations that reflect mutual obligations related to obtaining or selling material assets, performing work or rendering services to each other, according to calculations with the budget for taxes, with banks for loans, social security and insurance bodies for deductions, as well as with other legal entities and individuals according to the calculations arising from the norms established by law or the terms of agreements on mutual services.

The following types of business relations of entrepreneurs can be distinguished:

With suppliers of inventory items;

With buyers and customers;

With staff working for an individual entrepreneur;

With the budget - regarding the payment of taxes and fees to budgets of various levels;

With extrabudgetary funds - regarding the payment of taxes and fees to extrabudgetary funds;

With financial institutions - about obtaining loans and loans;

With authorities at the local, regional and federal levels (regarding obtaining a license, concluding lease agreements, receiving financial assistance, subsidies, concluding an agreement on receiving a state order, etc.)

Relations with customers and suppliers are built on a contractual basis. The general methodology for accounting for settlements is associated with obligations arising mainly from supply and contract agreements. A supply contract is one of the most commonly used business contracts. It is aimed at the transfer of ownership of property (other property rights) to the goods from the seller (supplier) to the buyer. This contract is one of the main types of sales contract.

Many people seek to open their own business in the USA. For some, this is an opportunity to immigrate in the future, and for someone - a huge investment potential. Whatever your goals, we’ll show you how to open a business in America using the example of California!

US business

“How to open a business in the USA?” Is a very popular question on the Web. And this is not surprising, because to open your own business in America is quite simple. Everything happens quickly and without unnecessary bureaucracy, because most actions are performed online. The process and cost of registration varies slightly from state to state, as does the size of taxes. In California, they are not the lowest, but there are huge investments and large business incubators here, and it is much easier to interact with them when your activities are regulated by the laws of one state.

   Photo: shutterstock

Open a business in America: options

There are several options for starting a business in the States. The first two are designed for foreigners, and the third, rather, for residents. Let's talk briefly about each of them.

  Option 1. Transfer your old business

If for the last three years you have been holding the position of the head (top manager, leading specialist) of a commercial enterprise that has been working successfully for more than a year and you have subordinates, you can get a non-immigrant work visa. This is called multinational executive transfer. It is issued for 5 or 7 years. But keep in mind that your American company is required to conduct a business similar to the one that you have been doing so successfully in your home country.

Option 2. Invest in the US economy

Perhaps the most expensive business opening in the United States. Investor visas (E-2, EB-5) are not available to everyone, but only to citizens of those countries with which the United States has an agreement. Among them are Ukraine, Moldova, Georgia, Azerbaijan, Kazakhstan, etc. (Russia is not included in this list). A complete list can be found. The amount of investment is not officially regulated and is considered separately in each case, but usually it is from $ 100,000 to $ 500,000 minimum. You can buy both a ready-made business and a franchise.

Option 3. Open a new business

And finally, you can open your own new business in the States. If you are a resident and you have an SSN - everything is simple. However, how to open a business in the USA to a foreigner? In fact, not so difficult. For example, you can find an American with an SSN or hire an American representative. Step-by-step instructions on how to open a business in America, read below.

How to open your business in the USA: step-by-step instructions

STEP 1: Preparation

To get started, study your existing business and determine the most suitable. Assess your chances in the market, draw up a business plan, find an investor and partners, if necessary.

   Photo: shutterstock

STEP 2: Checking the company name

Before you open a business in America, you need to come up with the name of the future company and check if there is a legal entity in California with the same or very similar name. You can check the availability of the name and even reserve it on the official website of the Secretary of State.

An American address is required for a company registered in the United States. Many registration firms provide this service for a fee. In California, it should be a physical address, not just a mailbox

   Photo: shutterstock

STEP 3: Register with the Secretary General

The registration form can be filled out electronically directly on the site. There you can find some tips for filling it out. In addition to the company name and information about the founders, you must specify the California address and information about your legal representative. The cost of registration depends on the chosen form of doing business and varies on average from $ 85 to $ 115. However, it is worth considering the additional costs of a representative and the opening of a PO Box, if you require it.

   Photo: shutterstock

STEP 4: Register for tax

The tax identification number (EIN for residents or TIN for foreigners) is needed in order to pay taxes, to be able to open a bank account and hire employees. You can get it for free at the Internal Revenue Service (IRS). To become the owner of EIN, you just need to fill out an online form or send it in print form by mail. If any of your employees or representatives has an SNN, it will greatly simplify for you starting a business in the USA. In order to receive a TIN, a non-resident needs to print, fill out and send the form along with other necessary documents by mail. You can also apply through an authorized agent or use the help of one of.

To learn more about upcoming taxes, visit taxes.ca.gov

Valery Elovskikh, US Business Development Consultant

As for the process of registering a company, you have several options: register a company yourself, go to specialized Internet services or register with a lawyer. All information on the registration of the enterprise: verification of the name of the future company, the necessary forms of documents, cost of services, etc. - you can find on the website of the secretary of the state in which you live. If we talk about the timing, the registration of the company in the usual mode takes from 25 business days. If you pay for urgent registration, then you can meet 1 to 10 working days. This is provided that you have all the documents ready

   Photo: shutterstock

STEP 5: Licenses and Permissions

Just opening a business in America is not enough; special licenses and permits are required to operate. You can find out which of them you need. To do this, fill in only two fields: the name of the city where your business will be located; and what you are going to do (sell flowers, repair cars, deliver packages, etc., select from the list). After that, the site will give you a list of the necessary licenses and permissions to carry out your activities.

STEP 6: Opening a bank account

After receiving the tax identification number, you can go to the bank, open an account. The requirements for the documents provided are set by the banks themselves, but you cannot do without confirmation of registration with the state secretary and tax identification number.

   Photo: shutterstock

The development of small business in each country took place in different ways, but in each state there came a moment of their mass emergence, contributing to the stabilization of market relations in all its spheres, from social to economic. As we have already found out, entrepreneurship plays a significant role in the economies of developing countries, but it is the United States that pays the greatest attention to small business both earlier and today, while having one of the most stable economies in the world. Therefore, in order to examine in more detail the features of the functioning of small business, we will rely on the experience and example of this country.

It should be noted that small business for Americans is an integral part of their daily activities, for some - a way of life. The number of small businesses is almost 20 thousand units, while per 1,000 inhabitants it is 74. They provide two-thirds of the total increase in new jobs, as a result of which the United States can achieve a significant reduction in unemployment.

In this major economic power, not only small business is well developed, but also large business, and they, in turn, are the most promising and relevant areas. For the most part, small businesses dominate the production of goods and services. So, in 2011, more than 30% of all small and medium-sized enterprises were opened in services and agriculture, while about 40% of employees were employed, while only 24% of enterprises and 20% of workers were in trade. This most eloquently tells us about the reluctance of American entrepreneurs to open small businesses in large industries. There are quite a lot of reasons and explanations for such behavior at that time - most often they are the same in all countries, but with only the slightest exceptions and changes. They were discussed in more detail in the first chapter.

The population gradually came to the realization of the need to change traditional technological thinking and practice, which was accompanied by its impasse and simplicity, so soon attempts were made to expand its narrow focus. For example, one of the large American companies successfully overcame this problem by transforming each administrative department into an independent small business, while providing it with complete freedom and independence (naturally, within the company). In addition, small businesses help fill and diversify the consumer market - this is important for the country, because according to researchers, Americans spend about 8 trillion annually. dollars to pay for goods and services.

Currently, due to the differentiation of social production and the deepening of specialization, in the USA there is a noticeable development by small businesses of such large areas as industry, engineering and electrical engineering. Labor productivity at such enterprises can be several times higher than at the same enterprises, but they are highly specialized. But all the same, at the moment, most of the country's GDP production falls on the construction industry - 75%, the service sector - 81% and wholesale trade - 87%.

But even in such an industrialized country as the United States, small business experiences a whole list of the most diverse difficulties. First of all, it is worth noting the economic risk, which is much higher than in the field of large business, therefore, the life expectancy of small enterprises is significantly reduced and more than half of them are closed in the first few years of their formation. At the same time, this process is an integral part of the functioning of the economy, thanks to which it gets rid of weak, that is, unprofitable and inefficient representatives of all types of businesses, increasing the chances of more resilient enterprises. But the state is trying, regardless of such processes, to keep the desire of potential entrepreneurs to create their own small business, therefore, if they are unprofitable or completely ruined, it helps to make the process of closing them less painful for the entrepreneurs themselves. This helps to prevent society from the irrational use of various economic resources, and also prevents the emergence of micro-crises in the country. Therefore, in the USA there is an active movement of small business, because for each of the companies that have gone bankrupt and left this type of business, there are about a thousand newly formed.

So another obvious obstacle for small business can be the presence of a large one. Most often, he loses the second "in the race for loans." U.S. banks more often refuse to grant small loans to small enterprises, and even if they give them out, they are usually at a high percentage, which leads to an inevitable increase in costs and, as a result, an increase in the price of products and services provided.

Therefore, comprehensive support from the state is a significant factor for successfully overcoming obstacles to small businesses. In this context, it is worth recalling the famous phrase of C. Coolidge, who arrived as president of the United States in the 1920s: "Bussines of America is business." If we literally translate this statement, then we get the following: "The cause of America is business." But, according to some researchers, it can be interpreted a little more broadly and by business we should understand the names of small businesses, because at that time most enterprises belonged to this type.

An important role in the success of small businesses is played by the US Congress, the Financial Trade Commission, various federal funds, trade associations, centers, small business development institutions and many others. At the same time, if small business enjoys support in Congress, they are given many benefits, especially for paying taxes - this is the form that Americans call "protecting this nice guy." A small tax bonus “first year bonus” also applies to small businesses, when the tax is not taken on the entire amount, but only on 50% of it.

In the United States, along with the above organizations, there is also a system of criteria indicators, which allows for differentiated state support of small business entities. As far back as 1953, such a unit as the Administration for Small Business Affairs was created. SBA (Small Business Administration) is a federal agency consisting of several structural levels, including the headquarters located in New York, 10 regional associations and more than 100 branches located throughout the country. SBA officials in the center and in the localities do not run small businesses, but only provide assistance in providing advisory, technical and, importantly, financial services.

SBA financial assistance can be obtained in the form of a loan, guarantee or loan. The annual budget of this organization is from $ 400 to $ 600 billion. The administration acts as a guarantor of a loan to small enterprises in front of the bank in three cases:

The company takes a loan at the start and does not have a credit history;

The borrower needs a long-term loan, the term of which exceeds the bank's internal credit requirements;

Subject to the issuance of a loan for an activity unknown to the lender.

In addition to financial, technical and legal support, SBA pays attention to information support, including information support of the event and dissemination of information on the most relevant issues for this sector of the economy.

Another example would be an organization called the Soap Enterprises Management, which organizes activities in two directions. The first includes support and counseling activities, the second includes direct and indirect financing. But the main goal of this organization, operating within the federal government, is to help entrepreneurs who are launching commercial initiatives.

UMP is one of the oldest and operates largely due to the recognition by the Americans of the role of small private enterprises. A few years ago, the US Congress passed a law that said it would transfer 20% of every project or federal government law to small businesses. Therefore, it is now not at all surprising that it is in this country that such an increase in activity in the sphere of small and medium-sized businesses is observed. This also happens due to the fact that US entrepreneurship makes more than half of the difference in the rates of economic growth (taking into account the fact that other factors remain constant).

This type of development of a small business such as a home-based business or it is also called family business is also gaining more and more development. Based on studies conducted by one of the American firms Link re Sources, it became known that more than 40 million people began to work at home in whole or in part, some of them after leaving their main job. One in three American families is now employed in small business. At the same time, you should not understand this type of business quite literally, because there are many types of entrepreneurship that are carried out in home mode only partially. Now, in connection with the significant achievements of scientific and technological progress, home-based business is expanding significantly and includes a huge number of diverse activities. This includes the provision of private educational services, for example, tutoring or organizing various courses and trainings, legal, consulting and computer services, consumer services, etc. The main thing in this type of business is the presence of a personal computer, with which employees can work effectively at home.

One of the features of small business in the United States is franchising. Recently, this area has begun to develop very actively, and it is boldly called one of the main, and the country itself, the world's largest franchised power.

The founder of this form of large and small business is the American inventor and industrialist, as well as the world famous founder of the production of sewing machines - Isaac Singer. Having first implemented their invention and production, he faced a problem that was associated with their marketing. On the one hand, at that time he did not have enough capital to increase their production due to increased demand, on the other hand, the problem was the ability to use a sewing machine. Buyers needed to learn this before they made a purchase. The explanation is simple: do we often get something that we cannot use? It's like buying a machine tool based entirely on electronics in the workshop. Workers simply will not know how to use it, and as a result, it will become a waste of money. However, a way out of this situation can be found either in the advanced training of the workers of these same machines, or in conducting training courses.

Currently, about half of all franchising companies are trading companies, while the leading positions are occupied by public catering enterprises (18%) and clothing stores (11%). For example, in Australia, more than 90% of quick-service merchants operate under franchising agreements. The leader among European countries is Germany, which has more than 500 franchisors and more than 20 thousand franchises. .

Franchising gives a small business a number of advantages, they can consist in a direct increase in sales, the possibility of acquiring the necessary resources at lower prices, continuous training of small businesses in the production and sale of this type of product at the expense of a large company, etc.

There is an International Franchising Association, which directly analyzes this form of entrepreneurship in the whole country. According to the data in the first few years of its existence, franchise enterprises have a higher degree of survival (80%) in the context of all other enterprises (20%). And today in the USA there are about 3 thousand franchisors and 865 thousand franchising points, in which 10 million people are involved.

Drawing conclusions to this chapter, we can start with the fact that small business is what made America's economy one of the most sustainable in the world. Indeed, in the largest economic power, not only big business, but also small business is well developed.

Its economic importance has grown markedly in recent years. The most widespread small business in the United States is represented by industries such as trade, services, industry and agriculture. A feature of the present time is that the development of the fields of electrical engineering and mechanical engineering is taking place as a result of the differentiation of social production and the deepening of specialization.

In the United States, there is strong support for small businesses, including the efforts of the federal government, states, local governments, the public, and private business. Their work is aimed at developing a kind of support network, which includes financial, logistical, consulting and information support (access to information networks, electronic libraries and databases).

Largely due to precisely targeted efforts of the government in the field of small business, a favorable climate for entrepreneurship was formed. In this regard, the development of small business in the United States is at a faster pace and serves as the basis for the stable functioning of the economy.