Business Environment in the United States and Trade Relations with Turkey
The United States offers a highly attractive business environment for foreign investors thanks to its position as the world’s largest economy, its advanced financial system, and its strong innovation ecosystem. With globally leading sectors such as technology, finance, manufacturing, healthcare, energy, and services, the United States remains one of the most strategic markets for companies seeking international expansion.
For companies based in Turkey, the United States is frequently evaluated within strategies related to trade, investment, technology partnerships, and access to global markets.
Country Overview
- Official Name: United States of America
- Capital: Washington, D.C.
- Population: Approximately 333 million
- Official Language: English
- Religion: Diverse religious structure, predominantly Christianity
- Climate: Varies significantly by region
- Time Zone: Multiple time zones (UTC−05:00 to UTC−08:00)
- Country Code: +1
- Currency: United States Dollar (USD)
How to Set Up a Company in the United States
Foreign investors can establish different types of corporate structures in the United States depending on their business objectives and operational needs.
Main Types of Companies
- Limited Liability Company (LLC)
- Corporation (C-Corp or S-Corp)
- Branch Office
- Representative Office
The Limited Liability Company (LLC) structure, which has similarities with the limited company structure in Turkey, is commonly preferred by foreign investors due to its flexible management structure and tax advantages.
Company Formation Process in the United States
The company formation process in the United States generally includes the following steps:
- Determining the company name
- Selecting the state of incorporation
- Preparing the formation documents
- Appointing managers or directors
- Registering the company with the state authorities
- Obtaining a federal tax identification number (EIN)
- Opening a corporate bank account
Depending on the state chosen for incorporation, procedures and timelines may vary.
Documents Required for Company Formation
For Individual Shareholders
- Passport copies
- Address verification documents
- Company formation documents
- Manager or director appointment information
For Corporate Shareholders
- Company incorporation certificate
- Trade registry record or equivalent document
- Articles of association or bylaws
- Board of directors resolution
- Apostilled company documents
When Turkish companies participate as shareholders, document authentication and translation procedures may influence the establishment timeline.
Is a Local Partner Required in the United States?
Foreign investors can fully own companies established in the United States. A local partner is not required.
However, companies must appoint a registered agent within the state of incorporation. While a locally resident manager is not mandatory, having local representation may provide advantages in banking procedures and operational processes.
United States Tax System and Comparison with Turkey
Corporate Tax
- United States: Federal corporate tax rate of approximately 21% (state taxes may also apply depending on the state)
- Turkey: Corporate tax rates vary depending on current legislation.
Sales Tax
The United States does not have a federal VAT system. Instead, sales taxes are applied at state and local levels, with varying rates depending on the jurisdiction.
Withholding Taxes
- Dividend payments to foreign shareholders may be subject to withholding tax, generally around 30%, although reduced rates may apply under the Turkey–United States Double Taxation Agreement.
- For Turkish investors, tax structuring and international tax planning should be carefully evaluated during the establishment phase.
Accounting System and Operational Compliance
The accounting system in the United States generally follows US GAAP (Generally Accepted Accounting Principles), although some companies may also prepare reports under IFRS depending on international operations.
Companies operating in the United States must comply with several financial and regulatory requirements, including:
- Annual financial reporting
- Federal and state corporate tax filings
- Payroll and employment tax reporting
- Compliance with federal and state regulations
Companies familiar with accounting practices in Turkey may need to adapt to US-specific reporting and regulatory frameworks.
Opening a Bank Account in the United States
When Turkey-based companies establish operations in the United States, the banking process may require additional compliance checks.
Banks typically evaluate:
- Transparency of the ultimate beneficial ownership structure
- Clarity of the business plan
- Compliance with anti-money laundering (AML) regulations
- Identification of company managers and authorized signatories
Banks may conduct detailed compliance reviews before approving corporate accounts.
Tax Residency Considerations
If the effective management of a US company is conducted from another country, including Turkey, tax residency and permanent establishment considerations may arise.
Important factors include:
- Location of management decisions
- Actual place of business activities
- Structure of management roles
- Intercompany agreements within international groups
These issues should be evaluated carefully during the corporate structuring stage.
Company Formation Checklist
Key steps for establishing a company in the United States include:
- Determining the state of incorporation
- Selecting a registered agent
- Completing manager or director appointments
- Obtaining a federal tax identification number (EIN)
- Opening a corporate bank account
- Establishing the accounting system
- Registering payroll and employment obligations
- Accessing federal and state tax systems
- Planning financial flows between Turkey and the United States
Social Security and Employment Regulations
Employers operating in the United States must comply with federal and state labor laws and register employees for payroll tax reporting. Employer and employee contributions to social security and Medicare are calculated based on employee salaries.
Company Formation Timeline in the United States
Typical timelines may vary depending on the selected state and banking procedures.
Documentation preparation: 2–5 business days
Company registration: 2–10 business days (depending on the state)
Obtaining EIN: 5–10 business days
Bank compliance procedures: 10–20 business days
Operational activation: 3–5 business days
Total estimated timeframe: approximately 2–4 weeks
Common Mistakes Made by Investors
Some of the most common mistakes made by international investors include:
- Assuming company registration alone is sufficient for operations
- Underestimating banking and compliance procedures
- Ignoring state-level regulatory requirements
- Conducting tax planning only after company formation
Proper planning before incorporation significantly reduces operational and regulatory risks.
OzbekCPA Advisory Support for Turkey–US Business Structures
At OzbekCPA, we provide professional support for investors structuring their business operations between Turkey and the United States.
Our services include:
- Company formation advisory
- Tax compliance and structuring
- Accounting organization
- Corporate governance support
- Cross-border investment advisory
If you are planning to establish a company in the United States or structure operations between Turkey and the US market, our team would be pleased to assist you.
Contact OzbekCPA for further information.
