Your business has grown beautifully and you are starting to scan the horizon for opportunities to expand. Only the research seems to indicate that the best opportunities lie within a different state.
This does not mean your dreams should come screeching to a halt. There are many successful business owners who have successfully crossed state lines and their business has continued to grow and expand exponentially. So, how would you go about it?
Start with connectivity
Once you have got all the documentation and permits in place, the next step is to find premises and set up your office/store/warehouse with access to the company computer network. You will need to install a printer/copier before you start because it almost forms part of the skeleton of any business.
A great choice is the energy-efficient Epson Business Inkjet Printers and Copiers. The convenience of this connected device is all about speed and convenience and will help to ensure a smooth transition as you build up your new branch.
Register your business in the new state
The size of your business will determine whether you need to register your business as a foreign entity in a different state. If you are required to do so, you will need to have all your permits, tax certificates and letters of good standing up to date before you can proceed with the application.
Some states have much tighter legislation than others and the registration may be somewhat protracted. Red tape is an international issue, but there is more in some states than in others.
Check your permits and licenses
Depending on the nature of your business, you may need additional permits or licenses to work in a new state. This is homework you will need to do before you set up your “trans-state” business, as you do not want to go to the expense of setting up in a different state only to find you cannot work there without a specific permit or work license.
You would be well advised to do in-depth research in advance. You will find that research and guidance from those more experienced than yourself are vital during this period.
Open a bank account
Before you commit to trading in a different state, open a new bank account and familiarize yourself with any different taxation laws, particularly if you plan to venture outside the USA and you will be trading in a different currency. Make sure that you are familiar and compliant with the tax system and its requirements.
Most of the larger banks offer international services and will have qualified personnel on hand to guide you through the process. They will advise you on what documentation is required and can usually connect with the relevant parties.
Labor laws and wages
Before registering a new business in a foreign state, you will need to do thorough investigations into the local labor law, minimum wage, annual holiday requirements and even different public holidays.
Familiarize yourself with such things as overtime requirements and, for instance, if the local authorities allow trading on certain public holidays or insist on a full shutdown. There are some states, for instance, where trading on a Sunday is completely forbidden.
Import and export
If you are going to be bringing your goods or products into a different state or manufacturing them in the state for export, you will need to familiarize yourself with the customs requirements, import and export duties and additional taxation, and factor that into your calculations to ensure profitability. Check if there are delays in clearing any of the products you trade, as this could cause a void in your cash flow.