Blog Post
Andrés Glennen

The reasons why many companies move to the United States

In recent years, many companies have made the strategic decision to move their operations to the United States. This phenomenon is no accident, since it responds to a series of economic, fiscal and access to capital markets benefits that the North American giant offers. In this article, we'll explore the reasons behind this trend and how tokenized real estate investment platforms, such as Reental, embrace this trend.

Attractiveness of the US market

The United States market is an attractive hub for any investor because it offers solid business rules, legal security, access to funds, financing, a stable currency and a predictable future based on statistics, averages and comparables. The fact is that the North American giant enjoys economic stability that allows small and medium-sized capitalists to enter. Several notable professionals and experts agree on a common denominator, which is the myriad of opportunities that open up when you move your operation to the United States looking for. Normally, American investors have more capital and greater liquidity.

The United States has a much more mature market in terms of venture capital, innovation and entrepreneurship. Antonio G. Asturiano, partner of the firm Aktion Legal, points out that the American market would represent three times more in terms of investment, startups and operations than the whole of Europe combined. In addition, it points out that some American funds or investors have in their internal statutes the theme of not investing outside the US, so if you change operations you are accessing that market.

Economic Stability and Legal Security

The United States has a regulatory framework that ensures clear and fair trade transactions. In the US, regulations don't usually change constantly, giving investors stability and peace of mind. This strength in trading rules provides investors with confidence.

Another point, as we have already seen, is its capital market, one of the largest and deepest in the world, offering diverse funding opportunities, from venture capital to investment funds. The breadth of the U.S. market allows access to a greater variety of investors and funds, facilitating the growth and expansion of companies.

The U.S. corporate legal system is robust and reliable, assuring companies that their rights and properties will be protected, reducing the risk of legal uncertainty. For example, the structure par excellence chosen by many investors is the “Limited Liability Companies” (LLC), which in Spanish are translated as SRL or Limited Liability Company, is the most practical and efficient legal option at the administrative, accounting and tax levels when deciding to start any type of activity in the United States.

It has its internal OPERATING AGREEMENT document that makes it possible to establish how the company will be managed and the roles of each member. Detailing these focuses is key when determining the company's responsibility, including the possibility of determining the distribution of profits autonomously, as long as it is established in the company's internal documents.

Examples of successful companies

Here are some examples from recent times that have been able to detect and carry out this strategic step for their companies. Circle is the first one we want to highlight since it plans to move its legal address to the United States. The firm behind USDC plans to move from Ireland to the United States after filing the Initial Public Offering or IPO with the U.S. Securities and Exchange Commission or SEC.

The relocation aligns with Circle's stated intention to go public, as the company filed a Form S-1 with the SEC in January. This change is an important step for Circle, particularly considering the tax and regulatory implications.

This move places Circle directly under U.S. regulatory oversight, including additional scrutiny by the SEC. With its sights set on an Initial Public Offering (IPO), the company appears to be aligning its legal and operational framework to bolster investor confidence and more effectively navigate US regulatory waters.

Other technology companies such as Voicemod and ClimateTrade have also moved their operations to Delaware to access more mature funds and investors and benefit from a favorable regulatory and tax environment.

Tax benefits

One of the biggest advantages of establishing operations in the United States is the flexible structure and tax benefits. States such as Delaware and Florida offer significant tax advantages.

Delaware, known for its business-friendly environment, offers a corporate tax of 8.5%, much lower than in countries like Spain. Compared to many other countries, LLCs in the United States enjoy lower tax rates, making the jurisdiction attractive to international entrepreneurs. If it is true that you pay a small fee, and compared to Spain, which is between 25-35%, the possibility of setting up your company there is even more interesting, and even more so if you want to do fundraising both in Spain and in America.

Another successful state case is that of Florida. To begin with, Florida is one of the few states that has no state income taxes, one of the main reasons why there has been consistent population growth in the state.

Again, compared to other states, Florida has a moderately low corporate tax rate of 5.5%. This is in addition to the absence of inventory taxes, unit taxes, and several other sales tax exemptions. In addition to favorable tax rates, Florida promotes business growth by offering incentives to a wide range of businesses across the state.

Why Reental structures its Holding Company in the US

The connection that exists between the country of capitalism full of opportunities has always been latent in the Latin American people, as we know the close bond that exists to belong to this public has always been desired by countries such as Argentina, which represent 16% of sales to foreign investors in Florida, have been protagonists in this boom. By moving your assets here, as we have already seen, you access a very demanding audience, but you also expose yourself to a potential market such as LATAM.

At Reental, we understand the advantages of operating in a market such as the U.S. The strategy of moving our operations to the United States will allow us to access a larger capital market, take advantage of tax benefits, and provide greater security and transparency to our investors. This strategic move is designed to maximize the value of tokenized real estate investments and ensure sustainable growth.

The transfer of companies to the United States is a phenomenon that reflects the multiple advantages that this market offers: economic stability, legal security, access to capital, and significant tax benefits. For platforms like Reental, these factors are essential to provide our investors with opportunities for growth and profitability in a secure and predictable environment. By understanding and taking advantage of these advantages, we can continue to innovate and provide value to our users, ensuring that their investments are safe and profitable.

Interesting links

Why invest in Real Estate in the United States
Messi in Miami: The Real Estate Market Revolution and Investment Opportunities with Reental
Why invest in Miami? Guide for investors

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