How to Launch a Tech Startup in the USA: From Idea to First Success

Eager to start your tech startup in the USA? Wondering if it is even possible? How to make a tech startup in the USA? North America is the home of the most successful startups in the world. Let’s name a few. For instance, SpaceX, Airbnb, Instagram, etc. You have probably heard of these, for they are extremely popular these days. What’s more, these companies have developed from the status of a startup and, within time, became unicorns. According to Statista, in April 2021, the most prominent startup unicorns in the U.S. were the following:

So, it seems to be a great idea to start your startup in the USA. But, where to start from exactly may seem a good question. What are the resources to use? How to launch a software startup in the US today? Inoxoft has the answers you need.

Read further to get the idea of how to launch a startup in the USA. We have gathered only the most needed and current steps to start your own tech business! And, perhaps, you will become a unicorn one day. Good luck!

How to start your tech startup in the U.S. market?

Steps to launch a startup in the USA differ from any other country. Mainly, because each country defines the rules and standards of this procedure individually. But, the most important factor here will be if you are a resident of the country or not. For residents, this process will take up to 10 easy steps to follow, and a lot of paperwork that is worth it. Non-residents that plan to have a remote business from another country and cont on intermediary assistance will need no visa. But to live in the U.S. and work legally, a visa is an obligation. Type of visa to consider:

10 important steps to launch a startup in the USA

According to U.S. Small Business Administration, there is ten obligatory steps guide to launch a startup in the USA to take. These are the most common ones in preparing your startup:

1. Market research

You may know your native country’s market from A to Z. But, the U.S. market is an open field of opportunities you need to explore. Why is it so important? Information you gather about your specific market sector will help you in understanding, who are your potential customers. What’s more, you will research every existing business operation on the market and get to know your competitors. And, this is a great opportunity to plan. You can even make up something about your product or service that will make you stand out from the competition. The following websites can give you a hand with your market research and statistics: NAICS, USA.gov Statistics, Statistical Abstract of the United States, U.S. Census Bureau, Statistics of U.S. Businesses. Also, you can obtain some stats on consumers: Consumer Credit Data, Consumer Product Safety, American FactFinder, Bureau of Labor Statistics, Consumer Spending, Gross Domestic Product (GDP).

2. Business Plan

A business plan is a roadmap to your business’s future functioning. You should never neglect this stage as here you define how to operate. Every business that wants to succeed defines timeframes and means of how to structure, run and grow the future business. This is called mapping. And this is a must to do not only in the USA. With this plan, you can easily attract investors as well as people, who might be interesting in the sphere and work with you. So, set your goal and get it!

3. Funding

Every country like the USA needs to know if you have money to invest in your business development. If you have the money – it’s ok. But if you don’t have the needed sum, what’s then? The USA has opportunities to find potential investors or loan the money. Usually, to give such a loan banks need to see that you have a business strategy and that your niche is not considered unprofitable. Then, they will sign a deal with you.

4. Location

In the USA there is a difference where you make your business headquarters. Physical and online stores have different taxes to pay, legal documents to comply with and revenue to receive. So, it matters a lot where you decide to settle with your product solution or service.

5. Business structure

Knowing your business structure from day 1 will allow you to register your business the right way, define your taxes, and personal liability. For example, the following table discusses 4 common business structures present in America now. Point out, which one is yours.

6. Business name

That’s quite a hard task. You need to highlight in your business name what you are doing. And, maybe, make it distinguishable and catchy. Hard and long names tend to be less attractive to customers. Also, make sure it is not used by anyone else. Wait till your name passes a review and voila – you are a registered startup.

7. Business registration

To become legal on the U.S. market, it is vital to register your business name. This way your name and your brand will be protected from possible namesakes. But, if you’re business name differs from your own, you’ll need to register it with the federal government, and state government. These are the laws.

8. Federal and State tax ID

First, you need to have an employer identification number (EIN). This is the social security number of your business. This number allows you to operate your business legally in the USA. What’s more, every bank door to open your business account will be open for you. Also, it depends on the State, but there might be a requirement to get a tax ID.

9. Licenses and permits

To comply with all the USA standards, obtain additional licenses and permits. They will vary by industry, state, location, etc. But that doesn’t make them less important. A full list of possible licenses and permits can be found by the link.

10. Business bank account

Finally, you will need a bank account to pay taxes and carry out legal activities. If your paperwork looks good – there is no problem getting a bank account in no time. But if there’s something wrong the bank will let you know what’s missing.

How much would it cost to start your startup in the USA?

How to start a tech startup in the US? Calculate the cost of your startup preparation in the USA, and find out what requires investments first. There is no universal model, but you might need this practical step-by-step guide:

• Market research

Analyze everything related to your business idea – location, customer pool, infrastructure, competitor products, and predict your future successes. It might cost you no penny if you will do this research alone. But if you decide to hire a company that provides the kind of analytics services then you should plan this cooperation.

• Business licenses and permits

To receive most of the licenses and permits, you should make corresponding applications. If you already know what licenses you need to have – and you should know by now – count the costs these legal preparations will deduct from your wallet.

• Taxes

Each state has its taxes. So, companies in the USA have to pay both federal and local taxes, which depend on the region. Lead your business legally and pay taxes accordingly.

Also, check the taxes you need to pay as well as the cost on the U.S. government and tax office websites. Don’t forget to select your business’s location and type.

• Insurance policy

Insurance is a much-needed preventive measure. It can your business assets from unexpected cost losses as to probable accidents, lawsuits, or natural disasters. Consider the following types of insurance:

• Working visa (if needed)

If you are not a resident of the USA, visa expenses are required. They depend on the type of visa you need to get – E-2, L-1, O-1. Consult the U.S. visa center to know more.

• Office rent

If you decide to work from a physical location and have some employees- consider office ent. These expenses depend on the type of office you’d like to work in and its location. Modern offices might cost more than little average ones. If your budget allows you to rent something better – that’s ok, if not, search for the one that will match your needs and costs.

• Employee salary

How many employees do you have? What are their skills and experience? When you hire them you’ve promised a salary per month. So, count these salaries and you will get a bigger picture of the costs you need to give out every month.

• Utilities

Even though you already pay office rent, you should also remember that water, gas, electricity supply will come as a separate bill. Even the elevator usage might be included in that bill.

• Buying office working equipment

The office space needs some equipment. Enlist all the equipment you might need. Then, find the pricing for this equipment in the U.S. Consider buying in bulk, this will let you save some money.

• Buying materials (if you produce anything)

If you produce something and need raw materials then consider costs for this option as well. Anything you need to produce your business product will need cost investments.

• Website development

To attract potential customers it is always great to have a website they can view. But, website development also costs. It depends on your needs, of course. But, Inoxoft can give you approximate numbers. Use our app cost calculator to get a general idea.

• Legal and accounting services

You can always resolve any legal and accounting activities on your own. But it will take you a lot of time and effort. For this reason, we recommend hiring a certain person with accounting skills that know American laws. This person will be played every month as your business’s full-time employee.

• Advertising and marketing

To become known in the U.S. market there is a need to advertise your product or services. And, to do it wisely, hire a marketer or, if you have extra costs, a marketing agency. But don’t omit this step as it is quite important. If nobody will know about you, your business will fail.

Read more: how to validate an idea for a startup

Our experience with startups

Inoxoft is an international company providing software development services for startups. We have helped a lot of our U.S. startups to grow their business and consulted them on how to start your startup. So, software development for the United States is our main focus.

With Inoxoft you will receive:

Inoxoft’s team works in Healthcare, Logistics, Education, Fintech, and Real Estate domains. So, we sure know how to launch a successful startup. We create web and mobile apps as well as integrate software.

If you have a business idea and you’d like to know how to start a tech business in the USA – contact us! We can offer you a proof of concept development, which is a great opportunity to test your idea’s feasibility. Or we can consult you on how to build a minimum viable product, which is quite simple and works best for startups. Just leave us a note with your question! Our experts are here to help you get the right answer.

Final thoughts

If you had questions on how to launch a tech startup in the USA, this article has probably given you valuable answers. The U.S. is a country full of possibilities and it allows small businesses to learn on their own how to build a successful tech startup. Most of the greatest startup ideas have turned into unicorns and continue to earn billions of dollars worldwide. Your startup might be the one as well. If you still wonder how to create a tech startup in the USA, don’t hesitate and contact us right away. Inoxoft is here to help you grow to success.