Category: Case Study

Background & Challenge

Client: Five OutBound

Industry: IT Consulting & Business Solutions (Data Engineering, Cloud Solutions, Staffing, and Advisory Services)

Location: International (outside the U.S.)

Today, Five OutBound is a growing IT and consulting company, providing a wide variety of cloud adoption, data engineering, software consulting, and staffing solutions to clients across the globe. With the digital transformation that is occurring in various industries, companies in the United States are among the most consumers of such services.

Despite their international presence, the company still faced challenges in establishing a credible presence in the United States. Some of the challenges included:

• Difficulty in signing contracts with U.S. clients who prefer working with domestic entities.
  
• High chance of losing clients due to the lack a U.S. business bank account
• Non compliance with U.S. tax law due to lack of the U.S. EIN (Employer Identification Number)
• Restricted to payment processors such as Stripe

In order to remove these vulnerabilities, Five OutBound removed these vulnerabilities by letting Bizstartz set the U.S. business infrastructure.

The Problems

The problems that Five OutBound faced are problems many other international founders and service providers face when trying to break into the United States market.

Deep rooted Restrictions

Many states across the United States are open to foreign LLCs. But the licensing process and additional documentation can get illusive without professional help.

IRS EIN Application for Foreign Owners

However frustrating it may be, there are numerous processes that need to be undertaken when trying to get EIN, especially as a non-resident foreigner. Oftentimes, people are required to file IRS form SS-4 and people get confused due to the lack of SSN or ITIN. Any minor blunder can result in weeks or even months of delays.

Obtaining payment gateways (especially Stripe)

Payments from Stripe can be a little tricky because you have to have a business form, and a bank account registered for a Foreign LLC in the United States in order to get approval. Many people who apply for it, only face rejection.

Obtaining a bank account

Obtaining a Bank account is tricky because foreign LLCs or non interstate companies need to follow KYC and AML checks which is along the lines of more traditional banking approaches. Sometimes foreign owners are required to be in the country to get a Foreign LLC which can be troublesome.

Time Sensitivity

Time is a major issue Five OutBound was trying to address. Every minute spent waiting, could be a minute lost in making use of an opportunity in the United States market.

The problems we solved

At BizStartz, we help clients from other countries establish and expand their businesses in the US from the ground up. For Five OutBound, we created a tailored strategy.

1. Formation of the LLC

• We help Five OutBound strategize on which state to register their LLC out of the rest and takes in factors like cost, ease of compliant, and approval rates for bank accounts.
• All legal formation documents once and for all prepared and filed and then an approval was granted without unnecessary delays.
• A reliable registered agent was appointed to make sure the company meets all the legal requirements for U.S. state regulations.
• The company documents and the LLC Official Certificate of Formation along with the rest of the client documents were sent to the client.

2. Application for EIN

• For the company, we filled out and submitted IRS Form SS-4 and made sure all the information was in synch with the documents used to register the LLC.
• Because the owners were foreign nationals. we processed the additional documentation requirements (such as identity verification).
• Since Five OutBound can operate, hire, and pay US taxes, they were successfully issued the EIN.

3. Opening a US bank account

• We used our affiliations and fillings with other banks and influencer techniques to help ease the process.
• We walked the client through the KYC procedures and notarizations and identity checks, and achieved all “compliance” objectives.
• In a few weeks, Five Outbound had a fully functional US business checking account capable of receiving payments in USD directly from the client.

4. Stripe account approval

• With the LLC, EIN, and US bank account, we then moved to apply for a Stripe account.
• We made sure all documents, like the LLC registration, EIN and bank paperwork, were aligned as best as possible. This is an important step, even small discrepancies like the company name or address can cause a denial.
• We supported them with Stripe’s verification x requests did compliance check as well.
• The account was successfully approved, and Five Outbound could now also receive credit card payments from clients within the USA and overseas.

Along with the account came certain expectations. Five Outbound was to pay due fees on time and in full. Five Outbound was also liable for accounting and financial reporting compliance within the Stripe system.

Timeline & Milestones

• Weeks one and two. Planning, consultation and LLC formation were all completed at the end of week 2.
• Week three. The application for an EIN was approved after submission.
• Weeks four and five. Account opened after KYC compliance checks.
• Week six. Stripe account approved and company’s financial setup integrated.

A process which would normally take months of processing and repetitive attempts, was successfully completed in a few weeks due to the step-by-step ensured and organized framework.

Results & Benefits

Upon completion of the requirements, Five OutBound was able to achieve:

1. U.S Legal Entity (LLC)

Gained full access to the U.S. market with an established reputable legal business framework which facilitates trust with American clients.

2. EIN (Tax Identity Number)

Gained access to U.S legal tax identity enabling smooth processing of tax returns to the IRS.

3. U.S. Business Bank Account

Gained direct access to American Financial system which eases client payments, and enhances financial management.

4. With Stripe, Five Outbound has

the ability to instantly approve payments with real-time wiring to U.S. Bank accounts.

5. Better Brand Image

With an established presence in the U.S. Five Outbound was able to gain more clients easily, thus strengthening the company’s credibility and business opportunities.

6. Growth Opportunities

Having completed these initial steps, the company is now able to grow rapidly in the U.S market.

Key Takeaways & Best Practices

• Select the appropriate state: Not all American states are the same for foreign-owned LLCs. Choosing the appropriate state can save time and resources.
• Maintain uniform documentation: Bank and Stripe approvals require legal document approvals with no discrepancies, or else there will be delays.
• Be Ready for IRS Compliance: Rest assured, IRS will always ask for additional documents. Prepare to submit supporting documentation, which will save time.
• Collaborate with professionals: DIY strategies run the risk of rejection or simply wasted time. Expert help guarantees smoother approvals.

Client Testimonials

Conclusion

For overseas businesses, moving into the U.S can feel like a herculean task. However, with the right partner, the whole process can feel easy, streamlined, and completely stress-free.

Setting up a LLC, applying for an EIN, opening a bank account, and even integrating payment systems don’t have to mean hours of painstaking work.

We at Bizstartz help entrepreneurs like Five OutBound from overseas take advantage of the U.S. market. We help them expand their business globally.

👉 Advance your expansion and get in touch with Bizstartz to get your process started.

Client: The Khukuri House (Nepal)

Industry: Kukri Knives & Traditional Handicrafts

Services Provided by Bizstartz: Formation of LLC with EIN, US Bank Account, Amazon Seller Account, US LLC

Starting in 1991 with a base in Kathmandu, Nepal, The Khukuri House has established itself as a global leader in crafting the Kukri knife that is a knife with a unique shape and is a symbol of Nepal, particularly among the Gurkhas.

All Kukri that the company sells is backed by a unique blend of exquisite craftsmanship and modern hand-forging techniques, a standard that Khukuri House has perfected over the years in meeting customer requirements from all over the globe including collectors, martial artists, and military enthusiasts.

Although the company has earned itself a reputable status in various markets, it still is facing obstacles with the US market. Customers still prefer accessing it on trusted sites like Amazon.

As a result, Khukuri House recognized the pressing need to develop a business foothold within the United States. They started working with Bizstartz, specializing in assisting foreign nationals in establishing their business presence in the United States and providing tools for international business expansion.

Challenges

Khukuri House encountered a number of challenges prior to collaborating with Bizstartz. These challenges hampered their efforts to grow in the United States.

Absence of a US Based Business

Khukuri House’s ability to access and use payment gateways, close contracts with American partners, and open American bank accounts was severely constrained by the absence of a registered American company. Many platform for online retailers, and even Amazon, give preference to businesses with a registered American entity.

Banking and Payment Issues

Payments from American customers were expensive and time-consuming. International wires were unfavorable due to high costs, slow processing, and unfavorable currency exchange. This not only impacted profits, but also the ability to expand operations.

Tax and Compliance Burden

To register and operate on Amazon and similar platforms, Khukuri House was restricted due to the lack of an Employer Identification Number (EIN). This absence of an EIN severely hampered their smooth functioning within the United States.

Amazon Seller Account Approval

Our biggest motivation behind the Khukuri House was selling through Amazon U.S. However, creating a seller account from outside the U.S. Amazon keeps documentation, tax obligations, and banking details at a premium value and fully legitimized, something the Khukuri House was missing before seeking the aid of Bizstartz,

Credibility with U.S. Customers

Having having a brand a robust brand at the international scale did not contract Khukuri House. Even still, a parade of consumers in the U.S. opt to transact with the little blue dot. It was all risk, not reward, to have little to no presence and building faith and credibility in one of the most lucrative and cut-throat landscapes of the business world.

All of this considered, Khukuri House was, it was evident, stepping in to a challenge of complex cross-border barriers and business expansion.

Bizstartz Solution

In order to combat this nightmare, Bizstartz rolled out a comprehensive set of solutions Khukuri House infamously known for when it comes to the U.S. Rather than focusing on a single aspect of the problem, Bizstartz took a total approach toward the legal, tax, banking, and eCommerce marketplace all in one.

Below are some of the results Bizstartz managed to hit:

1. U.S. LLC Formation

Bizstartz helped Khukuri House form a U.S. Limited Liability Company (LLC) in a business-friendly state. This gave the company:

• A legal identity in the United States, making it easier to operate and scale.
  
• Access to business protections and limited liability for its owners.
  

Eligibility to sign contracts, open bank accounts, and register on U.S. eCommerce platforms.

2. Registration and Application for an EIN

Following, Bizstartz received an Employer Identification Number from the IRS. This was a critical step for these reasons:

• An Amazon account requires an EIN to confirm compliance with tax requirements.
• Banking institutions in the US require an EIN for opening a business bank account.
• Having an EIN permits Khukuri House to abide with US tax regulations and to submit the relevant reports.

3. Opening Bank Accounts in the US

Opening a U.S. bank account is one of the biggest hurdles for non-U.S. residents. Bizstartz simplified the process by:

• Preparing all necessary documents from the LLC and EIN.
  
• Connecting Khukuri House with banking partners who accept non-resident U.S. LLCs.
  
• Ensuring smooth onboarding so they could start receiving payments in U.S. dollars directly.
  

This significantly reduced costs associated with international transactions and improved cash flow for reinvesting in inventory and marketing.

4. Approval for an Amazon Seller Account

In the end, Bizstartz has the US LLC, Bank Account and EIN streamlined the application process for opening an Amazon Seller Account. In record time the accounts were ready. This is mostly due to the fact all the documents were already organized. He instantly gained access to one of the largest online marketplaces in the world.

Results

Working with Bizstartz helped Khukuri House reach important business achievements which influenced their expansion to the United States.

Increased Presence in the United States: Today, Khukuri House carries an American LLC with an EIN, which makes their business operated in the United States, thus establishing more credibility with the customers and platforms.

Reduced Cost and Increased Speed of Payment: Khukuri House is able to retrieve Amazon and direct customer payments in US dollars due to the US bank account, eliminating the hassle of conversion fees.

Gained Access to the Marketplace: Approval of the Amazon Seller Account enables Khukuri House to sell to millions of customers in the United States through a trusted platform.

Increased Credibility: Presence in the US enhances brand reputation and reassures American buyers of their credibility.

Increased Growth Potential: With streamlined operations, Khukuri House is able to scale faster, expand their inventory, and reinvest profits in marketing and logistics in the United States.

Key Takeaways

The important lessons of this case concerning the expansion of international businesses to the United States are underlined with this success:

• A US LLC adds to and keeps protection, while providing needed financial systems.
• Marketplace approvals and compliance issues are clarified with EIN registration.
• A US bank account unclogs the payments and reduces costing.
• The right U.S. setup makes the approval of Amazon Seller Accounts hassle-free.

Instead of worrying about the paperwork, partnering with an industry expert such as Bizstartz helps streamline the process, ensuring the business focuses on growth.

Client Testimonial

Conclusion

Kukuri House is an example of how with the right assistance, traditional businesses from any corner of the globe can make headway into the United States. Kukuri House seamlessly integrated the U.S. LLC, EIN, U.S. bank account, Amazon Seller and Expansion strategy and transformed its global growth potential.

Kukuri House has been able to navigate the difficulties associated with a non-U.S. entrepreneur, due to the expert leadership of Bizstartz. U.S. clients can now enjoy the enhanced service offerings of Kukuri House who is now able to scale operations, and protect the valuable heritage of Nepali craftsmanship for the world.

At Bizstartz, we cut the hustle of expansion for international entrepreneurs into the U.S. market.

Many international businesspeople consider relocating their business to the United States as a sort of unfinished chapter in life. Starting a business and dealing with the seemingly complicated American regulations and setting up a business bank accounts from a different country is challenging.

At BizStartz we understand and appreciate how complicated start ups can be. In this case study we will focus on how we assisted the international company Easy Grow Solution set up their presence in America by forming an LLC and getting an EIN as well as a business bank account.

About Easy Grow Solution

Easy Grow Solution is a company is always on the forefront of developing new tools and strategies to aid their customers in growing their business. In an effort to grow their Easy Grow Solution decided to expand to America for the purpose of gaining international clientele and improving global transaction.

The Challenge

Easy Grow Solution like many other international entrepreneurs faced several obstacles when trying to enter the United States.

• Having to understand American business laws. What type of structure or entity is best for what we are trying to do?
• What are the necessities and steps to obtain a tax identification number?
• The third and final obstacle is the most significant and it is trying to open a bank account.

They needed someone who understood the process, and could simplify the process and manage the intricacies, this is where Bizstartz came in.

Our Solution

Bizstartz provided an end to end solution integrating Easy Grow Solution’s requirements.

1. LLC Formation

We assisted Easy Grow Solution in setting up an LLC in the United States, as the LLC is the most flexible and popular entity among foreigners. We took care of the:

• Name availability search
• Registration of LLC in a business-friendly state
• Filing and drafting of the Articles of Organization
• Provision of Registered Agent service

2. EIN Acquisition

After the LLC was formed, the next step was obtaining an Employer Identification Number (EIN) from the IRS. This is essential for:

• Tax Filing
• Bank account opening
• Employee hiring (if applicable)

Bizstartz managed the entire EIN application process, ensuring Easy Grow Solution received their Tax ID without delays.

3. Application for a United States Bank Account

Undoubtedly the most difficult step for foreigners is opening a business bank account in the United States. Bizstartz assisted Easy Grow Solution in:

• Determining the most appropriate banking alternative
• Compiling the needed documents
• Obtaining and fulfilling the approval of their United States account.

This allowed the company to confidently transact with their United States clients and foster trust in the American market.

The Results

Thanks to the work of Bizstartz, Easy Grow Solution was able to:

• File a legally compliant U.S. LLC
• Obtain an EIN (Tax ID Number)
• Get a U.S. business bank account

As a result, Easy Grow Solution is able to operate with confidence in the U.S., broaden their range of offered services, and enhance their global presence.

Client Testimonial

Why Choose Bizstartz?

Here we Bizstartz help non U.S. entrepreneurs start and grow their business in the USA. We take care of the entire process from formation of LLC, EIN acquisition, BOI filing, bookkeeping, and U.S. banking.

If U.S. expansion is in your plans then the the Bizstartz team is here to help you.

👉 Take the First Step with Bizstartz