The major mistakes that Brazilians make when opening a business in the USA and how to avoid them

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Lack of planning, ignorance of local rules and lack of specialized advice are the main mistakes Brazilians make when opening a business in the United States, according to one expert, who highlights the importance of technical preparation and adequate support.

The dream of starting a business in the United States has attracted an increasing number of Brazilians, especially after increasing opportunities in the American market. However, lack of planning and ignorance of local rules remain the main reasons why many businesses fail in the first few months of operation.

According to Daniela Rizzo Palmieri, a human resources and business specialist and founder of Connect Solutions, a Georgia-based company that helps Brazilians structure companies in the United States, the initial enthusiasm must be accompanied by technical preparation and proper guidance.

“The American business environment is highly competitive, but also very favorable to those who understand the rules of the game. Many entrepreneurs arrive with good ideas, but make fundamental mistakes because they are not familiar with the local legal and tax processes,” explains Daniela.

Among the most common mistakes made by Brazilians, Daniela highlights five:

• Choosing the wrong type of company (LLC, corporation, etc.) – Each form has different tax and legal implications. Many entrepreneurs open the wrong structure and end up paying more taxes than necessary.

• Lack of specific audience and positioning strategy – Opening a company without studying the American market is one of the most serious mistakes. “The consumer profile in the USA is completely different. What works in Brazil may not produce the same results here,” explains the expert.

• Ignoring US labor legislation – Issues such as contracts, benefits, and working hours are handled differently in the USA. “It is common for companies to be fined for not complying with simple business compliance rules,” says Daniela.

• Lack of financial oversight and tax planning – Many businessmen do not look for accountants who specialize in US legislation and end up having problems with the IRS (a body equivalent to the Federal Revenue Service).

• Trying to do everything on your own – The absence of specialist consultancy means that many businesses are born without structure and end up closing before completing one year.

According to Daniela Rizzo Palmieri, the secret to avoiding these risks is to invest in local information and support from the beginning: “Opening a business in the United States is quite possible for Brazilians, but it must be done in the right way. With proper planning, it is possible to save, reduce risks and take advantage of the huge potential of the American market.”

The expert confirms that starting a business outside the country requires a change in mentality:

“In the USA, success is directly linked to compliance and regulation,” concludes Daniela. “Brazilians are creative and determined – when they combine that with the right technical and strategic knowledge, the opportunities for prosperity are enormous.”