Tools and resources to help your company expand globally

flag United States United States: Operating a business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

Sole proprietorship
Number of partners: One person only.
Capital (max/min): No minimum legal capital required.
Shareholders and liability: The owner is liable for the company's debt.
General Partnership
Number of partners: No limit on the number of partners.
Capital (max/min): No minimum legal capital required.
Shareholders and liability: The General Partner is personally liable, with no limitation, for the company's debts and obligations.
Limited Partnership
Number of partners: In addition of general partners there is one or more limited partners.
Capital (max/min): No minimum legal capital required.
Shareholders and liability: The general partner has unlimited liability for the debt, whereas any limited partners have limited liability up to the amount of their investment.
Public Company
Number of partners: No limit on the number of partners.
Capital (max/min): No minimum legal capital required.
Shareholders and liability: Liability is limited to the value of the capital contributed.
Limited Liability Corporation or LLC
Number of partners: No limit on the number of partners.
Capital (max/min): No minimum legal capital required.
Shareholders and liability: Liability is limited to the value of the capital contributed.
 

Business Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses

To go further, check out our service Business directories.


 

Professional Associations

General Professional Associations
ASE - American Society of Employers
SBA - U.S. Small Business Administration
NAM - National Association of Manufacturers

To go further, check out our service Professional Associations.


 

Business Setup Procedures

Setting Up a Company United States OECD
Procedures (number) 6.00 5.21
Time (days) 4.20 9.47

Source: Doing Business - Latest available data.

 
The Competent Organisation
The U.S. Securities and Exchange Commission. The certificate of incorporation, also called Doing Business As (DBA) must be registered with the Trade Register of the State where the company is located. General Partnerships do not need to be registered.
For Further Information
Doing Business- U.S., for more information on procedures to start a business in the U.S.
U.S. State Corporations Databases
 

Recovery Procedures

Principle
See U.S Code Chapter 11 - Bankruptcy
Minimum Debt-to-Capital Ratio Triggering Liquidation
See U.S Code Chapter 11 - Bankruptcy
Bankruptcy Laws
See U.S Code Chapter 11 - Bankruptcy
Reorganization and Rehabilitation Laws
See U.S Code Chapter 11 - Bankruptcy

Return to top

The Active Population in Figures

201820192020
Labour Force 165,551,383167,329,067165,163,504

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 72.37%72.64%73.11%
Men activity rate 77.77%78.00%78.31%
Women activity rate 66.94%67.23%67.87%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
U.S. Bureau of Labour Statistics
For Further Information About the Labour Market
U.S Bureau of Census

Return to top

Working Conditions

Opening Hours
 
  • Legal Weekly Duration
40 hours
  • Maximum Duration
None. The standard workweek is 40 hours, although many salaried positions (held by workers who are paid weekly or monthly, not by the hour) entail standard workweeks in excess of 40 hours. For hourly employees who work more than 40 hours, overtime pay equal to one and one-half times regular salary is standard.
  • Night Hours
Usually from 6 p.m. to 6 a.m.
Working Rest Day
2 days a week.
Paid Annual Vacation
2 weeks vacation per year and 2 weeks sick leave.
Retirement Age
65 years
Child Labour and Minimum Age For Employment
16 years.
Informal Labour Market
Informal labor market is developed due to the high level of illegal immigration.

Return to top

The Cost of Labour

Pay

Minimum Wage
The minimum wage varies depending on the States and activity sectors. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009.
Average Wage
According to the Bureau of Labor Statistics (BLS), the mean wage for workers in the United States in May 2021 was $58,260 per year.
Other Forms of Pay
  • Pay For Overtime
Overtime pay one-half their regular rates of pay. Almost all employees who make less than USD 455 a week (USD 23,660 a year) are eligible for overtime
  • Pay For Rest Days Worked
One-half their regular rates of pay.
  • Pay For Night Hours
Extra pay for working weekends or nights is a matter of agreement between the employer and the employee
  • Pay For Overtime at Night
Extra pay for working weekends or nights is a matter of agreement between the employer and the employee
 

Social Security Costs

The Areas Covered
Social Security covers old age, survivors and disability insurance (OASDI) and hospital insurance (Medicare). Employers must also pay state and federal unemployment taxes. In general, employers and employees bear the tax equally. OASDI taxes are levied on the first USD 118,500 of wages at a combined rate of 12.4%. Medicare taxes are levied on total wages at a combined rate of 2.9% (plus 0.9% for wages above USD 200,000 annually).

Employers must also pay State and Federal Unemployment Taxes (SUTA and FUTA). FUTA is 6% on the first USD 7,000. SUTA varies aross the states. Employers receive tax credit up to 5.4% against federal tax for amounts paid as SUTA.

Contributions
Contributions Paid By the Employer: OASDI (handicap, disability, old age; 6.2%, imposed on the first USD 147,000 of wages) + Medicare (1.45%) + FUTA (unemployment at the federal level; 6% on first USD 7,000 and applicable for tax credit) + SUTA (unemployment at each state level; varies across states)
Contributions Paid By the Employee: OASDI (6.2%, imposed on the first USD 147,000 of wages) + Medicare (1.45% + 0.9% if total wages above USD 200,000 annually)
Competent Organization
Social Security

Return to top

Management of Human Resources

 

Recruitment

Method of Recruitment
The recruitment process takes place more and more via Internet. Selection is made on the basis of a job interview.
Recruitment Agencies
There are three types: employment agency, executive recruitment, temporary staffing firm.
Recruitment Websites
American Staffing Association
Monster
Career Builder
LinkedIn
 

The Contract

Type of Contract
Employment contracts determine if the employee forms part of the regular or non-regular staff. Full time employees form the regular staff. Among the non-regular staff, there are different types of contract: part-time workers, temporary workers and interns.

Breach of Contracts

  • Retirement
It can take several forms: general resignation, resignation for one’s own convenience, resignation by agreement, resignation by employee’s request, voluntary retirement.
  • Dismissals
In a wrongful dismissal context, this can justify an employer in summarily dismissing an employee.
A serious breach allows the other party to repudiate. In a statutory dismissal context, it can make it more difficult to determine who terminates the employment contract (and hence whether there is a dismissal at all).
  • Other Possible Methods
  • employee resignation on the appropriate notice;
  • employee retirement;
  • the expiry of a fixed-term contract; and
  • the completion of the task for which the contract was concluded.
Labour Laws
US Department of Labor
USA Gov
Doing Business: U.S., to obtain a summary of labour regulations that apply to local entreprises
 

Social Partners

Social Dialogue and Involvement of Social Partners
Today most labour unions in the United States are members of one of two larger umbrella organisations: the American Federation of Labour-Congress of Industrial Organisations (AFL-CIO) or the Change to Win Federation, which split from the AFL-CIO in 2005.
Unionisation Rate
Union Membership had been steadily declining in the U.S. since 1983. In 2007, the Department of Labour reported the first increase in union memberships in 25 years and the largest increase since 1979. Most of the recent gains in union membership have been in the service sector, while the number of unionised employees in the manufacturing sector has declined. Most of the gains in the service sector have come in West Coast states, such as California, where union membership is now at 16.7% compared with a national average of about 12.1%.
Unions
Unions.org
Regulation Bodies
Department of Labour
U.S. Bureau of Labour Statistics
 
 

Return to top

Any Comment About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Latest Update: November 2022