Business risks in the USA are easy to avoid

This article is part 9 of our series on the key facts about entering the US market. Here we look at the business uncertainties that make many international companies hesitate before expanding to the USA. We check these risks against reality and help you judge how big they really are.

Talk to other entrepreneurs about doing business in the USA and sooner or later someone will bring up the supposed financial risks. Here we explain exactly what you need to watch out for.

1Business risks in the USA: the facts

Surveys by Forbes and Financial Management asked executives to name the biggest business risks. Their main worries were:

• excessive market regulation
• dealing with cyber threats
• data protection and data security

American and foreign companies usually share similar concerns, and government regulation always comes up.

But as we explained in article no. 4 of the series, the federal government has been actively cutting back its body of regulation for years; since Executive Order 14192 of January 31, 2025, a ten-for-one rule applies. So European businesses should never let these regulations stop them from entering the US market. You can reduce these risks considerably with a solid knowledge of the relevant federal and state regulations. For that kind of analysis, your best move is to talk to an attorney or advisor who knows US regulations well.

The same goes for data protection rules. Unlike in Europe, data protection in the US is not governed by one general, comprehensive law. Instead, it mostly comes down to industry-specific rules and companies' own voluntary commitments. Broadly speaking, US rules are far less strict than European ones.

Cyber threats are not a US phenomenon; they exist worldwide. The more of your business happens online, the more closely you should follow basic ground rules, and training and advice are available if you need them. Key steps that usually take little effort are an effective, ideally automated backup system, regular (security) updates for all systems and, where needed, encryption of sensitive information. Employees and anyone with access to company data should be properly trained, and passwords or other safeguards should never be bypassed for convenience.

So yes, there are potential business risks, but most of these concerns are by no means limited to the USA. They apply just as much in your home country (or wherever non-US companies do business).

2What the risks mean for your US business

As the earlier articles in this series show, risks for international companies can usually be contained and, with careful planning before your US expansion and advice from qualified professionals, often avoided entirely. When it comes to ordinary business risks, your business faces much the same ones wherever it operates. There are no disadvantages unique to the US.

Here are all ten facts about entering the US market:

No. 1: "Entering the US market costs less than you think."

No. 2: "Forming a company in the USA is easy and fast."

No. 3: "There are many ways to enter the market."

No. 4: "Government rules for forming a company are simpler than many think."

No. 5: "The USA offers excellent intellectual property protection."

No. 6: "The USA offers a reliable legal framework for small and medium-sized businesses."

No. 7: "With the right strategy, you'll quickly find qualified staff for your US venture"

No. 8: "You are well protected against employee lawsuits, too."

No. 9: "Business risks in the USA are easy to avoid."

No. 10: "Good legal and financial services in the USA aren't expensive."

In short

• Executives name excessive market regulation, cyber threats, and data protection and security as the biggest business risks.
• The federal government is cutting back regulation; since Executive Order 14192 of January 31, 2025, a ten-for-one rule applies.
• US data protection is not governed comprehensively but mostly through industry-specific rules and voluntary commitments, and it is less strict overall than in Europe.
• Backups, regular updates, encryption and trained staff protect against cyber threats, anywhere in the world.
• Most risks are not specifically American and can be contained with planning and good advice.

How we help you

• US market entrySubsidiary, staff, taxes: your start in the US market.
• Form a CorporationThe US corporation (Inc) for growth, investors and your visa.
• Tax structureA clean structure between parent company and US subsidiary, or between you and your US company, coordinated with your accountant.
• Company formation consultationEntity type, state and tax consequences, before you commit.