Why Set Up a Joint Stock Company in USA


Renowned for her dominant economic and military power, a cultural imprint that covers the world and exciting tourist destinations, the United States of America (USA) is undisputedly the most powerful nation in the world. Being the third largest population in the world, with a total of 50 states, USA has a very large number of global industries that employ millions of people. These stated facts without any doubt, point to the fact that the country is one great choice for setting up a business.

Among the many types of businesses that can be set up in the USA is the Joint Stock Company. This company is one of the frequently used types of companies in the country and this is due to the ease with which one can be set up. Also, its popularity is as a result of the vast amount of advantages and benefits it offers to its owners and shareholders.

One major benefit of a US Joint Stock Company is the large amount of capital and other resources generated from the collective contributions of partners and shareholders. When businesses come together, they afford one another access to their resources and hence, are able to effectively operate without having to spend excessive amounts of capital to obtain them. These shared resources and responsibilities enhance the ability of the business to thrive and continuously succeed.

For a US Joint Stock Company, there is flexibility for the participating companies. A joint venture is a temporary contract between participating companies that dissolves at a specific future date or at the completion of the project. Hence, participating companies do not have to give up control of their businesses to another entity, enabling them to maintain their identity and be able to easily return to their individual business operations upon the completion of the joint venture.

Another benefit of setting up a Joint Stock Company in the USA is that the risks involved in the business are shared. The liabilities of shareholders are limited to their subscribed capital contributions. This way, liabilities are equally divided and no shareholder will incur more loss than the other, with respect to their level of investments in the company. Also, in this type of company, a transaction of shares between two individuals is easy. With this availability of liquidity of the investment, any shareholder can easily convert his shares into money by selling his shares.

A US joint stock company is well equipped to undertake business on a large scale. As a result, it can derive all the advantages of large-scale production which includes cost efficiency and profit maximization. Also, they are able to improve society by creating large-scale employment opportunities, promoting balanced regional development and contributing substantially to the government by way of taxes.

So, are you in need of a business that is very profitable, flexible, sustainable and will be of great positive impact on your society? Then, setting up a Joint Stock Company in the USA is one right step you need to take.