Starting a business in the United States is the dream of many Brazilians. The American market is stable, promising, and full of opportunities. However, many of these entrepreneurs make mistakes that could be avoided with a little more guidance and planning. In this article, we’ll cover the main mistakes Brazilian entrepreneurs make in the U.S. and how you can avoid them to start your business safely and professionally.
1. Opening a company in the wrong state
Many Brazilians choose a state to register their company just because they heard it’s “cheaper” or “easier.” But each state has its own tax rules, requirements, and annual fees. Delaware and Florida, for example, are popular, but not ideal if you operate elsewhere.
Common mistake: registering the company in Florida while providing services in Massachusetts, without local registration.
How to avoid it: choose the state where you will actually operate. If you serve multiple states, analyze which one offers the best cost-benefit and be prepared to register your business wherever you operate.
2. Not separating personal and business finances
One of the most common mistakes Brazilian entrepreneurs make in the U.S. is mixing business money with personal finances. This not only confuses financial control but can also compromise the legal protection of your company (especially if it’s an LLC).
How to avoid it: open a business bank account from the start. Use financial control apps and set a monthly salary (pro-labore) for yourself.
3. Relying only on Zelle, Cash App, or informal payments
Many Brazilian entrepreneurs in the U.S. use Zelle or Cash App as their main payment method. Although popular, these tools don’t generate clear tax records or support good accounting practices.
Consequences: difficulty proving income, risk during tax audits, and trouble obtaining credit in the future.
How to avoid it: use business accounts with invoices and receipts. Platforms like QuickBooks, Wave, or Square help keep everything organized and legal.
4. Working without contracts
A major mistake is relying solely on verbal agreements. This applies to both suppliers and clients. Without a contract, it’s hard to guarantee payments, responsibilities, and deadlines.
How to avoid it: have simple contract templates adapted to your type of service. Use platforms like DocuSign or HelloSign for digital signatures, and consult a professional to adjust specific clauses.
5. Not issuing invoices, receipts, or proof of payment
Lack of documentation is one of the biggest mistakes Brazilian entrepreneurs make in the U.S.. Without proof of income and expenses, you may have problems with the IRS, and your business growth will be limited.
How to avoid it: create a standard invoice template with your logo, service description, date, and amount. Always send it to the client and keep a backup. Many systems generate and manage this automatically.
6. Ignoring quarterly taxes and legal obligations
Unlike Brazil, in the U.S., you may be required to pay taxes quarterly. There are also annual fees, license renewals, and mandatory reports, even if you made no profit.
Common mistake: opening a company and never filing anything again.
How to avoid it: have an accountant or business consultant like LS Business to remind and guide you on deadlines and amounts. Set calendar alerts and keep your documents organized.
7. Trusting only friends who “have done it”
Getting advice from someone who’s been through the process is helpful, but each case is different. What worked for a friend may be inefficient or even illegal for you. Many Brazilians make mistakes by following “WhatsApp tips” without professional confirmation.
How to avoid it: seek information from reliable sources, certified professionals, and experienced companies like LS Business Management, which has already helped dozens of immigrants.
Conclusion
Making mistakes in the beginning is common, but continuing to make them due to lack of guidance is a choice. If you want to start or formalize your business in the U.S. safely, avoiding the main mistakes Brazilian entrepreneurs make in the U.S. is the first step.
With planning, organization, and support from experienced professionals, you can grow your business legally, solidly, and with fewer risks. The LS Business Management team is ready to support you on this journey with experience, dedication, and Portuguese-language assistance.
Moreover, building a solid structure from the start helps you stand out from the competition, earn more trust from clients, and grow more easily and sustainably. It’s not just about avoiding problems, but creating the right foundation to expand.
Want to avoid mistakes and build a business future in the U.S.? Contact us now or start a conversation via WhatsApp.
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