Taxes are one of the most important topics for anyone starting a new life or business in the United States. The American tax system differs significantly from most other countries, and understanding its core principles helps you avoid penalties and unnecessary expenses.

Taxes for Individuals

All U.S. tax residents are required to report their worldwide income, regardless of whether it was earned in the United States or abroad.
If you reside in the country for more than 183 days a year, you are automatically considered a tax resident.

Main types of taxes:

• Federal income tax: ranges from 10% to 37%, depending on income.

• State income tax: applies only in certain states (for example, there is none in Florida or Texas).

• Social contributions (Social Security and Medicare): about 7.65% for employees.

Tip: In your first year, it’s highly recommended to work with a Certified Public Accountant (CPA) who can help you file correctly and explain which expenses you can legally deduct.

Taxes for Business Owners

If you are starting a business under E-2, L-1, or EB-5 visas, it’s crucial to choose the right business structure (LLC, Corporation, or S-Corp).
Your choice will directly affect how and how much you pay in taxes.

Main types of business taxes:

• Corporate Income Tax: federal tax on company profits (21%).

• State Business Tax: depends on the state of registration.

• Sales Tax: similar to VAT, applied to the sale of goods and services.

• Payroll Tax: taxes paid on employee wages.

Many business owners optimize taxes by distributing income and expenses across states with lower rates.

Practical Tips

• Open a separate business bank account to simplify accounting.

• Keep all receipts and expense documentation — many can be used for deductions.

• Don’t delay tax filing — late submissions can lead to penalties.

• Consult a tax advisor, especially if you earn income outside the U.S.

Conclusion

The U.S. tax system is transparent but requires attention to detail. With proper planning and professional support, you can not only avoid costly mistakes but also legally reduce your tax burden and keep your finances on track from day one.