U.S. Cost Comparisonfor Richmond Region, Virginia, USA

INTERNATIONALsTART-upmOdEL

n B-1 Business Visitor – allows for an initial stay of 6 months and can be extended for another 6 months, but is not applicable to the construction industry and payment must come from a foreign business.n H-B1 (Specialty Occupation Workers) – for foreign employees with a bachelor’s degree or equivalent. Initial stay is for up to 3 years with the possibility of an extension.n H-2A and H-2B Temporary Workers – for skilled and unskilled temporary workers, good for 1 year with the possibility of an extension.

Eligible for part-time employment.n H-3 Temporary Trainees – must be enrolled in an acceptable training program and can stay up to 2 years.n L-1A Executive/Manager – employee must be transferring from abroad to the us within the same company and may be opening a new of-fice. Initial stay is for 1 year with the possibility of extensions (maximum 7 years).n L-1B Specialized Knowledge – employee must be transferring from abroad within the same company and may be opening a new of-

fice. Initial stay is for 1 year with the possibility of extensions (maximum 5 years).n O Visa (Outstanding Ability) – for people with an outstanding ability in arts, athletics, science, or business. Can legally stay for 3 years or the duration of the event.n TN – for Canadian and mexican citizens who work in selected fields and industries. Initial stay can last from 1 to 3 years with the possibility of unlimited renewals.

Visa Information & Requirements

America is a big country with over 300 million people and the world’s largest economy. Even though it is one country, it is often described as having six regions, each with different economic, cultural and political features. Executives who must evaluate and compare the start-up and annual operating costs of a new facility have to choose among 50 states, hundreds of cities, and thousands of communities. This publication was developed to help evaluate and compare seven cities in the u.s. to the Richmond Region.

This brochure offers two typical operating cost comparisons for foreign companies entering the U.S. market for the first time. The first com-parison is a ten-person assembly and distribu-tion center in which one employee is foreign, but most are u.s. citizens, while the second comparison is a two-person sales office in which one worker is a foreign employee of the foreign-based company. In each comparison, Richmond is compared to a variety of American cities, both

large and small, that are often considered by foreign companies looking to expand to the u.s.

We understand that numerous factors must be analyzed when deciding where to expand or re-locate your business and this brochure highlights the many advantages that make Richmond one of the best places on the East Coast to do business.

It may not always be the lowest cost location, but Richmond offers a pro-business environment at a moderate cost with a high quality labor force and a unique quality of life. We can demonstrate that the Richmond Region offers many assets to businesses that have located and thrived in our region.

Hello from the Richmond Region!

Assistance Available from the Partnership

n Custom research based on the company’s parameters and data requirements (workforce, business costs, transportation, suppliers, taxes, incentives)n site location assistance and real estate tours

n structured itinerary that in-cludes a community overview n meetings with suppliers and professional service providersn Introductions to government officials and community leaders n public relations services

n Relocation services for com-pany employeesn start-up services such as employee recruitment n Existing business support through the Business First Greater Richmond program

The Greater Richmond partnership, Inc. is the regional economic development group representing the City of Richmond and the Counties of Chester-field, Hanover and Henrico. We offer site location assistance services to domestic and foreign companies planning new or expanded facilities.

VCU Creative Services

PartnershiP servicesOur free and totally confidential services include:

GaP ProGramThis program is designed to assist foreign companies in their transi-tion to the Richmond Region. We will help you identify appropriate service providers for your busi-ness with the expertise necessary to be successful in Richmond.

n Richmond is strategically located at the mid-point of the East Coast, less than 100 miles from Washington, d.C.n Richmond International Airport (RIC) pro-vides about 160 daily flights with connecting flights to destinations worldwide. Washington

dulles International Airport (IAd), one of the nation’s largest international airports, is only 120 miles from Richmond, with nearly 50 non-stop international flights n more than 55% of the nation’s consumers are within 750 miles

n AmTRAK provides passenger rail service with three stations in the metro arean The Richmond Region’s shippers are within 100 miles of the Port of Virginia at Hampton Roads, the 3rd largest container port on the u.s. East Coast

95

295

295

295

64

64

ChesterfieldAirport

76

288

1

73

Henrico

Richmond

Hanover

Chesterfield

James River

Richmond InternationalAi port

HanoverAirport

150

301

H

Ai

895

R R

R

R R

Port ofRichmond

R R

Average commute time is only 25 minutes

UPS & FedEx district hubs are located in the region

Four Interstates converge in the metro area, including 95, 85 & 64

Norfolk Southern & CSX provide rail

freight service

The James River connects Port of Richmond to the

Port of Virginia

Home to 10 Fortune 1000 headquarters & 150+

international firms

Transportation & Infrastructure

Nearly 30 international shipping lines

to 200+ countries

Notes: *The Illinois rate of 9.5% is the sum of a corporate income tax rate of 7% plus a replacement tax of 2.5% ** Percentage of federal gross income with modification

LocationCorporate

Income TaxSales Tax

Personal Income Tax

Right to Work State

Private Sector Union Membership

Richmond, VA 6.0% 5.3% 2.0% to 5.75% Yes 3.1%

Atlanta, GA 6.0% 8.0% 1.0% to 6.0% Yes 3.8%

Boston, MA 8.0% 6.3% 5.3% No 6.8%

Charlotte, NC 6.9% 7.3% 6.0% to 7.75% Yes 1.6%

Chicago, IL 9.5%* 9.8% 5%** No 10.0%

Miami, FL 5.5% 7.0% 0% Yes 2.2%

Los Angeles, CA 9.99% 6.34% 3.07% No 7.8%

Newark, NJ 9.0% 7.0% 1.4% to 8.97% No 8.7%

Tax Rate Comparison

Richmond, VA AtlAntA, GA Boston, mA chARlotte, nc

Start-Up Costs (One Time) Low High Low High Low High Low High

State entrance fee $75 $75 $225 $225 $400 $400 $125 $125

Visa cost (1 person) $325 $2,000 $325 $2,000 $325 $2,000 $325 $2,000

Legal fees

Visa fee (1 person) $3,767 $6,000 $3,767 $6,000 $3,767 $6,000 $3,767 $6,000

Incorporation $650 $2,567 $650 $2,567 $650 $2,567 $650 $2,567

Trademark $2,000 $5,667 $2,000 $5,667 $2,000 $5,667 $2,000 $5,667

Patent search $2,500 $5,000 $2,500 $5,000 $2,500 $5,000 $2,500 $5,000

Equipment (purchased)

Laptop (3) $1,137 $8,397 $1,137 $8,397 $1,137 $8,397 $1,137 $8,397

Printer/copier/scanner/fax $280 $7,090 $280 $7,090 $280 $7,090 $280 $7,090

Office furniture $3,375 $10,340 $3,375 $10,340 $3,375 $10,340 $3,375 $10,340

Office phone (4) $160 $580 $160 $580 $160 $580 $160 $580

Smartphones (3) $300 $1,200 $300 $1,200 $300 $1,200 $300 $1,200

Tablets (2) $400 $1,060 $400 $1,060 $400 $1,060 $400 $1,060

Total Start-Up Costs $14,969 $49,976 $15,119 $50,126 $15,294 $50,301 $15,019 $50,026

Operating Costs (Annual) Annual state registration $25 $50 $50 $50 $125 $125 $20 $25

Salaries

Managing director $54,912 $144,810 $56,992 $146,619 $68,078 $167,294 $66,206 $164,694

Sales manager/Engineer $52,603 $131,123 $59,530 $105,248 $66,872 $118,581 $56,597 $104,312

Executive secretary $34,632 $53,664 $35,568 $56,451 $42,848 $65,291 $35,610 $54,059

Electronic technician $38,813 $64,813 $38,022 $64,522 $44,283 $71,094 $40,394 $61,027

Inspector $23,150 $50,502 $20,592 $40,664 $29,411 $49,317 $21,466 $40,040

Fork lift operator $21,029 $36,254 $22,422 $33,883 $25,563 $40,747 $22,048 $34,798

Electronic assembler $24,898 $35,090 $23,754 $39,790 $25,813 $43,202 $20,426 $34,174

Engine assembler $23,046 $33,488 $22,173 $36,754 $31,678 $53,019 $30,742 $52,686

CNC operator $28,642 $46,093 $25,293 $39,749 $32,323 $50,669 $26,562 $48,277

Lathe operator $26,832 $39,416 $24,066 $36,650 $31,262 $55,349 $33,987 $51,480

Benefits $91,667 $177,236 $91,627 $167,492 $120,236 $215,798 $98,777 $180,108

Workers compensation $138,674 $268,121 $172,216 $314,807 $114,041 $204,679 $289,801 $528,419

Unemployment insurance $1,820 $1,820 $2,490 $2,490 $6,690 $6,690 $4,240 $4,240

Commission/incentives/bonuses * * * * * * * *

Leased space: 900 sq. meters $40,900 $74,400 $33,200 $72,700 $54,900 $103,300 $38,400 $67,400Real estate tax, Building insurance, and Property main-tenance (not always included) * * * * * * * *

Telecommunications

Telephone (4 lines)/Internet $1,620 $4,020 $1,620 $4,020 $1,620 $4,020 $1,620 $4,020

Wireless device plan $2,520 $2,880 $2,520 $2,880 $2,520 $2,880 $2,520 $2,880

Utilities

Electric $14,700 $14,700 $18,204 $18,204 $23,136 $23,136 $13,476 $13,476

Water $243 $397 $391 $647 $320 $534 $177 $295

Sewer $434 $713 $989 $1,643 $415 $691 $321 $535

Solid waste $1,080 $2,160 $1,080 $2,160 $1,080 $2,160 $1,080 $2,160

Other

Office supplies, misc. $3,314 $6,512 $3,314 $6,512 $3,314 $6,512 $3,314 $6,512

Business auto $7,908 $8,758 $7,423 $8,847 $7,294 $9,413 $6,981 $8,907

Financial/accounting services * * * * * * * * Other (travel, marketing/promotion, equipment, property and liability insurance) * * * * * * * *

Total operating costs $633,462 $1,197,020 $663,536 $1,202,782 $733,821 $1,294,501 $814,765 $1,464,524

totAl costs (yeAR 1 only) $648,431 $1,246,996 $678,655 $1,252,908 $749,115 $1,344,802 $829,784 $1,514,550

comparison: Ten-Person Assembly & Distribution Operation

58% of population with some college or higher

Richmond Airport is 2nd most efficient in North America

More than 70 international clubs and organizations

Note: * Costs differ depending on the industry and location.

chicAGo, il miAmi, Fl los AnGeles, cA newARk, nJ

Low High Low High Low High Low High Start-Up Costs (One Time)$150 $150 $70 $70 $100 $100 $125 $125 State entrance fee

$325 $2,000 $325 $2,000 $325 $2,000 $325 $2,000 Visa cost (1 person)

Legal fees:

$3,767 $6,000 $3,767 $6,000 $3,767 $6,000 $3,767 $6,000 Visa fee (1 person)

$650 $2,567 $650 $2,567 $650 $2,567 $650 $2,567 Incorporation

$2,000 $5,667 $2,000 $5,667 $2,000 $5,667 $2,000 $5,667 Trademark

$2,500 $5,000 $2,500 $5,000 $2,500 $5,000 $2,500 $5,000 Patent search

Equipment (purchased)

$1,137 $8,397 $1,137 $8,397 $1,137 $8,397 $1,137 $8,397 Laptop (3)

$280 $7,090 $280 $7,090 $280 $7,090 $280 $7,090 Printer/copier/scanner/fax

$3,375 $10,340 $3,375 $10,340 $3,375 $10,340 $3,375 $10,340 Office furniture

$160 $580 $160 $580 $160 $580 $160 $580 Office phone (4)

$300 $1,200 $300 $1,200 $300 $1,200 $300 $1,200 Smartphones (3)

$400 $1,060 $400 $1,060 $400 $1,060 $400 $1,060 Tablets (2)

$15,044 $50,051 $14,964 $49,971 $14,994 $50,001 $15,019 $50,026 Total Start-Up Costs

Operating Costs (Annual)$75 $75 $150 $150 $25 $25 $50 $50 Annual state registration

Salaries

$51,542 $141,835 $60,278 $150,592 $61,693 $164,258 $84,739 $202,238 Managing director

$57,470 $112,549 $73,466 $174,283 $65,520 $110,698 $63,502 $124,842 Sales manager/Engineer

$32,427 $58,594 $31,574 $50,648 $38,418 $65,333 $47,154 $66,997 Executive secretary

$35,901 $65,978 $42,474 $65,603 $41,829 $76,939 $31,283 $64,917 Electronic technician

$21,341 $43,014 $19,427 $39,645 $22,610 $44,533 $24,835 $45,136 Inspector

$21,050 $34,258 $21,424 $35,880 $22,838 $49,358 $22,838 $41,787 Fork lift operator

$21,486 $39,978 $21,154 $39,624 $18,658 $36,234 $20,613 $37,294 Electronic assembler

$28,538 $41,101 $27,248 $38,771 $29,890 $43,451 $26,354 $38,230 Engine assembler

$24,773 $44,138 $20,114 $35,069 $23,920 $43,930 $28,080 $53,768 CNC operator

$29,411 $45,365 $24,773 $51,210 $28,891 $48,870 $24,419 $41,163 Lathe operator

$100,745 $194,938 $95,399 $190,090 $105,217 $203,030 $117,752 $225,657 Benefits

$267,551 $517,701 $201,172 $400,851 $280,285 $540,847 $270,363 $518,116 Workers compensation

$5,860 $5,860 $3,010 $3,010 $3,730 $3,730 $10,230 $10,230 Unemployment insurance

* * * * * * * * Commission/incentives/bonuses

$41,100 $85,900 $59,600 $96,500 $65,600 $110,200 $58,400 $121,600 Leased space: 900 sq. meters

* * * * * * * * Real estate tax, Building insurance, and Property maintenance (not always included)

Telecommunications

$1,620 $4,020 $1,620 $4,020 $1,620 $4,020 $1,620 $4,020 Telephone (4 lines)/Internet

$2,520 $2,880 $2,520 $2,880 $2,520 $2,880 $2,520 $2,880 Wireless device plan

Utilities

$17,436 $17,436 $14,184 $14,184 $20,316 $20,316 $22,788 $22,788 Electric

$179 $298 $185 $381 $296 $697 $258 $430 Water

$172 $286 $361 $607 $275 $649 $410 $683 Sewer

$1,080 $2,160 $1,080 $2,160 $1,080 $2,160 $1,080 $2,160 Solid waste

Other

$3,314 $6,512 $3,314 $6,512 $3,314 $6,512 $3,314 $6,512 Office supplies, misc.

$7,274 $9,511 $7,798 $10,013 $7,902 $10,175 $8,011 $10,543 Business auto

* * * * * * * * Financial/accounting services

* * * * * * * * Other (travel, marketing/promotion, equipment, property and liability insurance)

$772,865 $1,474,387 $732,325 $1,412,682 $846,448 $1,588,845 $870,614 $1,642,041 Total operating costs

$787,909 $1,524,438 $747,289 $1,462,653 $861,442 $1,638,846 $885,633 $1,692,067 totAl costs (yeAR 1 only)

#1 state in the number of Tech workers, as a percent of private workers

More than 40 languages spoken in the region

3rd lowest workers’ compensation tax rate in the U.S.

comparison: Ten-Person Assembly & Distribution Operation

For all comparison cities in this brochure, the “low” estimate is the lowest cost a new international business could reasonably expect to pay for each service or good, based on the assumptions and sources for that particular type of expenditure as defined below. conversely, the “high” estimate is the highest cost a new business should expect to pay.

state entrance fees and annual state renewal for both start-ups are from individual state departments as of Sept. 2013. The ten-person scenario is based on a non-stock foreign corporation and the two-person scenario is based on the establishment of an LLC.

Visa costs are based on fees necessary to attain an L-1 visa. The “low” cost is the standard fee that is charged while the “high” cost is for expedited service.

legal fees are an average of estimates from Michael H. Gladstone of McCandlish and Holton, PC, Patrick Gottschalk of Williams Mullen, and Ben English of Hirschler Fleischer. Fees represent a range for the business start-up costs incurred for legal services. Legal costs are based on the estimates for Richmond, Va. Generally, legal fees may differ depending on the size of the firm and the metro area. Trademark fee includes the cost of the federal filing fee (covers all 50

states) as well as attorney fees.

equipment costs for the laptop, multifunction printer and other of-fice equipment are based on figures from www.officedepot.com, Oct. 2013, except for the laptop “high” which comes from www.apple.com.

Annual state registration: For the ten-person cost comparison the required annual fees for “low” cost are for a foreign non-stock corpo-ration and a foreign stock corporation for “high.” For the two-person cost comparison the costs are for a Limited Liability Company, which did not differentiate between foreign and domestic corporations, so the costs were the same for “low” and “high.”

salary data for both cost comparisons are from the U.S. Department of Labor, Foreign Labor Certification Data Center, online Wage Li-brary at www.flcdatacenter.com for July 2013 to June 2014. “Low” cost estimates are for Level 1 or entry level; “high” cost estimates are for Level 4 or fully competent.

Benefits are calculated as a percentage of total wages for divisions of the Northeastern, Midwestern, Southern, and Western regions of the United States. The “low” cost was determined by using the regional benefits multiplier with entry level wages (Level 1) and the “high” cost was determined by using the regional benefits multiplier with fully competent wages (Level 4). Source: U.S. Bureau of Labor Statistics, June 2013 Release Table, 7, http://www.bls.gov/news.re-

lease/ecec.t07.htm.

workers compensation costs were based on estimates from the Oregon Department of Consumer and Business Services. In the ten-person scenario, the workers compensation rates were calculated by multiplying the combined salaries for all ten employees by the premium rate for an outside salesperson. In the two-person scenario, the workers compensation rates were calculated by multiplying the salary for the sales manager by the premium rate for the outside salesperson and managing director by the clerical office rate.

Unemployment insurance costs are based on 2012 data from the Virginia Economic Development Partnership’s cost comparison tool which can be found at http://virginiascan.yesvirginia.org/compare/compareva.aspx. The costs are estimates of the annual cost for un-employment insurance per employee.

leased space prices for the ten-person comparison are based on a 900 sq. meters/10,000 sq. ft. industrial space in general warehouse/distribution spaces (“low” estimate) and research and development/flex spaces (“high” estimate) in each metro area from Marketbeat In-dustrial Snapshot, United States, Q2 2013 by Cushman & Wakefield. Costs for Los Angeles are for the Greater Los Angeles area. “Low” cost for Newark is for “New Jersey – Northern” and the “high” cost is based on the average price of available spaces listed on www.loopnet.com. The “high” cost for Boston is from the Newmark Grubb

Assumptions/Sources

Richmond, VA AtlAntA, GA Boston, mA chARlotte, nc

Start-Up Costs (One Time) Low High Low High Low High Low High

State entrance fee $100 $100 $225 $225 $500 $520 $125 $125

Visa cost (1 person) $325 $2,000 $325 $2,000 $325 $2,000 $325 $2,000

Legal fees

Visa fee (1 person) $3,767 $6,000 $3,767 $6,000 $3,767 $6,000 $3,767 $6,000

Incorporation $650 $2,567 $650 $2,567 $650 $2,567 $650 $2,567

Trademark $2,000 $5,667 $2,000 $5,667 $2,000 $5,667 $2,000 $5,667

Patent search $2,500 $5,000 $2,500 $5,000 $2,500 $5,000 $2,500 $5,000

Equipment (purchased)

Laptop $379 $2,799 $379 $2,799 $379 $2,799 $379 $2,799

Printer/copier/scanner/fax $280 $7,090 $280 $7,090 $280 $7,090 $280 $7,090

Office phone (2) $80 $340 $80 $340 $80 $340 $80 $340

Smartphones (2) $200 $800 $200 $800 $200 $800 $200 $800

Tablets (1) $200 $530 $200 $530 $200 $530 $200 $530

Total start-up costs $10,481 $32,893 $10,606 $33,018 $10,881 $33,313 $10,506 $32,918

Operating Costs (Annual) Annual state registration $50 $50 $50 $50 $500 $500 $200 $200

Salaries

Managing director $54,912 $144,810 $56,992 $146,619 $68,078 $167,294 $66,206 $164,694

Sales manager/Engineer $52,603 $131,123 $59,530 $105,248 $66,872 $118,581 $56,597 $104,312

Benefits $29,997 $76,985 $32,510 $70,271 $40,755 $86,334 $34,262 $75,053

Workers compensation $26,537 $68,767 $38,845 $87,478 $23,671 $52,220 $63,313 $144,000

Unemployment insurance $364 $364 $498 $498 $1,338 $1,338 $848 $848

Commission/incentives/bonuses * * * * * * * *

Office suite

Rent $3,600 $16,800 $4,500 $15,576 $9,600 $34,800 $3,600 $19,500

Furniture included included included included included included included included

Receptionist included included included included included included included included

Telecommunications/internet

Telephone (2 lines)/internet included included included included included included included included

Long distance * * * * * * * *

Wireless device plan $810 $1,170 $810 $1,170 $810 $1,170 $810 $1,170

Other

Office supplies, misc. $663 $1,303 $663 $1,303 $663 $1,303 $663 $1,303

Business auto $7,908 $8,758 $7,423 $8,847 $7,294 $9,413 $6,981 $8,907

Financial/accounting services * * * * * * * * Other (travel, marketing/promotion, equipment, property and liability insurance) * * * * * * * *

Total operating costs $177,444 $450,130 $201,820 $437,060 $219,580 $472,953 $233,480 $519,986

totAl costs (yeAR 1 only) $187,925 $483,023 $212,426 $470,078 $230,461 $506,266 $243,986 $552,904

comparison: Two-Person Sales Office

Note: * Costs differ depending on the industry and location.

Knight Frank Boston Industrial Market Report, 2Q 2013. These are asking rental rates for industrial space (triple net basis) excluding real estate tax, building insurance, and common area maintenance. These costs vary by locality and by individual property.

office suite prices for the two-person comparison for Richmond were provided by Advantech (“low” estimate) and Office Suite PLUS (“high” estimate). Costs for all other locations were based on esti-mates from Officelist.com. All locations include an office with furni-ture, receptionist, local phone line, and an Internet connection except for Office Suites PLUS, which charges extra for phone and Internet access. Prices are based on availability of space in Nov. 2013.

telecommunications costs are based on the estimates from the Verizon website in Nov. 2013 for Richmond, but can vary by locality in terms of both pricing and service availability. All services require a two year contract with Verizon. Local phone service and Internet connection for the two-person comparison are included in the office costs. The “low” cost estimates for the ten-person comparison are based on available business bundles of four telephone lines and the cheapest high speed Internet (15 MBPS) while the “high” cost esti-mate is based on getting the fastest available Internet (300 MBPS), and telephone lines. Not all markets have the highest Internet speed available. All telephone lines include local and national long distance.

wireless device plan costs are based on Verizon Wireless’ Share

Everything For Small Business Plan which allows up to 25 devices. All smartphones have a $40 monthly access fee, while tablets have a $10 access fee. Smartphone prices are subject to a two-year con-tract with the “low” estimate being an Iphone 5c and the “high” being an Iphone 5s. Tablets are also subject to a two-year contract with the “low” being a Samsung Galaxy 2 Tab and the High being the iPad with Retina Display. Costs are based on prices for the Richmond Region and may vary by locality as well as by other competitive of-ferings.

electricity costs for the 10-person scenario are based on an average monthly demand of 40 kW and consumption of 14,000 kWh. Average monthly bills for the power company serving each city were obtained from Typical Bills and Average Rates Report, Winter 2013 by Edison Electric Institute.

water and sewer costs are based on a typical consumption of 600 cubic feet per month for “low” and 1000 cubic feet of water per month for “high”. Bills include applicable service charges and taxes. Water and sewer bills are estimated by unit costs provided by each city’s municipal service for the most recent year available.

solid waste costs are estimates for Richmond, Va., from Waste Man-agement and include the cost of both trash and recyclables with weekly pickup. The “low” cost estimate is for a four-yard dumpster while the “high” cost estimate is based on an eight-yard dumpster.

office supplies, misc. are estimates from the Greater Richmond Partnership. Office supply costs are based on the Partnership’s ex-perience.

Business auto costs are based on Edmunds.com’s True Cost to Own (TCO) calculations for a 2013 Ford Fusion sedan. Five-year costs to own a vehicle include seven cost categories: depreciation, insur-ance, financing, taxes and fees, fuel, maintenance and repairs and estimates are based on 15,000 miles of usage each year. The “high” and “low” costs for vehicle operation in metro areas are for the Year 1 and Year 3 respectively.

Finance/accounting services vary by city and are based on hiring a part-time accounting consultant, rather than employing an in house accountant full-time.

other costs will vary based on a company’s specific needs and prac-tices.

tax Rate comparison chart sources by column:

The Corporate Income Tax and the Personal Income Tax data is from the Tax Foundation. Sales tax figures are from sale-tax.com. Right to work data is from the National Right to Work Le-gal Defense Foundation and union membership data from unionstats.com.

chicAGo, il miAmi, Fl los AnGeles, cA newARk, nJ

Low High Low High Low High Low High Start-Up Costs (One Time)$500 $500 $125 $125 $70 $70 $125 $125 State entrance fee

$325 $2,000 $325 $2,000 $325 $2,000 $325 $2,000 Visa cost (1 person)

Legal fees

$3,767 $6,000 $3,767 $6,000 $3,767 $6,000 $3,767 $6,000 Visa fee (1 person)

$650 $2,567 $650 $2,567 $650 $2,567 $650 $2,567 Incorporation

$2,000 $5,667 $2,000 $5,667 $2,000 $5,667 $2,000 $5,667 Trademark

$2,500 $5,000 $2,500 $5,000 $2,500 $5,000 $2,500 $5,000 Patent search

Equipment (purchased)

$379 $2,799 $379 $2,799 $379 $2,799 $379 $2,799 Laptop

$280 $7,090 $280 $7,090 $280 $7,090 $280 $7,090 Printer/copier/scanner/fax

$80 $340 $80 $340 $80 $340 $80 $340 Office phone (2)

$200 $800 $200 $800 $200 $800 $200 $800 Smartphones (2)

$200 $530 $200 $530 $200 $530 $200 $530 Tablets (1)

$10,881 $33,293 $10,506 $32,918 $10,451 $32,863 $10,506 $32,918 Total start-up costs

Operating Costs (Annual)$250 $250 $139 $139 $20 $20 $50 $50 Annual state registration

Salaries

$51,542 $141,835 $60,278 $150,592 $61,693 $164,258 $84,739 $202,238 Managing director

$57,470 $112,549 $73,466 $174,283 $65,520 $110,698 $63,502 $124,842 Sales manager/Engineer

$33,903 $79,113 $37,315 $90,640 $37,782 $81,662 $46,696 $103,030 Benefits

$50,287 $124,246 $46,829 $114,586 $71,048 $156,653 $63,117 $143,690 Workers compensation

$1,172 $1,172 $602 $602 $746 $746 $2,046 $2,046 Unemployment insurance

* * * * * * * * Commission/incentives/bonuses

Office suite

$8,400 $36,000 $8,532 $34,800 $8,400 $39,996 $9,984 $45,996 Rent

included included included included included included included included Furniture

included included included included included included included included Receptionist

Telecommunications/internet

included included included included included included included included Telephone (2 lines)/internet

* * * * * * * * Long distance

$810 $1,170 $810 $1,170 $810 $1,170 $810 $1,170 Wireless device plan

Other

$663 $1,303 $663 $1,303 $663 $1,303 $663 $1,303 Office supplies, misc.

$7,274 $9,511 $7,798 $10,013 $7,902 $10,175 $8,011 $10,543 Business auto

* * * * * * * * Financial/accounting services

* * * * * * * * Other (travel, marketing/promotion, equipment, property and liability insurance)

$211,771 $507,150 $236,431 $578,128 $254,584 $566,681 $279,618 $634,908 Total operating costs

$222,652 $540,443 $246,937 $611,046 $265,035 $599,544 $290,124 $667,826 totAl costs (yeAR 1 only)

comparison: Two-Person Sales Office

Miami

Boston

Richmond

LookinG for more information?

Visit our websites for 17 country-specific brochures, a directory of internationally owned companies and testimonials from successful foreign-based businesses!

n GRpVA.com is the online destination for businesses seeking an expansion or relocation to the Richmond Region. data, maps and more resources are available for download.

n RichmondWorldView.com has information specific to foreign companies seeking embassy, sister-city and international business partners.

virGinia: Best state for Businessn more than 37,000 new jobs and $5.6 billion invested by international firms since 2004n more than 700 internationally owned businesses from 45 countries n The state’s 6% corporate income tax rate has not changed since 1972. It is the 6th lowest in the countryn Right-to-work state with moderate wages, low levels of union-ization, and unemployment and Workers’ Compensation costs among the lowest in the u.s.n Ranks among the top 10 states in labor productivity

metro richmond: center of commerce Richmond is the capital of Virginia, the center of commerce, government and academic endeavors:n All business support services are available with multilingual staff capabilities, including accounting, financial, and legal service providers with international experiencen Home to 10 Fortune 1000 headquartersn Nearly 30 colleges and universities with nearly 80,000 students and more than 14,000 degrees conferred annuallyn The cost of living is close to the u.s. national average and significantly lower than in larger metro areas such as New York and Los Angelesn Richmond metro area is the nation’s 45th largest economy, among 363 metrosn If metro Richmond were a country, it would have the world’s 111th largest economy, slightly larger than Croatia’s

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901 East Byrd St | Suite 801 | Richmond, Virginia 23219 | 804 643 3227 | grpva.com