Are you looking to start a new business in the US? You probably have a lot of questions about where to start.
There are clear options for foreigners who want to start a business in the US, and tools are available to help you through the process.
What kinds of businesses can someone who doesn’t live in the US open there?
Non-citizens or residents of other countries can now set up two types of corporations in the United States:
• Limited Responsibility Business (LLC)
• A corporation, or C-Corp
S-corporations are usually the best choice for foreign owners. It’s important to remember that these benefits are only available to citizens and regular residents, no matter how appealing.
Some apparent benefits could come from forming an LLC. The one that stands out the most is limited duty. This protects members’ assets from being used to pay for business choices or actions if the company goes bankrupt or is sued.
Still, the C-Corp company form is a popular choice for new businesses. One of the perks of setting up as such is that you can grow by offering unlimited stock. This trait is often appealing to investors.
Do I need a visa to start a business in the US?
You can legally run an LLC from outside of the US, but you might only be able to do so in the US if you have a valid work visa and You don’t need a visa to start and run an LLC from outside the US. If you want to run the LLC from inside the US, you might need a valid work visa.
Most of the time, you will need a work visa to be a cop and do your job in the United States. While in the United States, you can only work for your company or LLC with a legal work visa.
Many people choose to get a business in the US, even though they still need the right to live there.
This is excellent news: you can choose from some visas.
Non-residents who want to start a business in the United States have other visa options.
The most popular one for business owners is the E-2 visa, which is also the closest thing the US has to a “start-up visa.” To be qualified for one, you must meet these three requirements:
1. The country of your citizenship must be a party to a treaty of friendship, trade, or navigation with the United States of America. The Treaty Countries page of the Department of State has an exhaustive list of qualifying countries.
2. You have to have made a sizable financial commitment to a US company, or you have to be looking to create one. You don’t currently need to invest a certain amount of money, but it should be sufficient to buy or start a new business, as well as to manage and grow it. If the investment fails, the capital must be exposed to a partial or entire loss. You must show that the monies were not acquired via any illicit means, either directly or indirectly.
3. It must be proven that you own a controlling interest in your company—50% or more.
4. Your goal for entering the country must be to create and run the investment business.
Getting your Green Card is challenging by the E-2. A two-year maximum initial stay will be given to qualified treaty investors and personnel. You can ask for up to two-year extensions of your stay. An E-2 non-immigrant is eligible for an endless number of extensions. But when the status ends or is revoked, you have to continue to plan to leave the country.
Alternatives to E-2 Visas
You can look at several other cards if the E-2 isn’t the best fit for you. A complete inventory of them is available in the US Citizen and Immigration Service’s Entrepreneur Visa Guide; nevertheless, a few of the most popular ones are as follows:
• Students in the US with an active F-1 Visa who are starting a business closely related to their major in college are qualified to apply for the F-1 OPT (Optional Practical Training) Visa.
• The H-1B Specialty Occupation Visa, which necessitates that you work in a field where employment usually requires a relevant bachelor’s degree or higher.
• Those who can show “extraordinary ability” in the arts, sciences, business, education, or sports are eligible to apply for the O-1A Exceptional Talent and Achievement Visa. This frequently implies that you’d need to keep consistent national or worldwide prominence in your industry.
Your eligibility for a Green Card by Investment, which would grant you permanent residency in the United States, may also depend on your ability to invest $1,050,000 (or $800,000 in an infrastructure project or targeted employment area) in a new commercial enterprise that will boost the American economy and create at least ten full-time jobs for qualified employees.
In which state ought I to start my company?
The state in which your business will be performed is the ideal one to register in. If your company works online or in multiple locations, consider writing in a state where taxes are less expensive.
Nevada and Delaware are two well-known places that are affordable for business owners. Delaware is incredibly well-liked since its business law offers substantial safeguards to directors and stockholders.
How does one go about starting a foreign company?
Depending on whether you’re founding an LLC or a C-Corp, the procedure for foreign enterprises to register their companies in the US varies slightly from state to state. Still, Delaware’s system serves as a fair example of the basic steps and specifications:
1. A distinctive name that has yet to be registered in the US must be picked. The US Patent and Trademark Office provides a searchable trademark database.
2. The firm’s legal documentation must be ready for pickup by you or a designated company agent.
3. You will finish a certificate of incorporation after deciding on your name and agent. The name of the company, your address or that of your firm’s agent, the authorized share value, and the incorporator’s name and legal address are all mentioned in this document. Eighty-nine dollars is the original filing fee for the certificate of incorporation; the charge is prorated according to the number of shares issued or capital raised.
4. The next step is to pay your franchise tax and file an incorporation report.
5. Lastly, an employment identification number, or EIN, is needed. You may start a bank account, pay taxes, recruit staff, and get any licenses you require with the EIN. Applying online for a free EIN from the IRS is possible. That being said, you or the chief executive officer of the business must already hold a Taxpayer Identification Number. In that case, you can still receive an EIN; however, you will have to apply via mail or fax.
Where else can I get advice on how to start a foreign company in the United States?
For more detailed information on how non-residents and non-citizens can launch a business in the US, the US Small Business Administration is a great resource.
It would also be a good idea to familiarize yourself with corporation law in the state where you plan to register. Cornell University contains a table of several state laws about corporations, albeit you might have to look these up individually.
For those seeking more in-depth information, the US Government’s Business USA is a centralized, official platform where companies may receive data and services to support their expansion.
