Opening a Business in the U.S. for Noncitizens

For people looking to start a business in a foreign country, the United States is one of the most foreign-friendly countries to form a company. The U.S. has a strong economy and is a top leader in global investments and business, making the country a promising one for entrepreneurial endeavors.

Though purchasing or forming a business in the United States of America can be easy, it does come with its challenges. Firstly, you might have issues with the laws for working and living that you will need to know and the types of business you can open.

Let’s look at what you need to know about opening or owning a business in the U.S. It would include the types of USA-based enterprises you can form and the legal guidelines you should follow.

Let’s begin.

Choosing your business structure

The first step to forming your business as a foreign business owner is to select your business structure. As an immigrant, you have two choices; a limited liability company (LLC) or a C-corporation.

For instance, if you intend to open a business in Glendale and aren’t sure of the proper business structure, then Glendale-based immigration attorneys can help you.

These two business structures have advantages for foreign business owners because you can run them outside the United States and don’t need citizenship or residency.

So let’s take a look at these two structures:

●      Limited Liability Company (LLC)

This is a formal legal structure that separates company debts from personal assets. An LLC’s significant benefit is that it protects from liability during litigation.

In addition, business owners under this business structure don’t need to use their assets to cover company debts. This is one of the reasons small businesses opt for this business structure.

●      C-Corporation

This business structure clearly defines compliance, governance, and taxation rules. Generally, C-corporation is used for significant businesses that want to attract venture capital.

Registering your business

Location is a primary element of registering your business in the United States as a non-citizen. Each state has different legislation, which could affect your tax, profits, and business conduct.

A vital factor in determining how to open your business in the U.S. for non-citizens is executive decisions, anonymity, and taxes. Delaware and Florida are among the most desirable states for foreign and state investors.

This is because they have several advantages for companies compared to other states. For example, Delaware has flexible corporate laws that protect directors and shareholders. They also offer good tax incentives and foreign investors’ friendly rules.

Delaware also doesn’t require a local bank account or physical address. Additionally, because of their tax incentives, tax advisors are very familiar with their welcoming tax rules, so most are not too bothered to learn the extensive laws of other states.

Documents needed to open a business in the U.S.

As a non-citizen, you don’t necessarily need to be in the U.S. to form a business. You also don’t need an American visa. Starting a business isn’t the same as being employed in it. You will only need a visa when you start working in your company.

Let’s find out the documents that you need to start your business:

●      The company’s address

Getting a physical business address is the first thing you should do. This is the place where your business headquarters is located.

If you don’t have access to a physical address, you can also use Globalfy’s Virtual Address service. This will let you register and use their mailroom as your business address, thereby allowing you to get your mail sent to your home country.

●      Employer identification number

You will also need to apply for an employer identification number from the IRS. You can apply online with an Individual Taxpayer Identification Number or a Social Security Number.

The process might take longer if you don’t have any of these documents. You will also have to fill out the SS-4 form and wait for some weeks so it can be processed.

●      A business bank account

After the above, you will also need a U.S. business bank account. This helps in managing your money. You need your passport, EIN approbation letter, and business incorporation documents to get your business bank account. This process can be done online.

Investors green card

As a foreign investor, you can gain U.S. citizenship by investing significant capital into the economy. For instance, if you intend to open a business and want to qualify for an EB-5 immigrant investor status, you must invest at least $1,050,000 in a new business company.

In addition, you must also create full-time employment for at least ten persons. However, Congress reduced this amount to $800,000 if you invest in a targeted or rural area.

Qualifying for a green card by investment in the U.S. economy though complicated, is rewarding. There are no quota rules, long wait times, or skill requirements for this visa. It even has an added advantage of giving a green card to spouses and children under age 21.

Also, there are other types of visas forming a business as an immigrant can get you. The key is to know which visa best suits you. If you aren’t sure which visa suits your needs, immigration attorneys can help you.

Below are some standard green card options business-minded immigrants have:

●      E-1 treaty trader visa

This visa lets nationals of the Treaty of Trade and Commerce work in the United States to engage in international trade.

●      E-2 treaty investor visa

This investor visa is available for immigrant investors who want to work and live in the U.S. To qualify for this visa, you must invest a substantial sum into a startup or business you want.

This means you want to create or purchase your business inside the U.S. This visa usually lasts between three to five years. It is also only given to people from countries under the Treaty of Trade and Commerce.

Conclusion

The U.S. economy values small businesses and emphasizes immigrant-owned enterprises’ pivotal role. A company owned by non-US citizens creates jobs, unites communities, and generates significant economic activities.

However, like every other small business owner, immigrant business owners face challenges such as funding, expanding, and managing operations. In addition, they might also encounter issues like navigating legal concerns, immigration status, difficulty accessing credit, and language barriers.

So, before opening a business, it is recommended that non-citizens consult with an experienced and professional immigration lawyer to put them through every necessary legal concern.