The American dream of owning a business in the United States is not limited to Americans. A small business can be started in the United States without citizenship or residency requirements. Naturally, there are rules and procedures that non-citizens must follow in order for their dream to become a reality. Overall, the steps are similar to those required of a U.S. citizen when starting a business in USA as a foreigner. In this article, our DNBC Financial Group’s experts will help you understand thoroughly.
The complete guide for starting a business in USA as a foreigner – DNBC Financial Group
How to start a business in USA for foreigners
Although it can be difficult to start a business in the United States as a foreigner, the country makes it simple to do so.
Choose the company structure
There are several constraints on the kind of business structures that overseas entrepreneurs can use for their US enterprises. Nonresidents, for example, are not permitted to form an S Corporation since each shareholder must be a United States citizen or permanent resident alien.
C Corporation and Limited Liability Company (LLC) business entity forms are commonly used because they provide personal liability protection for business owners as well as certain tax flexibility. An entrepreneur must complete business registration documents in the state(s) where the business will be operated in order to form either entity.
Non-citizen business owners, like any other, must pay income taxes to both the IRS and the state. Other federal, state, and local taxes and fees may apply.
Choose a state to register
The best location to register is the one where you will be doing business. However, if you are an online firm or do business in multiple states, you may want to explore registering in a state with reduced tax responsibilities. Nevada and Delaware are two well-known low-cost states for entrepreneurs.
Delaware is especially attractive because of its corporate law, which gives strong protections to shareholders and directors. A physical address or a bank account is also not required for incorporation in Delaware. Indeed, Delaware is so accommodating to foreign entrepreneurs that its corporation law website is available in a variety of languages.
Get an employer identification number
An Employer Identification Number (EIN) is required not only to hire employees, but also to open a bank account, pay taxes, and, in many cases, obtain a business license. Avoid the various online firms with official-sounding web domains that charge for this service by applying for the EIN for free directly from the IRS.
Steps to run a company in the USA
The registration process varies slightly by state and is somewhat based on whether you’re founding an LLC or a C-Corp. Here are some of the fundamental steps and prerequisites:
Choose a unique name
You must select a unique name that has not previously been registered in the United States. You can search the US Patent and Trademark Office’s trademark database.
Register with government agencies
You will almost certainly need to register with any state where you intend to conduct business. This includes;
- Being physically present in the state
- In-person client meetings are held often in the state.
- That state accounts for a sizable portion of your company’s income.
- If you have any workers who work in the state
Get a registered agent
A registered agent is a firm or someone who receives official paperwork and legal documents on your behalf.
Submit an Application for Foreign Qualification
You’ll need to apply for a foreign qualification in any additional states where you do business.
State documentation and fees must be filed
The documentation you’ll require will vary depending on the nature of your firm and where you register it. Typically, you’ll need the following information:
- Company name
- Business address
- Directors, ownership, and management structure
- Information about the registered agent
- Share count and value (for corporations)
The overall cost of registering your business in the United States is often less than $300, but this can vary depending on the state and business structure.
Register with local government agencies
For LLC, corporation, partnership, or nonprofit corporation company types, you may need to apply for county or city licenses and permissions. If you use a fictitious or trade name, you may be required to register it with your county or city.
Open a Business payment account
If you do not already have a business account, you must open one in order to conduct business financial transactions in the United States, particularly for LLC and corporation types. There are numerous options to choose from, however, it is worthwhile to do some research because certain banks/providers may be significantly less expensive than others for the same types of services. If you’re searching for a more flexible and quick-to-open business account, DNBC International Business Account is a great option. It can help you save time and money if you are starting a business in USA as a foreigner. You can open an international business account online without having to stand in line or schedule an appointment. DNBC is a secure and stress-free payment option. We allow you to transfer money with competitive foreign exchange rates.
About DNBC Financial Group
DNBC Financial Group is an international financial institution that offers corporate and individual customers an intelligent digital payment system, a convenient payment platform, and an uncomplicated online money transfer receipt service worldwide.
The mission of DNBC Financial Group is to streamline global financial payments, smooth day-to-day transactions, and ensure that customers always meet their payment goals.