Steps to Starting a Business in the U.S. as a Foreign National

How to Start a Business in the U.S. as an Immigrant

Are you looking to start a business in the U.S? If you are a foreign national who is interested in accessing the U.S.’s open market, business-friendly economy and high quality of life, you are not alone. The U.S. is consistently ranked among the best internationally for its overall competitiveness for a reason. With the right resources and knowledge, you can have the success you’ve always envisioned.

While it is highly advised that you get assistance from someone who is more knowledgeable and experienced in starting or expanding a business in the U.S., the following steps can assist you in becoming familiarized with what to expect.

Here are 5 steps, straight from the U.S. Small Business Administration, that you’ll need to complete in order to start a business in the U.S. as a foreign national:

Structure Your U.S. Business.

One of the important steps in starting a business in the U.S. is determining how to structure your business. Your chosen entity will determine liability, taxation, financing and record-keeping. You can choose to operate your business as a sole proprietorship, LLC, Corporation, partnership, or S Corporation.

Obtain a U.S. Business Bank Account.

To open a U.S. business bank account as a foreign national, you’ll need a tax identification number and a government-issued document bearing a photograph. You might also need to produce proof of incorporation, U.S. business address, and more.

Understand U.S. Taxes.

All foreign nationals generating business income in the U.S. must file and pay both state and federal taxes. According to the SBA, you will be taxed at regular U.S. corporate rates but only on income from U.S. sources that is connected with that business, and a different percentage on income not connected with that business.

Create an Online Retail Presence.

One of the best ways you can grow your business and your brand is by creating an online retail presence. U.S. consumers are typically more likely to purchase from a U.S. ecommerce site than one that’s based overseas.

Acquire Financing.

Having access to capital is important all small business growth, especially if you want to achieve success in the U.S. market. While foreign nationals can certainly acquire capital through financing, banks are typically more stringent on their eligibility requirements.

Expanding your business internationally is no easy task; for the U.S. market, it requires patience and an in-depth knowledge of these steps. If you are interested in expanding your business to the U.S. and would like assistance, ReachOut Business Solutions can offer you and your business our 20+ plus years of experience in assisting businesses from all over the world establish and significantly grow in the U.S.