5 Steps to Starting A U.S. Company as A Foreigner
For many foreign business owners and entrepreneurs, starting or expanding their business to the U.S. is undeniably a smart move. Not only are there numerous tax advantages to benefit from but a business in the U.S. will also have access to U.S. investors, venture capitalist funding and the public market. And while many potential foreign business owners believe obtaining permanent U.S. residency is a requirement for starting a business in the U.S, the truth is they do not. In fact, except for a few differences like setting up a bank account, securing a visa, and international tax regulations, the process of starting a business in the U.S. is nearly the same for both residents and non-residents.
So here’s how to set up a U.S. company as a non-resident:
1. Name Your Company. One of the first things you’ll need to do is determine the name of your business. Not only should you pick a name that reflects your brand identity, but you will also need to ensure that it resonates with the audience in the U.S. An expert business consultant can help you determine if your chosen name is available and ensure that it is properly registered.
2. Determine Your Company Structure. Next you’ll need to decide whether you want to form either a Limited Liability Company (LLC) or a corporation (C). An expert business consultant can help you make this crucial decision by looking at the short and long-term goals you will have for your company.
3. Choose a U.S. State to Incorporate Your Company. Companies in the U.S. are incorporated at the state level instead of the federal level, so it is important that you consult an expert business consultant who is familiar with this process. While you are not required to incorporate in the state where your business operates, some states may offer better tax incentives and subsidies.
4. Register Business. Corporate entities are usually required to register with the Division of Corporations, depending on the U.S. state. This process will involve information about your business, business ownership, and tax registration.
5. Obtain an EIN. The next step will be to obtain an Employer Identification Number. An EIN is needed to open a bank account, secure a business license, obtain loans, hire employees, and pay taxes. While an EIN can be obtained from the IRS for free, the forms and procedure can be confusing. Working with an expert business consultant for this process can help you avoid wasting time and money.
While starting or expanding a business in the U.S. may not be the easiest process, it is a great opportunity for foreign business owners and entrepreneurs to obtain permanent U.S. residency by making substantial financial contributions to the U.S. economy. If you would like to learn more about how to start a business in the U.S, contact us today.
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