How to Start a Business in the USA as a Non-Citizen: A Complete 2025 Guide

The United States remains one of the most sought-after countries for entrepreneurs worldwide due to its mature markets, transparent legal system, and strong consumer spending. While many think that U.S. citizenship is required to launch a business, the reality is quite the opposite. Non-citizens, including foreign nationals and international entrepreneurs, can legally establish and operate a company in the U.S. without holding a green card or visa.

However, starting a business as a non-citizen requires a deep understanding of U.S. regulations, entity structures, tax obligations, and legal processes. This guide provides a detailed and balanced overview — presented in an easy-to-follow format — to help non-U.S. citizens successfully navigate business formation and expansion in the United States.

Why the U.S. is a Global Magnet for Entrepreneurs

The U.S. has long held its position as a leader in entrepreneurship for good reason. With over 330 million consumers and the largest GDP in the world, businesses gain access to capital markets, innovation hubs, and a regulatory system that supports commercial growth. Additionally, U.S. companies often enjoy enhanced credibility internationally, making it easier to scale into other markets.

For foreign entrepreneurs, the benefits go beyond market access. The country offers consistent tax laws, extensive investor networks, and a predictable court system. Whether you're a startup founder, small business owner, or online seller, setting up your business in the U.S. can be a powerful strategic move.

Are Non-Citizens Legally Allowed to Start a Business in the U.S.?

Yes. U.S. law does not prevent non-citizens from owning or forming businesses in the country. You can legally register a company, own 100% of the shares, and operate it remotely or through authorized representatives within the U.S. However, it's essential to understand that while you can own a business, you cannot work or manage it on-site without a valid visa.

This distinction is crucial. Operating from abroad is permissible, but working physically in the U.S. requires appropriate immigration status.

Legal Business Structures Available to Non-Citizens

Choosing the correct legal structure is one of the most important decisions you will make. It determines your tax obligations, liability, funding potential, and compliance requirements. Non-citizens typically form either a Limited Liability Company (LLC) or a C-Corporation (C-Corp).

Key Differences Between LLC and C-Corp:

• LLC (Limited Liability Company):

  • Simpler to manage and flexible

  • Income passes through to owners' personal taxes

  • Not ideal for raising capital from investors

• C-Corporation:

  • Separate taxable entity (subject to double taxation)

  • Can issue stock to raise capital

  • Preferred by venture capitalists and angel investors

Your choice depends on your business model. Solo founders or small-scale service providers often benefit from LLCs. Meanwhile, startups with high growth potential lean toward C-Corps.

Best States to Register Your U.S. Company

You can form a company in any of the 50 states, regardless of where your operations are based. However, some states are more business-friendly, especially for foreign owners.

Best States for Foreign Entrepreneurs:

1. Delaware – Business law expertise, high privacy, and corporate court system

2. Wyoming – Low fees, no state income tax, excellent privacy laws

3. Nevada – Tax advantages and minimal compliance requirements

While these states offer general advantages, if your company has a physical office, warehouse, or employees in a specific state, you must register there or as a foreign entity.

How to Register a Business in the U.S. (Step-by-Step)

The registration process is relatively straightforward if you follow a systematic approach. Below are the key steps in setting up your company:

1. Choose Your Business Entity

Decide whether to register an LLC or C-Corp based on your ownership, taxation preference, and growth goals.

2. Select a State

Register in Delaware, Wyoming, or Nevada if you want simplicity, or in the state where your physical operations are based.

3. Hire a Registered Agent

This person or service must have a physical U.S. address and is responsible for receiving government and legal documents.

4. File Formation Documents

Submit your Articles of Incorporation (C-Corp) or Articles of Organization (LLC) with the Secretary of State in your chosen state.

5. Obtain an EIN (Employer Identification Number)

Apply through the IRS to receive your federal tax ID. This is required for bank accounts, licenses, and tax filings.

6. Open a U.S. Business Bank Account

Most banks require physical presence, though services like Mercury and Wise allow remote account setup for foreign owners.

7. Apply for Licenses and Permits

Check state and city-level licensing requirements based on your industry and location.

Getting an EIN Without a Social Security Number

Non-residents often assume they can’t get an EIN (Employer Identification Number) without a U.S. Social Security Number (SSN). That’s not true.

If you do not have an SSN, you can still obtain an EIN by completing Form SS-4 and submitting it via mail or fax to the IRS. In the SSN section, simply write "Foreign" or leave it blank. You may also appoint a third-party designee (usually your lawyer or formation service provider) to apply on your behalf.

The EIN is essential to operate legally in the U.S., especially for tax filing, banking, and payment gateway setup.

Opening a U.S. Bank Account as a Non-Resident

Opening a business bank account can be challenging without visiting the U.S. in person. However, it is possible through:

• Online banks like Mercury and Wise (which accept non-U.S. founders)

• Remote account services offered by registered agents or business lawyers

• Local partnerships, where a U.S.-based individual can help facilitate banking access

Documents typically required include:

• Articles of Incorporation or Organization

• EIN confirmation letter from the IRS

• Valid passport

• Proof of address (either international or U.S., depending on the bank)

Understanding U.S. Tax Obligations for Foreign-Owned Businesses

U.S. tax obligations vary depending on the type of business structure, your country’s tax treaty with the U.S., and whether you have a “permanent establishment” in the country.

Key Tax Considerations:

• LLCs: Profits pass through to owners and may be taxed as U.S.-source income.

• C-Corps: Pay corporate income tax (21%) and potential shareholder taxes.

• Form 5472: Foreign-owned LLCs must file this annually with a pro forma 1120 tax return.

• Sales Tax: Applies to physical goods sold in certain states and must be collected and remitted accordingly.

Hiring an accountant or CPA experienced in international tax law is strongly advised.

Immigration Considerations: Can You Work in the U.S.?

Owning a business in the U.S. does not give you the right to work there. If you plan to manage operations on the ground, you’ll need to apply for a valid visa.

Common U.S. Visas for Entrepreneurs:

1. E-2 Visa – For citizens of treaty countries who make a substantial investment.

2. L-1 Visa – For executives or managers transferring from a foreign branch.

3. O-1 Visa – For individuals with extraordinary skills or achievements.

4. EB-5 Visa – For investors who commit $800,000+ and create jobs for Americans.

Each visa has specific eligibility criteria, so legal consultation is essential.

Post-Formation Compliance and Maintenance

After forming your company, you must ensure ongoing compliance with both state and federal regulations.

Annual Maintenance Includes:

• Filing an annual report or statement of information with your state

• Renewing your registered agent and business licenses

• Keeping company minutes and resolutions (for corporations)

• Filing tax returns and necessary forms (such as Form 5472)

Failing to comply can lead to penalties, suspension, or even dissolution of your business.

Conclusion

Launching a business in the United States as a non-citizen is both achievable and advantageous. While the process involves several legal and administrative steps, it opens the door to one of the world’s largest and most dynamic economies.

By selecting the right entity type, complying with U.S. regulations, and understanding your immigration and tax responsibilities, you can establish a successful, credible, and scalable business in the United States. Whether you aim to serve U.S. customers or build a global brand, the American business landscape provides the platform to grow.

With careful planning and professional support, you can confidently bring your business vision to life in the United States.

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