How to Start a Business in the US as a Foreign National

The United States is often referred to as the land of opportunity—and that extends to entrepreneurs from around the world. With a thriving economy, innovation-friendly policies, and a vast consumer market, the US is an ideal place to start a business.

But what if you’re not a US citizen or resident? Can you still launch a company in the United States? The answer is yes—foreign nationals can start and own businesses in the US. However, the process involves a number of legal, financial, and immigration-related steps.

Many foreign entrepreneurs choose the E2 visa to work and live in the US because it offers flexibility and renewable residency tied to business activity.

This guide will walk you through the essential steps to starting a business in the US as a foreign national.

Can a Foreign National Start a Business in the US?

Yes. There are no citizenship or residency requirements to start or own a business in the United States. Foreign nationals are allowed to form and own US-based companies. However, being allowed to own a business is different from being allowed to work for or manage that business while physically present in the US.

If you plan to live in the US and be involved in day-to-day operations, you’ll need to secure the appropriate visa or immigration status.

There are two main components to keep in mind:

Forming and owning a US business
Legally working for or managing that business in the US

Choose the Right Business Structure

Foreign entrepreneurs typically choose one of the following business structures:

Limited Liability Company (LLC)

Provides liability protection for owners (members)
Offers pass-through taxation (profits and losses reported on the owner’s tax return)
Easier and cheaper to maintain than corporations
Allows 100% foreign ownership

C Corporation

Treated as a separate legal entity, taxed on its own income
Can issue shares and attract outside investors
Preferred for startups that seek venture capital or plan to go public
Allows 100% foreign ownership

Foreign nationals often choose LLCs for simplicity, unless they are seeking external funding, in which case a C Corporation (usually registered in Delaware) may be more appropriate.

Select a State for Incorporation

You can incorporate your business in any US state. Popular options include:

Delaware: Known for corporate-friendly laws and investor preference
Nevada: No state income tax and strong privacy protections
Wyoming: Low fees and minimal regulations
The state where you plan to operate: This is essential if your business will have a physical presence or employees

If your business will operate in a state different from where it’s incorporated, you may need to register as a foreign entity in the operating state.

Register Your Business

Once you’ve chosen your business structure and the state of incorporation, follow these steps:

Choose a unique business name and check for availability
Appoint a registered agent who has a physical address in the state and is authorized to receive legal documents
File formation documents (e.g., Articles of Organization for LLCs or Articles of Incorporation for C Corporations)
Pay the required state filing fees

After completing these steps, you’ll receive a certificate confirming your business is officially registered.

Apply for an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is required to:

Open a US business bank account
File federal and state taxes
Hire employees

Foreign nationals can obtain an EIN from the IRS even if they don’t have a Social Security Number (SSN). You can apply:

Online via the IRS website (only if you have an SSN or ITIN)
By fax or mail using Form SS-4
Through a third-party service provider

If you don’t have an SSN or ITIN, leave that field blank and attach a letter explaining your foreign status.

Open a US Business Bank Account

Opening a business bank account is essential for separating personal and business finances. Requirements typically include:

EIN confirmation letter
Articles of Incorporation or Formation
Operating agreement or corporate bylaws
Passport or government-issued ID
Proof of address (may be US or foreign, depending on the bank)

While some traditional banks require you to be present in person, certain online banks and fintech services allow international founders to open accounts remotely. Examples include Mercury and Brex.

Understand US Tax Obligations

Taxes can be complex for foreign-owned businesses, so working with a certified public accountant (CPA) familiar with international taxation is highly recommended.

Key points include:

LLCs with foreign members must file Form 5472 and maintain proper accounting records
C Corporations must file corporate income tax returns and pay applicable federal and state taxes
Sales tax may apply depending on the nature and location of your business
Payroll taxes apply if you hire US-based employees

Failure to comply with tax regulations can result in penalties or the loss of good standing.

Immigration Considerations: Can You Work in the US?

Forming a business does not give you the legal right to work in or even enter the United States. If you plan to manage or operate your business from within the US, you will need an appropriate visa.

Common visa options include:

E-2 Treaty Investor Visa

Available to citizens of countries with an investment treaty with the US
Requires a “substantial” investment in a US business
Allows you to manage and operate the business

L-1 Intracompany Transfer Visa

Allows executives or managers of foreign companies to open or work at a US subsidiary
Requires at least one year of prior employment with the foreign company

O-1 Visa

For individuals with exceptional ability in their field

EB-5 Immigrant Investor Program

Requires an investment of $800,000–$1.05 million
Must create at least 10 full-time US jobs
Can lead to permanent residency (green card)

Consulting an experienced immigration attorney is essential to determine the best path based on your nationality, business goals, and personal situation.

Set Up Business Operations

After incorporation, you should take steps to establish your operational infrastructure:

Draft an operating agreement or corporate bylaws
Set up accounting and bookkeeping systems
Register for any required business licenses or permits
Build your online presence, including a website and professional email
Consider obtaining business insurance to protect your assets
Hire employees or independent contractors as needed

Stay Legally Compliant

Running a US business means keeping up with federal, state, and local compliance requirements. This includes:

Filing annual reports and paying franchise taxes (varies by state)
Keeping company records and meeting minutes (for C Corps)
Renewing business licenses and permits
Filing annual federal and state tax returns
Maintaining a registered agent in your state of incorporation

Failing to comply with these requirements can result in financial penalties or dissolution of your business.

Final Thoughts

Starting a business in the US as a foreign national is both possible and practical. While the legal and logistical steps are more complex for non-residents, the United States offers one of the most supportive environments in the world for entrepreneurs. With careful planning, proper documentation, and professional guidance, you can establish a successful business that thrives in the US market.