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

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

By NicoleD
Published: June 8, 2009 Updated: February 28, 2014

Breaking into the U.S. market can be a rewarding venture for many foreign businesses. Because U.S. citizenship and residency are not required, foreign nationals are able to start or expand on U.S. soil without experiencing much more red-tape than an American-born business owner would.

Steps to Starting Up a Foreign Business in the U.S.:

  • Foreign business entities are incorporated at the state level in the U.S. The process will vary from state-to-state, but generally involves two steps: applying to register in that particular state, and establishing a registered agent with a valid address in that state (no PO Box numbers). A registered agent can be either the business owner or another person who is authorized to receive legal papers on behalf of the business, such as an attorney or secretary.
  • The rest of the steps to starting up are similar to those that an American citizen would take. The breakdown of 10 Steps to Starting a Business includes information on naming your business, requirement licenses and permits, and tax matters.
  • Establishing an online retail presence in the U.S. is a popular choice for many foreign business owners. You can read more about general resources for online businesses, including privacy and advertising regulations here, along with specific information on international sales.

Importing Goods into the U.S.:

  • The Department of Commerce's Trade Information Center provides information and web links to importation procedures.
  • Working with a licensed customs broker could be a valuable asset to your import plan. A customs broker prepares all the documentation required for importing goods. To learn about laws and regulations applying to custom brokers, including licensing requirements and importing procedures, visit the Transportation and Logistics Guide.
  • Many imported and exported products are regulated by federal agencies and may require specific licenses and permits. Check here to see if you need to obtain additional paperwork.

U.S. Tax information for Foreign Businesses:

  • The U.S. tax code can be confusing even to life-long citizens. Violation of any tax—sales, payroll, income, etc.—can incur fees and penalties. The IRS offers a guide specifically on International Business, but if you are still left with more questions, it is always safe to check with a qualified attorney or accountant.
  • U.S. citizens will likely need an Employment Identification Number to start up, a process that requires their social security number (SSN). In the case of foreign businesses, an Individual Taxpayer Identification Number (ITIN) will suffice. The IRS issues these 9-digit tax processing numbers to individuals who are required to pay US taxes but who are ineligible for a SSN, including resident and non-resident aliens and foreign nationals.
  • You may be required to file IRS Form 5472, which applies to US corporations with at least one foreign owner who owns 25% of shares, to account for the nature of monetary transactions.
  • There are also special tax credits and incentives available to businesses, including foreign tax treaties. The IRS offers a tax treaty overview and resources here.

Edited for formatting issues.

About the Author:

Comments:

Hi, I am Canadian citizen since 1984 living in Montreal Canada and I am in IT business since 30years. Right now I'm thinking to create my own compagny (IT Permanent and consultants placements in US) in Miami WPB where I will live for good. I have the budget for living there,renting an office, hiring 2-3 US citizens as Account mangers and recruiters with annual salary guarantee for all three. What are the steps?
Hello, may I ask , can B1/B2 holder start his won bussines in US in case of presence of permanent mail address of person hold green card? Wish to recive the answer ASAP Thank you
Question: I lived in the US for several years and started an LLC there. I maintain a residence there but live mostly in Canada now. I have an SS# and EIN # and pay US taxes. Are US LLCs owned by nonresidents eligible for SBA loans?
Hello, I'm a Canadian looking to start a business in the US. My understanding is that I need to start an LLC in the state to start the business, with an address of someone who has signing authority. I have someone who lives in the US but cannot be involved in the business due to their current work situation. Is there any way to get someone who isn't a lawyer to be the mailing address? Do I start the LLC as a Canadian in Canada? I'm a bit confused with the chicken and egg situation here... Then once I have the LLC it is possible to get the EIN to file taxes in the US? Once that is done, is there any way to make my head office in the US and get a permanent work visa via the LLC that I created? Thanks for any help.
I am discussing a business opportunity with a Brazilian national who wishes to relocate to the USA. Would appreciate any info on how this person could invest ina LLC or Corporation and receive a work permit here. thank you.
Good Day everyone. I have a few questions… Maybe someone can help me. Thanks in advance. We have a flower production company in Colombia, and our next project is to expand our company into the US. We want to open a company or corporation that handles our marketing and sales. I have been reading about it and one of the requirements is to establish a registered agent with a valid address. How can we do that? Are there companies that do that? What other steps do we need to proceed? We are holders of US. Business and Pleasure Visas. How much will it cost to open a company like this? Thanks.
Hi everybody, I have a simple question We, as a family, have an interest in moving to Florida and establish and Beauty Business and would like to know how to do that. Florida has been chosen from our side mainly because we are all fluently in English, Spanish and between us we manage Danish, German and Russian all on business level. Strategically we believe that our son, with English and Spanish, would be able to incorporate fast at school and we thinking of doing business as usual would be able to communicate with a vary of clients. But how do we continue from here? Antonio
I currently reside in Canada working in the United States under a TN Visa. I am interested in setting up a small chemcial manufacturing company and continue to work at my current employer in the US as I need my current pay to fund the new company. The Small Business that I would start up would only employ a few people in the first couple of years with hopes to increase to 40 people within a few years. I would also need to preform the work at the new company until it takes off. Can I hold two visa at the same time. What other steps should I take.
What do I need to acquire to open a fashion retail store in LA as a foreigner?
My brother is having a coloured stone slabs art and craft business. He has many clints in USA.My question is, whether he eligible to open a Warehouse here in USA with a B1 visa? Also, I'm residing in US on a F2 visa, Can I help him in his business.We are also looking for Business Attorneys in the matter. Thanks in advance.

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