How to Start a Business in the U.S. as a Foreigner

Did you know that you don’t need to be an American citizen to register a business in the United States? Anybody can do it, and it’s often no harder than it would be for a U.S. citizen. With that in mind, let’s take a look at some of the most common reasons entrepreneurs choose to form or expand their businesses in the U.S. Find more at the http://ilbizjobs.com

• Limited Liability Corporations (LLC): LLCs are one of the most popular business types in America today, and citizenship is not a requirement to start one. The setup process for an LLC is the same for a foreign national as it is for a US citizen, and is quite simple.
• Pass-Through Taxation: With an LLC, there are no corporate income taxes. This enables business owners to avoid “double taxation” effects caused by paying taxes both as an entity and an individual.
• Employer Identification Number (EIN): No Social Security Number, no problem! When it comes to EINs — which allow you to file taxes and hire employees — it doesn’t matter if you live in the U.S. or not.
• Legal and Compliant Revenue Streams: Foreign citizens can’t work in the U.S. unless they have a green card, but they can be a corporate officer or director.
• Small Business Administration Loans: These federally guaranteed loans, with flexible terms and low interest rates, are available to U.S. and non-U.S. citizens alike.

Depending on what type of business you open, and in which state, the process could vary a bit. In general though, there is a pretty typical process for starting an LLC in the U.S., and you might be surprised by how simple it can be.

1. Select a State: If you’re selling physical goods to a specific location, you may want to start your business in that state. If you will mostly be conducting business from your home country, then you might want to open your LLC in a state that has favorable conditions for foreign owners, like Delaware, Wyoming or Nevada.
2. Designate a Registered Agent: If you won’t be physically present in the U.S. to receive important legal documents, you’ll need registered agent service. A registered agent in your state of formation receives these documents in the mail and forwards them to you in your home country (or elsewhere in the U.S.).
3. File Your Articles of Organization: Once you prepare and file these documents with your state of formation, your LLC is ready to start doing business!
4. Acquire an EIN: Whether you’re from the U.S. or not, you’ll probably need an EIN to operate your business, because it allows you to open bank accounts, pay taxes and hire employees. It’s a simple application process that is the same no matter where you’re from.

While even these aren’t necessarily major hang-ups, it’s important to note that not every single step of the LLC formation process is a breeze for foreign nationals. Let’s take a look at a couple roadblocks you may run into along the way. 

• Opening a Bank Account in the USA: This is by far the most challenging hurdle, because it usually requires a trip to America to physically apply at a bank branch. If you choose this route, you’ll need to call the bank ahead of time to make sure you’re bringing all of the required documents. Different banks may have different requirements, so contacting them first is a must. 
  There are some other options though. If you have ever opened a personal bank account in the U.S., you might be able to open a business account remotely. Additionally, depending on the nature of your business, you may be able to get by with a service like PayPal.
• Obtaining an American Mailing Address: While you probably don’t need to open a physical office in the U.S., you will most likely need a valid mailing address, preferably in your state of formation. To accomplish this, many internationally located entrepreneurs like to use mail forwarding or virtual office services.