How To Setup Business In USA As Non-Resident?
Are you looking to start a new business in this exciting venture? The complexity of opening a company in a foreign country such as the United States can be overwhelming. Political and economic climate in the US has constantly been changing, so it is necessary to ensure the right tactics for keeping your business at a successful pace.
The United States has been welcoming foreign businesses, so it is a big opportunity for you to start a business in this beautiful country. As a non-resident, it is quite difficult to start a business in the United States. But the country makes it easier to register as well as establish a company.
Reason for establishing your business:
Incorporating your business in the USA as Non-Resident is quite a simple process as you can find more resources. These are quite helpful for you to easily help you along your way.
When you like to start your business in America, then you need to communicate in English. Communication plays an important role in providing better stability in business growth. Foreign nationals have been widely establishing businesses in the United States from companies to little boutiques.
Most of the businesses across the world rely on access to the US market. You could easily take advantage of the world’s largest as well as integrated national market by simply paying a lower Tax rate.
Whether you are starting a company, then you need to know about the ways of setting up the business in the USA as a Non-Resident. It is also quite an efficient option for getting your better support on the company formation, import-export, immigration, and many others.
- Easy to access to venture capital and angel investors
- Easier to sell in the US market From a customs and tax perspective
- Easier to reduce tax on income earned in the United States
- Easier to obtain Work Visa in the United States
- Enhances your company’s reputation in diverse markets
What Are The Types Of Business Entities?
Starting a new business in a new country could be quite thrilling, but it is also a challenging task. Normally, there will be complexity in establishing a business in any foreign country due to the uncertainty in the political and economic aspects.
Whether you are Non-citizens, then it is necessary to abide by all necessary procedures and resources to succeed in the business. There are 2 different types of business entities that you need to know.
C-Corp or corporation provides protection against personal liability for the business owners. But forming a corporation is quite expensive as it has more business structure. You have a better option to expand your business as these provide unlimited shares creating more benefits. A corporation entity is quite appealing to investors. But, the Corporations would be taxed on profits. Sometimes, you may be required to pay twice the amount.
2. Limited Liability Company (LLC):
Limited Liability Company (LLC) is one of the best business structures when you are starting a business in the US. The main reason is that your Members will be protected from personal liability for corporate decisions. All personal assets would be safeguarded when the company has any issue or debt. Limited Liability Company is also exempted from any kind of bookkeeping regulations.
Process For Registering A Company In The US:
Registration process for a business in the United States varies from state to state. These would mainly depend on the entities you are choosing, such as LLC or a Corporation. When you have the business structure along with the appropriate location, then you can easily start your company.
As a Non-Resident, you need to follow the below steps, such as:
- Choose a unique name for you C Corp or LLC
- File for incorporation in the state
- Get the physical U.S. mailing address
- Obtain the Employer Identification Number (EIN)
- Set up a U.S. bank account
- Hire registered agent service
Get Necessary Federal Approvals:
Normally, foreigners do not require a Green card to own a business to earn profit from it. When you work in a business that is invested in then, it is necessary to have approvals from the U.S. Government using the EB-5 Visa or E-2 Treaty Investor Visa.
What Is E-2 Treaty Investor Classification?
When you are a non-immigrant and non-citizen investor, then you need to qualify for the E-2 Treaty Investor classification.
- Having the nationality of a country with which the US maintains the commerce and navigation treaty
- Be in the United States for the sole purpose (developing and directing an investment enterprise)
- Be actively in investing, such as the substantial amount of capital
E-2 classification would allow the non-immigrant investors to initially stay in the U.S. for 2 years. Normally, the extended stays would be granted 2-year increments. There’s also no limit to the number of extensions requested.
Normally, you can start your business in the US without being a citizen but it is necessary to manage an LLC or corporation from your country legally. You need to have a valid Work Visa to enter the country. You can contact the US Embassy in your home country or US commercial service to apply for a Visa. E-2 visa is quite popular among entrepreneurs, and below are the requirements for obtaining an E-2 visa:
- You need to be a citizen of a country with which the US signed a Treaty of Commerce, Friendship, or Navigation
- You need to demonstrate your own interest in the company
- You need to already invest a large amount of money (minimum $100,000) in the US firm
Obtain An EIN:
Employer Identification Numbers or EIN is most important to be obtained for starting a business in the US. The IRS requires U.S. businesses to have the TIN or Taxpayer Identification Numbers. These are also called the EIN for the LLCs and Corporations.
Normally, foreign entrepreneurs do not have Social Security numbers, so they need to apply for an Individual Taxpayer Identification Number (ITIN). You can obtain the IRS form (W-7) along with documentation such as a driver’s license or birth certificate to confirm your identity.
Depending on the Entity type of business and location you choose, entrepreneurs need to comply with formalities. Starting a Business in the USA as a Non-Resident is quite a complex process, but you can seek professionals to get complete guidance on making the methods easier.
Setting up a business in the United States as a non-resident can be a complicated process due to all of the different rules and regulations that apply. However, if you take the time to do your research and consult with experts when necessary, it can be well worth it in the end. We hope that this blog post has answered some of your questions about setting up a business in the United States as a non-resident.
These are just some of the things you need to do when setting up a business in the USA as a non-resident . For more information ,please visit Bosc Tech Labs
Frequently Asked Questions (FAQs)
1. Do I need a visa to set up a business in the USA?
The short answer is yes. Unless you have dual citizenship or are a green card holder, you will need to obtain a visa before you can set up a business in the USA. The visa that you will need will depend on the type of business that you want to set up. For example, if you are setting up an LLC, you will need an E-2 visa.
2. Can I get a work permit if I set up a business in the USA?
Again, the answer is yes. Once you have obtained the necessary visa, you will also be able to apply for a work permit. This will allow you to work in your own company and hire employees.
3. What are the tax implications of setting up a business in the USA?
Depending on the Entity type of business and location you choose, entrepreneurs need to comply with formalities. Businesses should also consider the importance of mobile application and consult mobile application development company. Starting a Business in the USA as a Non-Resident is quite a complex process, but you can seek professionals to get complete guidance on making the methods easier.
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