If you’ve been wondering, “Can I start a business in the USA as a foreigner?” you’re not alone. Many entrepreneurs have confusion about whether or not this is possible. Here are answers to five of the most common questions people ask about this topic.
Opening a business in the United States has multiple benefits. Obviously, the market for goods and services in the USA is huge, due to the size of the country’s geography and its population. You’ll find a large pool of investors here, too, which we know is ideal for startup companies or those that are expanding.
Beyond that, laws and regulations for selling in the US are often more lenient than in other countries. Furthermore, the tax rate is considerably lower than in many nations. The customs process for importing and exporting goods is reasonable. So, we’d have to say that the overall climate for doing business is quite favorable.
Some business owners want to open a business in the USA because it often makes it easier to get a green card, also known as a Permanent Resident Card, which allows you to live and work permanently in the country. However, you do not need a green card to open a business in the USA.
Just be aware that if you do not have a green card or a work permit, you cannot work in the USA, even for your own business. Additionally, you cannot receive a salary or compensation without one of these special visas. We would recommend that you make arrangements to have your company in another country issue your compensation.
No, you do not need a US address to open a business in the USA. Some of our clients, however, have found it easier to do business with a US address. Customers and suppliers will likely not want to deal with a foreign address if they need to send mail or parcels.
You are entitled to start either an LLC or a C corp in the USA. Many foreigners prefer an LLC because of the tax benefits. A C corp must pay double taxation on dividends, which an LLC does not. There are numerous pros and cons of each type of business status, though, which we suggest you weigh and discuss with a professional.
As you’ve probably gathered from the information above, while starting a business in the USA is quite doable, there are some nuances to take into consideration. For example, as discussed in the previous question, either an LLC or a C corp may make more sense for your business, depending on your unique situation.
Also, you will need to file and pay taxes on your business. You may need to renew incorporation documents each year, too.
All of these needs and others like them mean that it’s smart to hire accountants that understand American regulations and can assist with initial paperwork, taxes, and business strategies. This ensures your business is always in compliance while being as profitable as possible, too.
Accountants Without Borders, based in San Diego, California, is here to answer your questions and help your business grow with accounting expertise and proven solutions for expanding your horizons. We offer dedicated support tailored to your business.
So, the answer to your question, “Can I start a business in the USA as a foreigner?” is a resounding, “Yes!” Reach out to Accountants Without Borders today for the assistance you need, and you’ll be off to a great start!