How can a foreigner open a company in the

U.S.?
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7 Answers

Scott M. Stolz, Author & Researcher

Updated Apr 6, 2015 · Author has 1k answers and 3.8m answer views
Originally Answered: What are the steps required to open a small company in the US a
foreigner? And how much should I keep as initial capital if I need a small office with 2 or 3
employees?
The steps to open a small company as a foreigner is the same as opening a small company as a
citizen.  You can invest in a business you create in the U.S. without being a U.S. citizen.  The
only difference is whether you have a right to work in the United States or not and what
paperwork and visas you need to enter the country.

Here are some of the general steps you need to follow.

1. If you are going to visit the U.S. or live in the U.S., you will need the appropriate visas
and may wish to apply for permanent residence. You may wish to inquire about specific
programs for foreign investors.  Like most countries, the U.S. welcomes business people
and investors that create jobs in the U.S.
2. Decide on what business structure is appropriate and register your business in the state
your business will be located.  Limited Liability Companies (LLC) and Corporations are
the most popular structures, but there are others that may be more appropriate in specific
situations.
3. Register with the tax authorities.  You will need an Employer Identification Number
(EIN) for your business from the Internal Revenue Service (IRS).  In most cases, you will
need a Sales Tax Permit from the state as well.
4. Capitalize your business with cash or assets.  The requirements vary state by state.  For
example, Texas requires a minimum $1,000 capitalization.  To qualify for certain
immigration programs, you may need to invest significantly more.  For example, you
 may need to invest $500,000 to $1 million to qualify for permanent residence based on
being an entrepreneur/business investor.
5. Some local jurisdictions (city, county, district, etc.) sometimes have additional
requirements.  For example, you may need a building occupancy certificate from the Fire
Marshal, or be subject to zoning laws.  Contacting the city where you will be located
usually helps you find out what any local requirements are, if any.
6. Rent an office somewhere.  The amount of capitalization you will need for this will vary
greatly market by market.  For example, an office in San Francisco or New York City is
going to be much more expensive than an office in Houston or Cleveland.
7. Setup all the other things a business needs, which is the same whether you are a foreigner
or not. 

As far as what your ideal capitalization should be, that really depends more on your business
model and the market you serve.  It's hard to put a specific number on it without knowing more.
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Aidan Healy, at Healy Consultants, helping businesses to set up in USA

Answered Jan 11, 2017 · Author has 452 answers and 1.2m answer views
Originally Answered: How can a foreigner open a company in US?
I am not sure what type of business you want to open in the USA. So, I am going to provide you
the common procedure most foreigners follow to start a company assuming that you have done
your market analysis.

The following are the steps to open a company in the USA as a foreigner (non-resident):

1. Decide the place where you will open your company in the United States of America;
2. Choose a state to incorporate your business;
3. Decide the type of business (entity structure) to establish;
4. Finalize shareholders and directors for your company;
5. Understand the laws of the state(s) where you are going to setup your company and
register;
6. Prepare the documents required to register a US company;
7. Form a non-resident US company;
8. Get federal employer identification number, tax identification number and other licenses;
9. Open a business bank account;
10. Apply for residence visa;
11. Start your company by finding office space, hiring office staff etc.

Explanation

The first step in registering a company in the USA as a foreigner (non-resident) is deciding the
state in which you will like to start and incorporate your businesses.

Different from most countries across the globe, in the USA, company registration is not done at
the federal level, but at the state level, i.e. you will need to register your business in every state
you wish to operate.

The decision should consider the tax regime enforced, as corporate taxes are enacted by the state
governments as well.

The second step is deciding upon which business structure is more suitable for your case. In the
USA you can establish a LLC, a C-Corp, and a branch. Each one of these structures comes with
different requirements and benefits.

Third step: Once all the requirements are met and the documentation is ready, you will be able
to incorporate the company. The time-frame for the incorporation process can vary from state to
state, however overall the USA has an efficient and reliable system.

Fourth step: After company incorporation, you must apply for a federal employment
identification number, the tax identification number, and register your company with the Labor
authority if you wish to hire local employees. Furthermore, depending on your company’s
activities you may be required to apply for a specific license before conducting business.

Fifth step: Once your company is set up, you can proceed to open a bank account. The USA has
many local and international banks to choose from. When starting the application process, you
will be required to provide copy of incorporation documents, a business plan and the
shareholders/directors’ documents. Additional information may be required depending on your
business activity.

Sixth step: After incorporation, you may also apply for residency visas if you wish to reallocate
to the USA. This may be the trickiest part of the entire process, as there are some strict
requirements.

Overall the incorporation process as a foreigner is very straightforward. The USA allows 100%
foreign owned companies and offers several incentives for foreign investments.

Reading suggestions:

1. Comparison of the types of business entities in the USA

2. Summary table on USA company registration
3. Table of comparison of the USA free zones.

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