How to start a business as a foreigner?

Have you ever thought about pursuing a business idea in the United States but wondered if it's possible as a foreigner? The answer is yes, 95% of entrepreneurs and investors who have registered their businesses have done so safely without traveling abroad. 

But what should you consider when opening a business in the United States? In the U.S., you don't need a U.S. visa or a social security number to register a business. In fact, regardless of your immigration status, you can establish a company in the United States.

However, here are some key points to keep in mind. This guide outlines step-by-step how to register your company, meet legal and tax requirements, and maximize your opportunities in 2025.

1. Why Start a Business in the United States?

Advantages for Foreigners:

• Access to a Global Market: The United States boasts one of the largest economies in the world, offering access to consumers and businesses across multiple sectors.
• Tax Benefits: States like Delaware, Florida, and Texas offer favorable regulations for businesses, including reduced or no taxes on certain activities.
• International Recognition: Having a company registered in the U.S. enhances your business’s reputation and credibility with international clients and investors.

Facts: According to the U.S. Small Business Administration, more than 40% of successful startups in the U.S. are founded by foreigners.

2. Steps to Start a Business in the United States as a Foreigner

1. Decide on Your Business Structure

• LLC (Limited Liability Company): Ideal for small businesses and startups due to its flexibility and personal liability protection.
• Corporation (C-Corp or S-Corp): Recommended for larger companies looking to attract investors or go public.

Learn more about the differences between LLCs and Corporations in this blog.

2. Choose the Ideal State

• Delaware: Known for its business-friendly legal framework and reduced rates.
• Florida: Perfect for companies involved in international trade.
• Texas: Offers no state income tax, reducing overall costs.

3. Obtain a Tax Identification Number (EIN)

The EIN is necessary for opening bank accounts, hiring employees, and filing taxes.

4. Open a Business Bank Account

We recommend opening an account in the U.S. to facilitate financial transactions and build a business credit history.

5. Comply with Tax Regulations

Ensure compliance with Sales Tax and other state-specific taxes based on your operations.

Check out how to calculate Sales Tax in the United States.

3. Key Tax Considerations for Foreign Businesses

• Corporate Income Tax: Varies by state. Federal rates for C-Corps are 21%.
• Sales Tax: Apply it based on the state where your products are sold.
• Annual Tax Filings: Ensure correct submission of forms such as the 1120 for corporations.

Facts: Foreign companies may qualify for tax deductions if they meet the requirements. Learn more in this article.

4. Tips to Maximize Your Business’s Success

• Register a Business Address: A reliable commercial address enhances your business’s credibility.
• Obtain Legal Advice: Expert assistance ensures compliance with all local and federal regulations.
• Use Digital Tools: Implement technology to automate processes like tax calculations and accounting.

Conclusion

Starting a business in the United States as a foreigner is simpler than it seems when you have the right information and guidance. Choosing the correct legal structure, understanding tax regulations, and establishing your business in the right state are key steps to ensuring the success of your venture.

With the proper tools and resources, you can take full advantage of what the U.S. market has to offer.

Recommended blogs:

• Benefits of Starting an LLC in the United States
• How to Obtain an ITIN as a Foreigner
• Key Dates for Filing Taxes in the U.S. 2025