How to Open a Business in the U.S.: A Guide for Non-Residents

A growing number of non-resident entrepreneurs are expanding their operations into the United States—a market known for its economic stability, pro-business regulations, and vast consumer base. While the opportunities are significant, understanding the regulatory, tax, and operational requirements is essential for success.

This guide outlines key steps for non-residents to establish and operate a U.S. business in full compliance with local laws—helping you avoid costly penalties and streamline your expansion.

Choosing a business structure

Although S-Corporations offer tax advantages, they are only available to U.S. citizens and permanent residents—making them unsuitable for most foreign investors.

There are several clear advantages to forming a limited liability company (LLC). The most notable benefit is limited liability protection. This means that the members of an LLC are shielded from personal liability for the company’s business decisions or actions. As a result, personal assets are protected if the company accumulates debt or faces a lawsuit.

Many foreign-owned startups favor the C-Corporation (C-Corp) structure, as it allows for unlimited shareholders, which is often attractive to investors.

Registering a business: step by step

1. Choose your legal structure
   Decide between sole proprietorship, partnership, LLC, or corporation. Each has different legal, tax, and liability implications—most small businesses prefer an LLC for liability protection and tax flexibility.
2. Pick a unique business name
   Conduct a name availability search with your Secretary of State. Your name must include required legal words (e.g., “Inc.,” “LLC”) based on state rules.
3. Appoint a registered agent
   You must designate a person or service with a physical address in the state to receive official correspondence during business hours.
4. File formation documents
   Submit Articles of Organization (for LLCs) or Articles of Incorporation (for corporations) to your state’s Secretary of State, along with the required fee (typically $50 to $300, varies by state).
5. Apply for your Employer Identification Number (EIN)
   Request your federal tax ID from the IRS—essential for tax filings, bank accounts, and hiring employees. Some states also require a state tax ID for compliance.
6. Register with state and local authorities
   Depending on location, you may need to register for local permits, zoning compliance, and if operating in multiple states, register for a ‘foreign qualification,’ which allows your business to legally operate outside its state of formation.
7. Obtain business licenses & permits
   Identify the federal, state, county, and city licenses or permits required for your industry and operations—and apply for them accordingly.
8. Open a business bank account & insurance
   After registration, open a bank account under your business name and consider purchasing liability insurance, workers’ compensation, or other coverages appropriate to your business type.
9. Create governance and record‑keeping documents
   Draft necessary internal documents: an operating agreement for LLCs or corporate bylaws and shareholder resolutions for corporations. These outline roles, meetings, and voting procedures.
10. Understand compliance and reporting requirements
    Stay current on annual filings, business taxes, corporate transparency laws (e.g., FinCEN Beneficial Ownership reporting), and other regulatory duties to avoid fines or penalties.

Is a visa required to start a business?

If you are not a U.S. citizen or permanent resident, you must obtain the appropriate visa to manage or work for your business in the United States. While you can register a U.S. company (such as an LLC or corporation) remotely from abroad, operating that business on-site, whether by opening a physical office, hiring employees, or managing daily operations, requires a valid visa.

Common visa options for business owners include

• E-2 Treaty Investor Visa: For individuals from treaty countries who invest a substantial amount in a U.S. business. This visa allows you to both start and operate the business.
• L-1 Intracompany Transfer Visa: For business owners or executives transferring from a foreign branch to a new U.S. office.
• EB-5 Immigrant Investor Visa: For those investing at least $800,000–$1,050,000 and creating at least 10 full-time U.S. jobs (offers a path to a green card).
• B-1 Business Visitor Visa: For attending meetings or exploring opportunities — not for active business operations.

Why a Reliable Accounting and Bookkeeping System Is Essential

When launching a business in the United States, setting up a reliable accounting and bookkeeping system from day one is not just best practice—it’s a legal and financial necessity. A well-structured system helps you stay compliant with federal and state tax laws, manage cash flow efficiently, and prepare for potential audits or investor due diligence.

Whether you choose cloud-based accounting software like QuickBooks or Xero, or partner with a professional accounting firm, your system should allow you to:

• Track income and expenses accurately
• Reconcile bank statements regularly
• Generate financial reports (P&L, balance sheet, cash flow)
• Manage payroll and tax filings in compliance with IRS requirements.

Many foreign entrepreneurs make the mistake of underestimating U.S. accounting complexities. U.S. businesses must follow Generally Accepted Accounting Principles (GAAP), which are critical for both tax compliance and credibility with banks and investors. Partnering with a U.S.-based accounting provider ensures you follow GAAP and avoid costly penalties due to errors or late filings.

Safeguard Your Business and Your Investment

Engaging with a qualified accountant or CPA early in your U.S. business journey is a strategic move, not only for compliance but also for protecting your business, assets, and investment capital. They can help you evaluate your business plan, startup costs, and financing strategy, as well as guide your choice of entity (such as LLC or S-Corp) to ensure optimal legal protection and tax treatment.

Ensure compliance and accurate tax planning

A qualified accountant or CPA can maintain clean books under GAAP, manage payroll tax and sales tax responsibilities, and help you avoid penalties or audits from misreporting. In addition, an accountant delivers top-tier financial statements and strategic forecasts that safeguard your investment and enhance its appeal to stakeholders.

Over time, your accountant can guide you through budget reviews, cash flow forecasting, financing rounds, or potential exit strategies, ensuring that your decisions help protect and grow your investment over time.

How can H&CO help

At H&CO, we specialize in helping international investors navigate the complexities of launching and managing a U.S. business. With over 30 years of experience supporting foreign entrepreneurs and multinational clients, our team provides end‑to‑end advisory tailored to the unique challenges non‑residents face—so you can expand with confidence, clarity, and compliance.