Founders from around the world set up U.S. companies to reach American customers, work with U.S. partners or build a brand with global reach. The good news is that you usually do not need to live in the U.S. to form a company here. The challenge is that the process has more moving parts when you are abroad. This guide explains how to start a business in the USA as a non-resident, step by step, and where foreign entrepreneurs most often get stuck.
Can a Non-Resident Start a Business in the USA?
In many cases, yes. Forming a U.S. company is handled by individual states, not by the federal immigration system, and many states let people who live outside the country own an LLC or corporation.
If you are new to U.S. business formation in general, start with our beginner’s guide on how to register an LLC and get business licenses. The article below builds on it with the issues that are specific to international founders.
Step 1: Choose Where to Form Your Company
Every state has its own formation rules, filing process, annual requirements and taxes. If your company operates in a different state from the one where it was formed, it may also need to register there.
The U.S. Small Business Administration’s Launch your business guide explains that your business location affects the taxes, zoning laws and regulations you are subject to. For example, companies operating in Maryland register through the state’s Maryland Business Express portal.
Step 2: Pick a Business Structure
Most non-resident founders choose between two structures:
- Limited liability company (LLC): flexible and usually simpler to manage. It is a common choice for small businesses, consultants, online stores and trading companies.
- Corporation: more formal, with shareholders, directors and officers. Founders who plan to raise investment often look at this structure.
Structure affects how the business is taxed in the U.S. and possibly in your home country. Because cross-border tax rules are complex, talk to a qualified tax professional before you file.
Step 3: Appoint a Registered Agent and Get a U.S. Address
States generally require every company to name a registered agent with a physical address in the state of formation. This is the person or company that receives official legal and government mail for your business. Founders living abroad usually hire a professional registered agent service.
Banks, payment providers and licensing agencies often ask for a business address, so plan how you will receive mail early.
Step 4: File Your Formation Documents
An LLC files articles of organization (the name varies by state) and a corporation files articles of incorporation. After the state approves the filing, prepare an operating agreement or bylaws that record who owns the company and how decisions are made.
Step 5: Get an EIN from the IRS
An Employer Identification Number (EIN) is the federal tax ID number for your business. You will usually need one to open a business bank account, hire employees and file tax returns. The IRS advises forming your LLC or corporation with the state before applying.
The IRS’s online EIN application is limited. According to the IRS Employer Identification Number page, applicants whose principal place of business is outside the U.S. apply by phone, fax or mail instead of online. The online tool also requires the responsible party’s Social Security number or Individual Taxpayer Identification Number (ITIN). Some non-resident owners also need an ITIN for their personal U.S. tax filings, which is requested with IRS Form W-7.
Step 6: Open a U.S. Business Bank Account
Keeping business and personal money separate is essential. Many non-residents find this the hardest step. Banks set their own rules for foreign-owned companies, and some ask the owner to visit a branch in person. Have your formation documents, EIN confirmation, operating agreement and passport ready.
Step 7: Get the Right Licenses and Permits
Forming a company does not automatically give it permission to operate. Depending on your industry and location, you may need federal, state, county or city licenses, plus state tax registrations such as sales tax. Regulated fields like healthcare, human services, transportation, food and vehicle sales usually have extra requirements. Our sister company Xylis Healthcare works in one of these regulated fields, supporting adults with developmental disabilities in Virginia, and shows how much planning that kind of work takes.
Owning a Business vs. Working in the USA
This is the point that surprises many founders. Forming and owning a U.S. company does not, by itself, give you permission to live or work in the United States. USCIS explains the difference on its options for entrepreneurs to work in the United States page. For example, USCIS notes that a B-1 business visitor may travel to look for office space, secure funding, negotiate contracts or attend certain meetings about opening a new business, but may not begin operating or working for it.
USCIS lists several temporary and permanent pathways for entrepreneurs, each with its own requirements. If you plan to move to the U.S. to run your company, speak with a qualified immigration attorney before you make plans.
Common Mistakes Non-Resident Founders Make
- Applying for an EIN before the company is formed
- Assuming a U.S. company comes with a visa or work permission
- Skipping industry or local licenses because the state filing was approved
- Missing annual reports and renewal deadlines
Plan for Growth Once You Are Set Up
After the paperwork is done, your next job is getting customers. Our Web Design & SEO team builds websites that help new businesses get found. If you open a physical office, our sister company Alomo Cleaning Services shares a practical office cleaning checklist for small businesses. Relocating to the DMV yourself? Alomo also shares a move-in cleaning checklist for getting a new home ready before you unpack.
How MastermindGOC Helps International Founders
MastermindGOC LLC is based in Laurel, Maryland, and helps clients with business setup and licensing in the DMV and around the world. We work remotely by phone, email and video call, so you can get help wherever you live. Through our Business Setup & Licensing consulting, we help with:
- Choosing an LLC or corporation and preparing formation documents
- Step-by-step guidance on getting an EIN and registering with state tax agencies
- Identifying the state and local licenses and permits your business may need
- Application support for regulated industries, including healthcare
- Preparing and organizing the documents agencies ask for
Approvals are decided by the agencies involved, but we help you understand each step and stay organized.
Frequently Asked Questions
Do I need a U.S. visa to start a business in the USA as a non-resident?
In many states you can form and own a company without living in the U.S. A visa or other immigration status is a separate matter and matters if you want to live or work in the U.S. Check USCIS guidance and speak with an immigration attorney.
Can I get an EIN without a Social Security number?
Yes, in many cases. The IRS lets applicants whose principal place of business is outside the U.S. apply by phone, fax or mail. Check the IRS EIN page for current instructions.
Which state should I form my company in?
It depends on where you will have customers, staff or property, and on your tax situation. Many founders form where they will actually do business.
Can MastermindGOC work with me if I live outside the U.S.?
Yes. We work with clients worldwide by phone, email and video call.
Ready to Start Your U.S. Business?
If you are planning to start a business in the USA as a non-resident, we would be glad to help you map out the steps. Call +1 240-639-2059, email info@mastermindgoc.com or send us a message through our contact page. MastermindGOC LLC is located at 11696 South Laurel Drive, Laurel, MD 20708, and serves the DMV and clients around the world.