Can a Foreign Citizen Start a Business in the United States?

A foreign citizen business is one owned by a citizen of a country other than the US and based in the US. A lot of people wonder if a foreign citizen can start a business in the US and if they can, what kind of restrictions are imposed on them.

Yes. You can start a foreign citizen business in the US and the procedure for doing so is much the same as that for any American citizen that wants to start a business.

America is the land of plenty. It is a good place for businesses to flourish. Due to this, a lot of foreign citizens see it as a very good place to start a business. Some of the reasons why America draws a lot of businesses is:

• It has one of the largest and most integrated markets in the world
• It offers competitive tax rates
• It gives foreign citizens access to venture capital, angel investors and a variety of other public markets.
• Importantly, it makes it easier to get a green card.

Starting a Foreign Citizen Business in the US

The process of starting a foreign citizen business in the US does not differ much from the process American citizens have to go through. In fact, there are no restrictions on foreign citizens generally.

You do not even need to have a green card to start your business or purchase a corporation or Limited Liability Company (LLC) that is headquartered in the US. However, starting a business and actually working in the US are two different things.

Working in the US

Generally, as a foreign citizen, you can be listed as a corporate officer or director of a company. However, this does not make you eligible to work or live in the US. In order to do this, you would need a work permit, which consists of getting a green card.

Thus, while it is possible for you to own a business in the US and earn profits from it so long as you pay taxes, you would need to obtain a green card to actually work in the US.

Important Information for Starting your Business

The decision to start a business in the US cannot be made hastily or without due preparation. Even though the process is little different from that required for US citizens, there are some things that you should know:

• Most foreign citizens choose to start LLCs rather than C corporations. This is because C corporations are subject to double taxation on dividends.
• You would need to file an annual tax return for your business and a lot of states require incorporation renewal every year as well.
• You do not need a US address to incorporate your business in the US.
• If you decide to form an LLC, keep in mind that a foreign company can own the US LLC.