Published: January 20, 2022
The United States (US) has a Global Entrepreneurship Index (GEI) of 83.6, making it the best country to start a business. GEI quantifies opportunities available to small businesses. Despite the existing competition, entrepreneurs have a reasonable chance of financial success. More importantly, this statistic does not discriminate noncitizens from citizens. Even noncitizens can enjoy the opportunities so long as they qualify as small businesses.
Starting a business as a foreigner is challenging. However, in the US, the playing field is more or less even. ALG Lawyers prepared a handful of tips that can guide noncitizens in starting their business within the country. Take note of the following:
Business Starter Tips for Noncitizens
1. Research intensively
One of the best ways to prepare as a noncitizen business owner is by researching. Learn as much as you can about all things relevant to the business you are intending to invest in, US business laws, and other details that will help make your transition easier. If you need help understanding a legal concept or two, do not hesitate to connect with ALG Lawyers.
2. Decide on a US business visa
There are several types of business visas that allows noncitizens to become a business owner, corporate officer, or director of a US-based company. Here are available options:
It covers nationals of a country the US maintains a treaty of commerce and navigation with who carry on substantial trade and principal trade between the US and the applicant’s qualifying country.
It covers nationals of a country the US maintains a treaty of commerce and navigation with who invested, or are actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the US and seek to enter the country for the sole purpose of developing and directing the investment enterprise.
L Visas (L-1A And L-1B) for Temporary Workers
It covers temporary intracompany transferees who work in managerial positions (L1-A Visa) or has specialized knowledge (L-1B Visa).
EB-5 or Immigrant Investor Visa
It covers investors who invest in commercial enterprises in the US and plan to create or preserve 10 permanent full-time jobs for qualified US workers.
EB-6 Visa or the International Entrepreneur Parole
It covers foreign entrepreneurs whose stay in the US could significantly benefit the public through their business ventures. Notably, entrepreneurs granted this visa can only work for their “start-up” businesses.
If you have questions regarding any of these business visas, do not hesitate to talk with ALG Lawyers. Our team is more than happy to discuss any of these visas in greater detail.
3. Draft business plans for visa application
One of the most common documents required for US business visa approval is a business plan. Depending on the visa category applied for, the US Citizenship and Immigration Services (USCIS) may need to check the profitability of a business proposal. To decide on that matter, it would require the submission of detailed business plans. Be specific with your projections and provide realistic means to achieve business goals.
4. Process the needed federal approvals
Noncitizens do not need a green card to start and own a business in the US. However, they must comply with specific lists of requirements to legally operate within the country. Before making investments, interested applicants should acquire permission from the US government.
Please note that the requirements may vary depending on the state or locality where the business will operate.
5. Decide what company type suits you
There are two (2) major types of companies that noncitizen business owners may open in the US. They are:
• Limited Liability Company (LLC)
• Corporation (C-Corp)
Each of these two has specific advantages and disadvantages. However, of the two, many would recommend LLC. LLCs are appropriate for starting businesses due to the lower capital requirement and protection from personal liabilities. Besides, LLCs do not require the same level of strict recordkeeping as C-Corps.
6. Designate a registered agent
A registered agent will do several works for your company but their primary duty is to manage all legal and corporate documents. They often work with immigration lawyers to ensure that your immigration to the US runs smoothly along with the establishment of your business.
It is necessary for LLCs and C-Corps to appoint a registered agent in every state where it has filed formation documents. States may impose different qualifications but commonly, registered agents should be over 18 years old, have a physical street address within the state, and available at the said address during normal business hours.
7. Get an EIN and set up a bank account
Besides legal documents, companies should acquire an Employer Identification Number (EIN) and a bank account. The Internal Revenue Service asks these requirements for tax purposes.
8. Acquire other required permits and licenses
Be mindful with the specific permits and licenses required for noncitizen-owned companies. They are often more intricate than the requirements for citizen-owned companies. Do not forget to check with the Secretary of State, county clerk, and local government authorities. They can provide the complete details on what requirements your business has to comply with.
9. Monitor ongoing compliance tasks
Besides taxes and annual renewal of specific permits, the government may impose several ongoing compliance tasks for your company. Be sure to complete every one of them before the given deadline. Non-compliance may lead to the revocation of your visa or your business permit. Get in touch with ALG Lawyers to prevent any of these from happening.
10. Partner with trustworthy immigration lawyers
We understand that it is easy for you to feel confused and overwhelmed because of everything you need to go through as a business owner. Whether you intend to do permanent or temporary business in the US, hiring a competent immigration lawyer would be helpful. ALG Lawyers can help you manage the legal requirements and processes to lessen the stress of immigration.
ALG Lawyers have been in the immigration industry for years and helped immigrants achieve their dreams of living and working in the US. You can expect us to be thorough, consistent, and responsive. In exchange for your trust, we will provide you with top-tier legal services.
Business Visa Services in Los Angeles, CA
Besides the things listed above, there can be more requirements to start and maintain a business as non-US citizens. If you do not have a legal background, it is best to ask help from the experts. When it comes to processing business visa to the US, ALG Lawyers have a dynamic team waiting for you.
ALG Lawyers‘ extensive practice made us one of the most reliable immigration law firm in Los Angeles, California. Partner with us and you will receive responsive, holistic, and thorough legal services. We will pledge to you our full dedication regardless of your business’ type and size.
(Please note that this article does not create an Attorney-Client relationship between our law firm and the reader and is provided for informational purposes only. Information in this article does not apply to all readers. Readers should not rely on this information as legal advice and should seek specific counsel from a qualified attorney based on their individual circumstances. Thank you.)