Tips For Launching Your Business In The US As A Foreigner
It is a well-known fact that starting a business in the US is hugely advantageous due to a competitive marketplace and continuous innovation. This is why thousands of foreigners try launching their own businesses every year in search of the American Dream.
Generally, many people are inclined towards starting their businesses in the US due to a low cost of banking, stable currency and exchange rate, low initial cost compared to other countries, ease of operation, and of course, the trust and reputation that comes with all of this.
So if you are in the process of kickstarting your very own business in the US as a foreigner, we have some amazing tips to help guide you through the process, and you can also get help from Relin Consultants to make it smooth and seamless.
Get The Right Paperwork
It is vital that you visit the US before spending hundreds of dollars and multiple hours in setting up your business. As a foreigner, you will have to apply for a temporary business visa, which is the B-1, unless you qualify for the US Visa Waiver Program that allows citizens of 38 countries to travel to the US for business without a visa for up to 90 days.
If you come from a non-English speaking country, we strongly advise you to get all your relevant documents translated using professional USCIS translation. This is beneficial as it will help prevent any delays during the visa processing time. Examples of some documents that may need translation include your birth certificate, medical records, educational transcripts, and financial statements. Visit Languex Translation they provide an inexpensive, fast, high-quality translation.
Build A Business Plan
When starting your own business, it is vital to draw up a detailed business plan so that you know you are dealing with facts and figures. This will help avoid assumptions and biases from clouding your judgment.
You will also need to have a sketch of your organizational structure so that your internal business environment is composed of a hierarchy and a proper chain of command. This will help you succeed in the day-to-day workings of your business.
Moreover, a business plan is an excellent way to map your goals and objectives, write down prospects for future growth and milestones, and help you keep track of your results and achievements.
All this will require rigorous market research, identification of possible niches, and exploring viable entry points so that your business disrupts the market and offers a sustainable solution to the problem at hand. Since the US is a highly advanced and competitive market, it will be worth your while to do a deep dive and develop an impressive business plan.
Get To Know The Laws, Rules, and Regulations
As someone starting a new business, you will need to incorporate your business either as a Limited liability company (LLC) or C-Corp. These are legal structures that help set up your business as distinct entities.
LLCs are usually the most common choice for most foreigners, especially those who are sole owners of their business. They enable you to have wiggle room when it comes to profit and loss allocations and have no entity-level tax. However, as a foreigner, you will be required to file your personal US tax returns from your business.
Alternatively, a C-Corp is great for foreigners who don’t want to go through the hassle of filing a US personal income tax return. The profits from a registered C-Corp business will be taxed twice, first at the corporate level and second as dividends to shareholders. Depending on where you are, this may not be a big concern since many countries view US dividends favorably.
You will also need to register your company. Delaware and Nevada are considered low-burden states as they have flexible, generous, and friendly corporate laws for business owners and shareholders alike.
Generally, you will need to do the following:
- Trademark your business name by searching the US Patent and Trademark Office database.
- Get a registered agent, such as a physical address or an individual who receives documents for the company.
- Register with relevant state agencies where you plan on conducting business.
- Fill out the certificate of incorporation.
- File a report after the business is incorporated and pay the franchise tax annually.
Sort Out Finances
When starting a business, you will need to dig into financing options. We recommend exploring multiple options, such as personal savings, bank loans, venture capitals, angel investors, or crowdsourcing.
In the US, consider getting a government-backed SBA loan in case you need additional funds. Also, after getting your Employer Identification Number (EIN), open a business bank account and explore the optimal option so that you can also earn interest on any deposits you make.
We suggest adhering to very strict bookkeeping and filing your taxes and other expenses to avoid any legal troubles.
Parting Thoughts
Setting up a business is exciting yet overwhelming. Just be sure to record all your steps as you go through the process and consult with professionals whenever you feel you need some sage advice. You can also search the US Small Business Administration for any further information you may require.
We wish you the best in launching your business in the US as a foreigner!
