The United States is one of the most attractive destinations in the world for entrepreneurs. With its massive market, strong legal protections, and access to funding, many non-U.S. citizens ask the question: Can I open a business in the U.S. if I’m not a citizen? The good news is—yes, you can.
In this guide, we’ll explain how non-residents and foreign nationals can legally start a business in the United States, what business structures are available, and what legal requirements you need to know before launching your venture.
Is It Legal for Non-U.S. Citizens to Start a Business in the United States?
Yes, it is 100% legal for a foreign national to open a business in the U.S., even if you don’t have a green card or permanent residency. The U.S. government allows non-residents to form and own American companies, including Limited Liability Companies (LLCs) and corporations (C-Corps), with no requirement to be a U.S. citizen or to physically live in the country.
However, while you can own a U.S. business, managing or working for your business while inside the U.S. requires proper immigration status or work authorization. This distinction is crucial and often misunderstood.
Common Business Structures for Foreign Entrepreneurs
Limited Liability Company (LLC)
Forming an LLC is one of the most popular choices for foreign business owners. It offers flexibility, limited personal liability, and a relatively simple registration process. Many non-citizens form U.S.-based LLCs to operate online businesses, serve U.S. clients, or open U.S. bank accounts.
C-Corporation
A C-Corp is also a common choice, especially for startups that plan to raise venture capital or go public. C-Corps allow for unlimited foreign ownership and are often the preferred structure for tech startups and high-growth companies.
Steps to Open a Business in the U.S. as a Non-Citizen
1. Choose a State to Register Your Business
Delaware, Wyoming, and Nevada are popular among foreign entrepreneurs due to their business-friendly laws and low fees. However, if you plan to physically operate in a specific state, you should register your business there.
2. Select Your Business Structure
Most foreign founders choose between an LLC or a C-Corp. Your decision depends on your business model, tax goals, and long-term plans.
3. Appoint a Registered Agent
Every U.S. business must have a registered agent—a person or service with a U.S. address authorized to receive legal documents. Many foreign-owned businesses hire a registered agent service to fulfill this role.
4. File Formation Documents
Submit the required documents (such as the Articles of Organization for LLCs or Articles of Incorporation for C-Corps) to the Secretary of State’s office where you are registering.
You can find each state’s business registration portal here:
👉 National Association of Secretaries of State
5. Apply for an EIN (Employer Identification Number)
An EIN is required to open a U.S. business bank account and file taxes. Foreign applicants can apply for an EIN from the IRS using Form SS-4.
6. Open a U.S. Business Bank Account
To open a business bank account, you’ll typically need:
- A copy of your company’s formation documents
- An EIN
- A U.S. business address
Some banks require you to visit in person, but a growing number of fintech services offer remote banking options for foreign founders.
Can I Work in the U.S. for My Business?
Owning a business does not automatically grant you the right to work in the U.S. If you plan to be actively involved in your company while residing in the U.S., you will need a valid visa that permits work.
Some options include:
- E-2 Treaty Investor Visa (for nationals of eligible countries)
- L-1 Visa (for transferring employees from a foreign branch)
- O-1 Visa (for individuals with extraordinary ability)
- H-1B Visa (for skilled workers—requires sponsorship)
It’s best to consult with an immigration attorney if you intend to live and work in the U.S. while running your business.
Pros of Starting a Business in the U.S. as a Foreigner
- Access to the U.S. market and consumers
- Strong legal protections and intellectual property rights
- Ability to build trust with U.S. clients
- Easier to access U.S. banking, payment processors, and funding
Potential Challenges
- U.S. tax filing and compliance can be complex for foreign-owned entities
- Difficulty obtaining a visa if you wish to work inside the country
- Opening a bank account may require in-person visits
- Maintaining a registered U.S. business address
Frequently Asked Questions
Q: Do I need a Social Security Number to open a U.S. business?
A: No. You do not need a Social Security Number (SSN) to start a business. However, you will need an EIN and may need to provide other forms of identification when opening a bank account.
Q: Can I start a business while on a tourist visa (B-1/B-2)?
A: While you can start a business and own it, you cannot work for it or engage in business operations while on a tourist visa. Doing so can violate your immigration status.
Q: Do I need to hire U.S. citizens for my business?
A: No, there is no requirement to hire U.S. citizens, but you must comply with U.S. labor laws and ensure employees are authorized to work in the U.S.
Final Thoughts
Yes, a non-U.S. citizen can legally open a business in the United States, even without residing in the country. By choosing the right business structure, filing the appropriate documents, and understanding the legal and tax implications, foreign entrepreneurs can successfully launch and grow their businesses in the U.S.
However, it’s essential to separate business ownership from work authorization. If you plan to manage your business from inside the United States, consult with an immigration attorney to explore your visa options.
For official guidance, always refer to the USCIS and IRS websites.