The steps for starting a business in the United States can be either extremely difficult or relatively easy to take depending on how you choose to take them, or more precisely, with whom you choose to take them. If you dream about starting a business in the greatest economy in the world, to make sure it does not become a nightmare, you should work with an experienced Business Immigration Lawyer who knows how to successfully and smoothly take each of the following steps:
Step 1: Choose a Business Structure
The first step you need to take is to choose the type of business structure that best fits your needs, goals, and circumstances. As a foreigner starting a business in the United States, however, there are limitations on the types of business entities you may form. For example, if you are not a resident, you may not form an S Corporation, as each of the shareholders of this type of entity must be either a citizen of the United States or a permanent resident.
Generally, foreign entrepreneurs choose the C Corporation and the Limited Liability Company (LLC) structures because of the personal liability protection and tax flexibility these entities offer. Both have pros and cons, so depending on your needs, goals, and circumstances, your lawyer will help you choose the best structure.
Step 2: Officially Form Your Business
Once you choose the right type of business structure, the next step you need to take is to form your business entity. Forming an LLC can be drastically easier than forming a C Corporation. In addition, corporations have far more maintenance requirements than LLCs. Nevertheless, no matter what type of business entity you choose to form, you should never even consider forming it without help, as business formation mistakes can be astonishingly easy to make. The best way to ensure that you have every required document, that you pay all the required fees, and that you comply with all applicable laws is to work with an experienced Business Formation Lawyer.
Step 3: Obtain an Employer Identification Number
The IRS requires all businesses in the United States to obtain a Taxpayer Identification Number (TIN). LLCs and corporations, however, must obtain an Employer Identification Number (EIN). Since 2019, this step became a little tricky to take, as the IRS began to only allow individuals who have an Individual Taxpayer Identification Number or a Social Security Number to file EIN applications, and an entity cannot use an existing EIN to obtain an additional one. Because foreigners do not have Social Security Numbers, they need to apply for an Individual Taxpayer Identification Number. After doing so, they can apply for an EIN.
Step 4: Open a U.S. Business Bank Account
To create a business entity in the United States, you must open a U.S. business bank account. Unfortunately, opening bank accounts in the U.S. has become more difficult for foreigners since the USA Patriot Act was passed; however, it can be accomplished as long as you can provide the required documentation.
Step 5: Obtain the Required Permits and Licenses
Businesses owned by foreigners must apply for permits and licenses that are relative to their specific industry, activities, and geographical area, just like any other U.S. business. Of course, this can be either hard or easy to do depending on the lawyer you hire to help you. If you hire Attorney Romy B. Jurado, the process can be a walk in the park.
Depending on the type of business you choose to start and where you start it, you will need to apply for specific state, city, and county licenses and permits, each of which has its own application process, fees, and processing time. This is why it is best to work with someone who understands the application process and has applied for hundreds of business licenses and permits over the years.
Taking the Steps for Starting a Business in the United States Can Be Easy
The key to successfully starting a business in the United States as a foreigner is to work with the right business lawyer – someone who can bring not only knowledge to the table but also experience. Attorney Romy B. Jurado has helped numerous foreign entrepreneurs start the business of their dreams in the United States and can certainly help you start yours.
If you are looking to start a business in the United States, give Business Immigration Attorney Romy B. Jurado a call today at (305) 921-0976 or send an email to Romy@juradolawfirm.com to schedule an initial consultation.