Starting a U.S. Business as a Non-Resident
Many people mistakenly believe that only U.S. residents can engage in U.S. business ventures. But that is not true. Simply put, there is no American law that prevents a non-resident from forming a new U.S. company or acquiring ownership in an existing U.S. company. Not only can a non-resident form a U.S. company, even a foreign company can form a U.S. company.
While there is no residency-based restriction on formation of companies, there are many U.S. state and federal laws that need to be taken into account to determine the appropriate corporate structure and compliance with tax and other business matters. And some of these items are more complicated or intensive for non-residents, so it is important to contact an experienced professional to discuss how to handle them.
If you are a non-resident that has opened up a U.S. business, you can manage the business and operate it while in your home country. However, at some point, you will likely consider visiting the U.S. to attend to certain business matters. To do so, there are some important considerations to be aware of:
1. What type of non-immigrant visa is appropriate for you?
For foreign entrepreneurs or investors, the quickest and easiest way to enter the U.S. to perform certain business activities is to obtain the B-1 Business Visitor Visa. In order to obtain this visa, you must show the following:
- The purpose of your travel to the U.S. is business-oriented, but does not entail actual employment or labor for hire;
- Your visit to the U.S. is for a specific, limited period of time;
- You maintain your permanent place of residence outside the U.S.; and
- You have sufficient funds to pay for all your expenses while in the U.S.
2. With your non-immigrant visa, what types of business activities are (and are not) allowed?
If you enter the U.S. on a B-1 visa, the most important restriction to keep in mind is that you cannot manage or work for your business while here. Even if you do not get paid a salary, you still cannot perform any management or work activity for your business without employment authorization from the U.S. government. And, with the B-1 visa, you are not eligible for employment authorization.
So, what can you do in the U.S. on a B-1 visa? You can research possible business sites or lease office space. You can open a bank account. You can attend a conference (as long as you are not receiving any income from a U.S. company to do so). You can interview or hire staff. You can develop business relationships. And the list goes on – There are many business activities that you may undertake in the U.S. while on the B-1 visa, as long as you are not managing or running the actual operations during your visit.
If you are a non-resident seeking to establish a U.S. business, please contact Abbas Law PLLC to guide you through the process.
