How to Start a Business in the USA as a Non-Resident: Step-by-Step Guide

Many entrepreneurs believe that starting a business in the USA as a non-resident is impossible, expensive, or overly complicated. In reality, the process is simple if you follow the right steps and use proven strategies.

Here is a complete guide for foreigners who want to register a company in the United States, open a bank account, and stay compliant with US tax regulations.

Step 1. Define Your Business Goals

Before incorporation, ask yourself:

Do you plan to sell only in the US or globally?
Will it be an online store, service business, IT project, or investment venture?
Do you want to combine business with immigration goals?
Will you live abroad while managing your US company?

💡 Tip: If your clients are international, choose a state with low taxes and minimal reporting requirements.

Step 2. Choose a Business Structure

For non-residents, the most common company types are:

LLC (Limited Liability Company) — simple to manage, pass-through taxation, suitable for 90% of entrepreneurs.
C-Corporation — ideal for startups that want to raise investments.
S-Corporation — available only to US residents.

💡 Recommendation: Freelancers, Amazon sellers, and online service providers usually benefit most from forming an LLC.

Step 3. Select a State

Your choice of state affects taxes, annual fees, and compliance rules.

Best states for non-residents:

Wyoming — low costs, privacy, simple compliance.
Delaware — popular with investors, flexible corporate law.
Nevada — no state corporate income tax.

⚠️ Important: If you incorporate in one state but operate in another, you may need to pay taxes in both.

Step 4. Appoint a Registered Agent

A Registered Agent is required for all companies in the US.

The agent must have a physical address in the state of registration.
Service fee is usually $50–100 per year.

Step 5. File Company Formation Documents

Steps include:

Filing Articles of Organization (LLC) or Articles of Incorporation (Corporation).
Paying the state filing fee ($50–500).
Receiving a Certificate of Formation confirming your company is active.

🎉 Congratulations — your US business is officially established!

Step 6. Obtain EIN

EIN (Employer Identification Number) is required for taxes and banking.

Non-residents apply using IRS Form SS-4.
You can do it yourself for free or hire an agent for $50–150.

Step 7. Open a Business Bank Account

This is often the hardest step for non-residents, as traditional banks require in-person visits.

Alternatives include:

Mercury — online banking for startups.
Wise — multi-currency account.
Payoneer — great for receiving global payments.

💡 Pro tip: If you plan a trip to the US, book a bank appointment in advance and open your account in person.

Step 8. Stay Compliant with Taxes

Even if your company earns no revenue, you must file annual reports.

Requirements include:

Filing a tax return with the IRS.
Paying federal, state, and local taxes.
Keeping accounting records.

⚖️ Failure to comply may result in penalties or even company dissolution.

Conclusion

Starting a business in the USA as a foreigner is not only possible but also efficient. You can form an LLC or Corporation online, obtain an EIN, and even manage everything without being physically present in the US.

✅ To avoid mistakes and penalties, it’s crucial to file taxes correctly and on time.
💡 We provide full-service support: company formation, EIN, banking, accounting, and tax filing for non-residents.

ELEMENT ACCOUNTING