Starting a Business as an Immigrant

The American dream of entrepreneurship is alive and well, and immigrants continue to play a vital role in driving innovation and economic growth in the United States. However, starting a business as an immigrant involves unique legal considerations that require careful planning and professional guidance.

Whether you're here on a work visa, have a green card, or are exploring entrepreneurial pathways to immigration, this guide will help you understand the key legal requirements for starting and operating a business in the U.S.

Can Immigrants Own Businesses in the U.S.?

The short answer is yes—there is no law prohibiting non-citizens from owning a business in the United States. However, your ability to actively work in and operate that business depends on your immigration status.

Green Card Holders: Can work in any capacity, including owning and operating their own business
H-1B Visa Holders: May own a business but cannot work for it unless sponsored by that company
E-2 Treaty Investors: Can own and operate a business with significant investment
L-1 Visa Holders: Can work for a U.S. affiliate of their foreign employer
Undocumented Immigrants: Can form an LLC or corporation but cannot legally work

Steps to Start Your Business

Choose Your Business Structure

Decide between an LLC, Corporation (C-Corp or S-Corp), or Sole Proprietorship. Each has different tax implications and liability protections.

Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS. This is required for tax purposes and opening business bank accounts.

Register Your Business

File the necessary paperwork with your state's Secretary of State office. Requirements vary by state and business type.

Open a Business Bank Account

Separate your personal and business finances. You'll need your EIN, business formation documents, and personal identification.

Obtain Necessary Licenses and Permits

Research federal, state, and local licensing requirements for your specific industry and location.

Immigration Pathways for Entrepreneurs

If you're looking to start a business and establish immigration status, several visa categories may be available:

E-2 Treaty Investor Visa: Requires substantial investment in a U.S. business and nationality from a treaty country
EB-5 Immigrant Investor: Green card through investment of $800,000-$1,050,000 and job creation
O-1 Extraordinary Ability: For individuals with extraordinary achievements in their field
L-1 Intracompany Transfer: For executives/managers transferring from a foreign company

Tax Considerations

Understanding your tax obligations is crucial for business success. Key considerations include:

All business income is subject to U.S. taxation
Non-resident aliens may have different filing requirements
State taxes vary significantly by location
Self-employment taxes apply to many business owners
Quarterly estimated tax payments may be required

Our team at TheBajLawGroup PLLC specializes in helping immigrant entrepreneurs navigate both the business formation process and immigration considerations. Contact us for a comprehensive consultation to discuss your entrepreneurial goals.

ITIN vs. SSN for Founders

You do not need a Social Security Number to own a US LLC. You can obtain an ITIN (Individual Taxpayer Identification Number) to file taxes. You can also get an EIN (Employer ID Number) for the company without an SSN (though the process is manual via fax to the IRS).

The E-2 Investor Visa

For nationals of treaty countries, the E-2 visa is the gold standard for entrepreneurs. It requires a "substantial" investment (usually $80k-$150k+) in a US business. Unlike the EB-5 ($800k+), it is accessible to small business owners. The catch? It is a non-immigrant visa; it does not directly lead to a Green Card.

Frequently Asked Questions

Can I run my US business from abroad?

Yes. You can be the owner/shareholder of a US LLC while living in India or Canada. You just cannot be physically working inside the US without a visa.

H-1B for Founders?

Can you sponsor your own H-1B? Historically, no. But under current Biden administration rules, it is *possible* if there is a valid "Employer-Employee Relationship."

This means you cannot have "controlling interest" over your own firing. You must have a Board of Directors that has the power to fire you. If you own 100% of the LLC and no one can fire you, you cannot get an H-1B. You need an L-1 or O-1 instead.

Starting a Business as an Immigrant: Legal Considerations