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.