Starting a business is surely exciting yet at the same time scary endeavor. But when it happens to be in what’s regarded as the land of opportunity, then it’s an even bigger step. As a foreigner, it can be especially challenging to understand all the rules and regulations in order to get your business going. The good news, however, is that knowledge is always the answer in such cases. Foreign business is more than welcome here, so let’s take a look at the advice that will help you start a company in the US. Buckle up and get ready to learn!
Learn about all the available options before you start your business in the US
Before we delve any deeper into more detailed information, we need to start with the basics. As a foreigner, you need to know what type of companies you are allowed to launch here in the US. Basically, there are three types of corporate entities you should be aware of:
- Limited Liability Company or simply known as LLC are treated as partnerships as they are registered with a state. Do you already have a company in your home state? Then, opening a second office location in NYC, for example, is a so-called foreign registration.
- C corporation or C-Corp is the most common entity when it comes to foreigners’ startups. Forming a c-corp is great if you’re looking for outside venture funding.
- S-Corporations, which can easily be confused with c-corps, but are actually not available to foreigners. This is because they require that all shareholders be citizens and permanent residents of the US.
In case these terms are new for you, we suggest you look them up and research further. In any case, you can seek assistance from professional lawyers online. You can do it from the comfort of your home, it’s as easy as selling goods from abroad with some help.
All about visas you need in order to start a company in the US
Of course, as a non-citizen, you’ll need to obtain a visa in order to start a company in the US. In this case, you will be presented with two choices. The first among them is the E-2 visa, which is ideal for your situation. This visa will allow you to enter the county and stay from three months up to five years. The condition, however, is to invest a certain amount of money, usually no less than $100,000. This way, you’ll be able to work legally, travel freely in and out of state, and start a company in the US. Just keep in mind that submitting a business plan is a great way to get approved, and there will be no problems.
The other option is the EB-5 visa. This is another type of employment-based visas that works for foreign investors quite well. However, the catch is that it requires more money upfront, starting from half a million dollars. If you choose this type of visa, it means you will be granted permanent residency in the country. Once you can enter the country, a moving company like Four Winds Saudi Arabia can move you effortlessly and you can start your business journey.
Registering the company
Here comes possibly the most daunting task in the entire process. This is the part where you need to be aware of each step of the way and study the paperwork. It’s a bit like learning about the best moving practices to know before moving a business to the US. No matter how much research you’ve done, you still can’t do the job the way professional movers can. Still, you can try and figure out the basic paperwork without a lawyer, or at least try to do so. In order to register the company name, you need to have all the registration documents in place. The requirements will vary from place to place, but it comes down to following many procedures. For example, you’ll have to file an incorporation report, obtain EIN, and get SIC codes.
Other than the regular paperwork, you’ll have to list a registered agent too. This is someone who will be present in the place where you decide to start a company in the US and who will be authorized by you. They are crucial when you are out of the US and will be able to sign and accept all documents on your behalf.
Hire a lawyer to help you with the paperwork
We’ve mentioned the paperwork which may leave you confused and unsure whether everything’s going according to plan. And while you can take a crash course and figure it out by yourself, professional advice is immensely helpful. As mentioned above, if movers provide a simple way to transport goods, why would you go the DIY route? The same goes for this issue as well. After all, getting the documentation part just right is essential to kick-starting the business the right way. Never underestimate how much the business formation stage can be a crucial stage in the whole process.
Not everyone has the time to meddle with the documents and that’s perfectly alright. Maybe you’re busy developing other stages of this business endeavor and have no time to spare. That’s why you can hire an attorney who will be in charge of the bureaucracy part. This is especially the case if you plan to start a business in metropolitan areas. One of the benefits of expanding your business to NYC or LA is the endless opportunities for growth. In these competitive areas, however, local help is very appreciated, so think about it.
Last but not least, determining where your offices are going to be located is another very important strategic point. When looking for just the right stop, ask yourself whether you’ll be meeting clients or working online. If it’s a kind of job where you need to be in contact with clients, then location matters much more. Depending on your budget, you need to take office costs into account as well. Make sure that you start a company in the US close to your suppliers and distributors. Seeing as you’re just starting up, finding a place in a growing business hub might be a great idea. It’s all about building a name and a recognizable image. Never underestimate the importance of location – see where your competitors are located as well. Also, make sure to consider the future needs of the company to get the bigger picture.