Can a Foreign National Start a U.S. Business?

Table of Content

Yes. A foreign national can legally start a business in the United States. You do not need to be a U.S. citizen or green card holder. U.S. federal law does not restrict business ownership based on immigration status.

However, forming a business alone does not grant the right to live or work in the United States. If you want to manage the business from inside the U.S., you must qualify for a visa that permits that activity.

The most direct path is the E-2 Treaty Investor visa. This visa allows citizens of certain countries to live in the U.S. to develop and direct a business they have invested in. To qualify, you must:

  • Be a citizen of a country with a valid treaty with the U.S.
  • Invest a substantial amount of personal funds in a real, operating U.S. business
  • Own at least 50 percent or hold operational control
  • Show the business will generate more than marginal income
  • Be involved in daily management

There is no fixed investment amount required for the E-2 visa. However, your investment must be large enough to fully fund the business and begin operations. It must be a personal financial commitment to a real, active enterprise. Speculative or passive investments do not qualify.

To establish your business, you may form a Limited Liability Company (LLC) or a C Corporation. Both allow full foreign ownership. S Corporations are not permitted for non-resident owners.

Once your company is formed, you may apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) using Form SS-4. If you do not have a Social Security Number or ITIN, you can still apply by writing “Foreign” on the form, as instructed by the IRS.

Any information contained in this website is provided for general guidance only, not intended to be a source of legal advice. As such, any unlawful use is strictly prohibited. Prior success does not guarantee same result.

Related Posts

I NEED HELP TO PREPARE MY VISA APPLICATION