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

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.

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