A non U.S citizen starting a business venture in America
A foreign citizen of the U.S. can start a business with the help of E-2 treaty investor visa. An investment is said to be sufficient if it is $50,000 and enough if it is $100,000. The owner along with the members of his or her family can stay in the U.S. while the business is in progress.
Meeting the requirements of the E-2 visa is not very easy. The U.S State Department requires that an E-2 visa applicant has enough money to invest in his or her new business which is sufficient to fund and successfully run the business. It is very important to prove that your business will contribute some profit to the local economy by providing job opportunities to many people.
E-2 visa is renewable every two to five years. While renewing the visa the business owner is supposed to prove that his or her business is contributing to the economic development. This visa which is cheaper compared to the others allows a foreign citizen to come to the United States and start a new business.
About E-2 Visa
This visa gives an option that is open to foreign people with substantial money to enter the U.S without actually immigrating. The E-2 Investor Visa is a non-immigrant visa which permits a foreign national to enter and start a business in the U.S depending on an investment. This visa is renewable and there is no maximum limit to its renewal. Investor visas are available only to the treaty nations. However once a foreign investor enters the U.S under this category, he or she can look forward for other opportunities like applying for U.S. citizenship. When the business concludes, investors must return to their native country or change their visa status.
Frequently Asked Questions related to Starting a Business
The foreign citizens who wish to start a business in the U.S. face many challenges. The frequently asked questions related to starting and running a company in the United States of America is as follows:
Will I be able to own a company in U.S even if don't have green card?
Yes. The steps for a foreign national to start a company are same as that for a U.S. citizen. It is not required to have a green card or be a U.S citizen to own a business venture in the United States.
Which business entity will be convenient for a person of foreign nationality to set-up?
For pass-through profit distributions, a foreign national can set up a limited liability company (LLC). The U.S. law allows a foreign national to own shares in a C corporation and does not permit these foreigners to own shares in an S corporation. The profits or dividends gained by a C corporation are subjected to double taxation. Therefore most of the foreign nationals opt to set-up a Limited Liability Company.
Can I work in the United States even if I own a corporation or LLC?
No, you need to have a work permit visa or a green card to work in the U.S.
How long does it take to process incorporation?
The time to process incorporation may vary between different states and may alter depending on the load of work at the state office. Foreign nationals will have to wait usually for 10 to 20 days to get their EIN. The process to obtain a Tax ID for a foreign national has to be filed with a special IRS unit which results in the actual delay of the process. The process will be commenced only after all the relevant documents have been approved by the state.
Can Active Filings assist me open a checking account?
No, you have to walk in to any bank and provide your identity proof, a copy of your articles of incorporation or organization and the company's tax ID (EIN).
Can I set-up a branch for my company?
There is no entity called Branch. You will have to incorporate a business here and then form relationships through internal resolutions and ownership.