To start up a business in the U.S. as an immigrant is possible. However, there are requirements that you must complete for developing a company and steps that you must follow to achieve them.
Although many Latin immigrants arrived in the U.S. with solid entrepreneurial skills and established business ideas, sometimes the fact that they don't know how to deal with proceedings, delays the settlement of their business. Also, usually immigrants ignore that there is no need to possess a Green Card or even residence permission, to register their entrepreneurship in this country.
This article is a guide in 5 steps for those immigrant entrepreneurs who want to start a successful business in the U.S.
Requirements for creating a company in the U.S.
A usual mistake that many immigrants make is to inscribe their business under someone else's name. Often, people do not know that is possible to start a business without possessing a solid migration status like a Green Card. The U.S. government not only allows you to ride small businesses but also, the immigrants with residence permits will be able to establish business structures such as LLC or C corporation.
The company can be owned by an immigrant even without having a social security number. Businesses owned by an immigrant can regularly operate, open bank accounts, and be contractors and subcontractors as long as the company is properly registered. Thus, there are certain requirements to open a business in the United States as an immigrant, that although specific to each state, generally work the same.
Take a look at the steps that you must follow for starting your own business in the U.S.!
Step 1: Conceive your business idea
To open a profitable business in 2023, you should first do a market study. Firstly you must identify where you will establish your business. This decision impacts the rate of taxes you have to pay, the legal obligations you must follow, and your profits. Next, you should study who your potential audience is, and what companies are doing similar business ideas to yours in your previews identified as a potential area.
Then it is required to establish your business plan focused on operating and growing your new company. It allows you to calculate the budget you need to start.
At the end of this stage: the conception of business, there is the name. You must choose a name that identifies your brand, and verify that it is not already in use.
Step 2: Select the Business Structure
It is important to be objective in choosing the sort of business you want and can start because there are different legal and business structures depending on the funds and the human resources you dispose of, as well as the needs of your potential public.
The taxes you will pay, initial financing, registration requirements, and personal liability will depend on the choice of your business structure. Thus, your business can be:
- A Sole Proprietorship,
- a Society,
- a Limited Liability Company (LLC),
- a Corporation,
- or a Cooperative.
You should consult here to learn the advantages and disadvantages of each of these business structures.
Step 3: Register your company and obtain tax identification
A sole proprietorship is best suited to small businesses with low risk and low profits. The name of a sole proprietorship business is not required to be registered if it is committing its entrepreneurial activity under the name of the proprietor. In some cases, it is not even necessary to register the business.
However, the owner has to be registered as a taxpayer with a Tax Payer Personal Identification Number (ITIN). This is a mandatory step for every business. The Internal Revenue Service (IRS) requires you to fill out the form W-7 and to provide documents as a foreigner to assign an ITIN.
On the other hand, if you decide to create your brand, then you must register the name with the United States Patent and Trademark Office. Also, you have to obtain a tax ID for your business. The Employer Identification Number (EIN) is your federal tax ID. This number allows your company to receive payments, open bank accounts, operate the business, and report your taxes.
Step 4: Request the necessary licenses and permits
For registering your business in the United States you must request certain permissions and licences. Commercial licenses are required to develop some commercial activities and are issued by the state. However, in all the States may not be necessary to present Commercial licenses. for the same activities. Also, some of them do not require a Commercial license. You should research this, at the time that you were thinking of what and where business to settle.
For example, in Florida, graphic designers, journalists, marketers, computer and systems analysis technicians, and artists can work without having any commercial license from the Florida Department of Business and Professional Regulation.
The permissions, on the other hand, are granted locally and respond to the standards established for the type of business you are starting. These depend on:
- The nature of the company (agriculture, food, technological development, transportation, marketing, etc.)
- The location of the business (home, office, or truck)
The most common permits to open a business are:
- Business License
- Fire Department Permit
- Signage Permit
- County Permits
- State Licenses
- Sales Tax License
- Health Department Permit
Step 5: Create a bank account for your business
A commercial bank account is an essential tool for starting a business in the U.S. Although you can open it easily in any bank, we recommend researching the commissions and benefits that may be obtained in any bank. This way you will be able to make the best selection for your business bank account.
Having a bank account as a business offers some benefits, including:
- Personal liability protection
- Professionalism and preparation
- Optimize your commercial services: You may accept credit and debit card payments from customers.
- Create checking and savings.
Additional recommendations
In addition to the steps mentioned above, we recommend you to:
- Research all the Federal and Local laws and regulations that may affect your idea of business avoiding legal problems.
- Get legal and accounting advice: A lawyer or accountant can help you to comply with all applicable laws and regulations.
- Build relationships with other entrepreneurs: Networking with other entrepreneurs can help you get support and advice.
