Starting a business in the United States as an immigrant or non-resident can feel like a big task, but it’s also a real opportunity to build something of your own. There’s a lot to learn, especially if you’re unfamiliar with the rules and steps. The good news is that with clear information, the process can be more manageable than you think.
At Remitly, we understand the challenges that come with setting up a business in a new country. That’s why we’ve put together this guide to walk you through the basics, like choosing a state, registering your business, and opening a bank account. You’ll also find helpful tips on different business structures, partnerships, and things to keep in mind as a foreign entrepreneur.
How to start a business in the US
If you’re planning on opening a business in the United States, there are a few key things to know before you get started. The process can feel overwhelming for many immigrants and non-residents, but with some guidance, you can take steps toward building your own company in the US.
What to know before getting started
The United States has a huge and varied economy, with opportunities that look different depending on where you’re based. Big cities might offer more foot traffic and networking, while smaller towns can provide lower costs and less competition. No matter the location, there’s a wide range of markets and customers to reach.
It’s also helpful to understand how things like taxes and rules can vary across states. Some areas have extra costs like franchise taxes, while others are known for being more business-friendly. Knowing these differences ahead of time makes it easier to choose the right place to set up and helps avoid surprises later on.
Understanding the legal side
Getting your business off the ground means following a few legal steps, especially if you’re a non-resident. Your immigration status can play a role here, so it’s worth exploring options like investor visas or work permits that allow you to live and run your business in the US.
You’ll also need to consider your business structure and any licenses your industry might require. Whether you form an LLC, corporation, or partnership, each option comes with its own tax rules and responsibilities.
Setting up your business step by step
While the exact process varies by state, there are basic steps most new business owners in the US will need to follow.
- Choose a business structure: Common options include sole proprietorship, partnership, LLC, or corporation.
- Pick and register your business name: If it’s different from your legal name, you may need to file a “doing business as” (DBA) name.
- Apply for any required licenses or permits: Some industries require specific state or local licenses before you begin operations.
- Open a business bank account: Keeping personal and business finances separate makes taxes and bookkeeping easier.
- Meet annual state requirements: Many states ask for a yearly report or a small fee to keep your business in good standing.
Factors to consider when choosing a location
Where you choose to set up your business in the US can affect everything from taxes to customer access. It’s not just about finding the cheapest option, it’s about choosing the place that gives your business the best chance to grow and run smoothly.
Locations that make it easier to run a business
Some states make it easier for business owners to get started, thanks to simpler paperwork and lower taxes. For example, Delaware is popular for its fair and predictable corporate laws, while Nevada and Wyoming don’t charge state income tax and have fewer regulations that business owners need to follow.
These states can be good options if you plan to register your company in one place but operate elsewhere. However, it’s important to look beyond just the tax rate. Consider how easy it is to manage your business in that state and whether it makes sense for your long-term goals.
Local market potential and economic stability
Taxes and regulations are only part of the picture. It’s also important to think about where your customers are, how easy it is to find skilled workers, and what the business climate looks like in your industry. States like Florida, Texas, and Tennessee have strong economies and attract all kinds of businesses, especially in fields like tech, energy, and finance.
While big cities in these states offer opportunities and connections, they can also come with higher costs. On the other hand, smaller cities or less crowded states might give you access to specific markets with fewer competitors and lower day-to-day expenses.
Cost of opening and running your business
Startup costs can vary a lot depending on where you choose to open your business. Rent and utility prices are much higher in places like San Francisco or New York City compared to smaller towns or rural areas. It’s worth weighing the benefits of being in a busy, well-known location against the reality of higher monthly bills.
Other costs to consider include registration fees, the cost of hiring professionals (such as lawyers or accountants), and the frequency with which you’ll need to file documents or pay local taxes. These small details can add up, so planning ahead can help keep your budget on track.
Steps to form a company
Once you’ve chosen where to set up your business, the next step is making it official. This part may involve a few forms and fees, but with a little preparation, it’s something many immigrants and first-time business owners handle successfully.
Getting your business registered
To make your business official in most states, you’ll need to register it with the Secretary of State. This usually means submitting some basic paperwork like the Articles of Organization for an LLC or the Articles of Incorporation for a corporation, along with a filing fee that varies by state. You’ll also need to choose a registered agent, which is someone who’s allowed to receive legal documents on your behalf.
Many people complete this step online through their state’s website. Others prefer using a legal or filing service, especially if they’re dealing with more complicated business needs. Once this is done, your company is officially recognized as a legal business in the US.
Choosing the right business structure
The structure you choose for your business will affect how you pay taxes, how much personal risk you take on, and how your business is managed. There’s no one-size-fits-all answer. It depends on your goals, how many people are involved, and what kind of protection you want for your personal assets.
- Sole proprietorship: Simple to set up if you’re working alone, but it doesn’t separate your personal finances from your business.
- Partnership: Good for businesses with two or more owners. You can choose between a general or limited partnership, depending on how involved each person is.
- Limited Liability Company (LLC): A popular choice for small businesses. It protects your personal assets and gives you flexibility in how you’re taxed.
- Corporation (such as a C corp): A more complex structure that creates a separate legal entity. It can issue shares, attract investors, and limit personal liability.
It’s a good idea to talk to a legal or tax expert before deciding, especially if you plan to grow your business or take on partners or investors.
Getting the right licenses and permits
Before you launch your business, you’ll want to make sure you have the proper licenses and permits to run your business legally. What you need will depend on what type of business you’re starting and where it’s located.
If you’re working from a physical location like a shop, office, or warehouse, you might also need zoning approval from your local government. If your business involves importing or exporting goods, additional permits may be required.
Best countries and states for starting a business
If you’re still deciding where to launch your business, you’re not alone. Whether you’re comparing locations within the US or thinking about options abroad, some places make it much easier to get started than others.
Top countries known for business-friendly environments
If you’re open to starting your business outside the United States, there are a few countries that stand out.
- Singapore: Often ranked at the top of global business-friendly lists, Singapore is praised for its low tax rates, fast company registration process, and strong legal protections for business owners.
- New Zealand: Regularly scores high for ease of starting a business, with online registration and minimal government delays.
- Denmark: Offers a well-organized legal system, reliable infrastructure, and strong support for small businesses.
- Luxembourg: A small but powerful economy with strong banking services, multilingual business culture, and easy access to the European market.
- Switzerland: Known for its political stability, efficient bureaucracy, and world-class financial services, Switzerland offers a safe and well-regulated environment for new businesses.
Best US states for starting a business
If you’re planning to build your business in the United States, it’s worth knowing that some states are more welcoming to new businesses than others.
- Texas: With no state income tax and a large, diverse population, Texas offers a strong customer base and relatively simple registration requirements.
- Florida: Florida combines low taxes with a fast-growing population and is especially friendly to small businesses in tourism, hospitality, and tech.
- Utah: Known for its booming startup scene and affordable cost of living, Utah is ideal for entrepreneurs looking to grow in tech or creative industries.
- North Carolina: A rising destination for entrepreneurs, with affordable office space, strong university talent, and a growing tech and biotech sector.
- Georgia: Atlanta and surrounding areas offer great infrastructure, access to global markets, and programs to support minority- and immigrant-owned businesses.
- Colorado: Colorado mixes a supportive small business culture with access to skilled workers, especially in clean energy, outdoor products, and tech.
How to compare your options
Trying to decide where your business idea will do best? Trusted organizations like the World Bank, the US Chamber of Commerce, and the World Economic Forum publish helpful rankings every year.
These reports look at things like how fast you can register a company, how much you’ll pay in taxes, and how easy it is to follow local regulations. They can give you a clearer idea of which locations offer the best chance of success.
Managing international expansion and foreign qualification
If you’re thinking about growing your business beyond borders, either expanding your US-based business abroad or bringing an international business into the US, there are a few extra steps to keep in mind.
What to consider when expanding to another country
Expanding to another country means learning how that country works when it comes to taxes, hiring, and selling your product or service. Every place has its own rules, so doing some early research can help you avoid unexpected delays or costs.
In some cases, you’ll need to officially register your business in the new country or region. Depending on your goals, it might make more sense to create a local branch or subsidiary rather than running everything from your original location. Don’t forget to consider cultural differences; what works in the US might need a few tweaks to connect with customers in other parts of the world.
Registering your business in other US states
If your business is registered in one state, but you plan to operate in another, you’ll likely need to apply for what’s called foreign qualification. This doesn’t mean you’re taking your business abroad; it just means you’re expanding within the US and across state lines.
Each state has its own rules, but the process usually involves showing that your company is in good standing in your home state, choosing a registered agent for the new state, and paying a filing fee. It’s a straightforward process that helps ensure your business is recognized and protected in each new state you operate in.
Tips for global business expansion
Expanding internationally, or even just to a new state, can get complicated, so having a legal or tax advisor on your side can make a big difference. They can help you handle the paperwork, stay compliant, and avoid common mistakes that cost time and money.
It’s also smart to connect with local partners who understand the market you’re entering. They can offer insight into customer preferences and legal requirements. When managing finances across borders, keep an eye on currency exchange rates and use reliable tools like Remitly to send and receive money securely and affordably.
FAQs
Can I start a business in the US if I’m not a citizen?
Yes, you can. Many non-residents successfully start businesses in the US, though you may need a specific visa depending on your situation. It’s also important to choose the right business structure and follow local rules for registration and taxes.
What’s the first step to starting a business in the US?
Start by deciding which state you want to register in and choosing a business structure, like an LLC or corporation. From there, you’ll file paperwork, pay a registration fee, and get any licenses you need for your type of business.
Can I expand my business from the US to another country?
Yes, many entrepreneurs expand globally. You’ll need to learn the local laws, register your business there, and sometimes adjust your structure or brand to fit local preferences.
Can I register a business in more than one US state?
You’ll first register your business in one state, then apply for “foreign qualification” in any other state where you want to operate. Each state has its own rules and fees, so check local requirements before expanding.
What does foreign qualification mean in the US?
If your business is registered in one state, but you want to operate in another, you’ll need to file for foreign qualification. It’s a legal way to do business across state lines without creating a brand-new company.