Tax Road Map for the Foreigner Who Wants to Start a U.S. Business
By Here’s a short overview to assist you, as a non-U.S. citizen, in understanding the essential tax and related issues you should consider while pursuing your business ventures in the United States.
U.S. citizenship. You can start a business in the U.S. without being a U.S. citizen. If you will be managing your business from within the U.S., you may need a valid work visa or green card.
Work visas. The E-2 visa is popular among entrepreneurs. It requires citizenship from a treaty country, significant capital investment, and a controlling interest in your business. Alternatives include F-1 OPT, H-1B, O-1, and L-1 visas, depending on your situation.
Green card option. The EB-5 visa provides a path to a green card for those ready to invest $800,000 to $1.05 million and create 10 full-time jobs in the U.S.
Business planning. Before starting, conduct thorough market research and choose the right business structure and location. Register your business at the federal and state levels, and obtain an Employer Identification Number (EIN).
U.S. taxation. Familiarize yourself with the U.S. tax system, including federal, state, and local taxes. Tax implications vary based on your entity type.
Sales taxes. Learn the rules for sales tax on goods and services, which vary by state and locality.
Employment taxes. Comply with federal and state employment tax requirements for employees and independent contractors.
International tax considerations. Be aware of international tax issues, including tax treaties and foreign tax credits.
Record keeping and compliance. To avoid penalties or business revocation, maintain accurate financial records and ensure compliance with U.S. tax laws.
Professional advice. We highly recommend seeking advice from a tax professional with expertise in international taxation and an attorney specializing in immigration and business visas.
We are here to assist you every step of the way. Please don’t hesitate to call me on my direct line at 408-778-9651.