Start a business in the US as an expat

The process of starting a business in the US isn’t too complicated, and there’s lots of help out there to allow you to register your new enterprise and start to trade.

So – what do I need to start a business in the US? How do I choose the right entity type, and get a business bank account ready before I start to trade? And what help is there from start up business loans in the US?

Join us as we explore the ins and outs of how to start a business in the US, in person or online.

Business culture in the US

Before we look at how to start your own business it helps to understand a little about US business culture. Global business culture can vary a lot, so getting to grips with the etiquette before you dive in can help avoid unnecessary issues or headaches.

US Chamber of Commerce statistics show that an astonishing 99.9%+ of all businesses in the US are classified as small businesses, employing half the country’s workforce. Small businesses are the backbone of the economy, so you won’t be alone once you start your business in the US.

When it comes to business etiquette, Americans tend to prioritise quick decisions, and expect brief, direct communication. Communication and a sharing of ideas is encouraged in many organisations – but expect the ultimate decision making power to lie with whoever the ‘boss’ is in the given situation.

It’s also important to be prompt if you have an appointment set. Time keeping is important, and considered respectful, although you won’t be expected to take a gift along to a business meeting or event as you may in some cultures.

Who can start a business in the US?

Before we look at how to open a physical business, or how to start an online business from the US, let’s focus on who is entitled to start a business in the country.

It’s important to note that having a business in the US isn’t enough on its own to get you a visa or right to reside there.

If you’re planning on moving to the US, you’ll need to look at the visa and permits which could work for your situation carefully before you move.

To own a business in the US you may consider US business visa options like:

• IER (International Entrepreneur Rule) – you must have 5%-10% ownership of a start up with substantial potential for rapid growth and job creation
• B-1 (Temporary Business Visitor) – offered to allow you to explore funding or office space, or negotiate a contract aimed at starting a new business
• E-2 (Investors from Treaty Countries) – you must have 50%+ ownership or control over a company which is not a marginal investment
• EB-5 (Employment-Based Fifth Preference – Immigrant Investor Program) – requires you to invest at least 1.05 million USD and create 10+ jobs

Getting a visa agent to help may be a quick way to narrow down your options, and make the process of choosing and applying more straightforward.

Beyond this, you’ll need to make sure you’re able to legally and financially start the business entity type you intend to run in the US – we’ve got more on the different legal structures you may select coming up next.

Once you’ve picked an entity type and checked you’re practically able to open your business, registering is a fairly straightforward process, particularly for sole traders and people working in a partnership arrangement. If you’re opening a company and have foreign directors this is also usually acceptable.

Legal structures for businesses in the US

One of the first decisions when you choose to start a business in the US is the entity type which suits your needs.

Different countries have different legal business structures, and while they’re often quite similar from one country to the next, it’s worth getting to know the most common entity types used in the US before you register. Here’s a summary.

Sole proprietorship

Registering as a sole proprietor is the simplest way to start to do business in the US. You’ll need to be the sole owner, and you’re then considered to be legally responsible for all aspects of the business, including any debt incurred.

As a sole trader you can not sell stock, and may therefore find that securing funding for your company is harder compared to other entity types.

Partnership

A partnership is 2 or more people who share responsibility for a business together, and can be either a limited partnership (LP) or a limited liability partnership (LLP).

In a LP structure there’s at least one general partner who has unlimited liability for the business and its debts, while a LLP structure limits the liability of all partners.

Limited liability company (LLC)

A limited liability company (LLC) is a limited liability model which means that the owners of the business are considered as separate to the business itself. Owners and directors have important obligations but may not be obliged to pay any company debt from their own funds in the event the business runs into trouble.

LLC owners are considered as self employed and pay personal income tax on profits. In some states there’s no option for changes of ownership, so an LLC may have to be dissolved if the owners change.

C Corp

A C Corp is also a separate entity from its owners for tax purposes, and profits are subject to corporation tax rates.

The costs to form and administer a C Corp are higher than some other entity types, but there are options for selling stock and raising funds which can make this a good choice for higher risk businesses which intend to grow and go public at a future point.

How to start a business in the US as an expat

So – how do you start a business in the US as an expat? This process will vary for different individuals and entity types, but is likely to include:

How to obtain a business visa in country

Let’s look in more detail at a couple of options to get a visa for business in the US:

• IER (International Entrepreneur Rule)
• B-1 (Temporary Business Visitor)

Under the International Entrepreneur Rule, entrepreneurs with at least 311,071 USD in qualified investments (or who meet other criteria), who have a start up that’s under 5 years old in the US, may apply for a stay of up to 30 months initially. This may be extended for a further 30 months on application.

If you don’t yet have a US business and want to visit to explore your options, the B1 Temporary Business Visitor might be a good fit.

You are not eligible under this visa type to actually set up your business, but this can be a good way to stay in the US for up to 6 months while you explore business funding, negotiate contracts and get ready to apply for a longer term entrepreneur visa when you actually launch your new business.

Registering your business in the US

The next step is choosing a name and registering the business with state and local governments. If you’re a sole proprietor working under your own name only you may not need to register at all, but you might still find there are advantages to getting registered.

You’ll normally need to register with the state authorities in any state where you do business. This may be a digital process or you might have to submit hard copies of documents in some cases. Agents can often act on your behalf to make this process easier. Some business types also need local licenses and permits to trade.

You can then register for US tax, which can include different processes depending on your business type and your expected turnover.

Licenses and permits

Some US businesses may need licenses or permits. The requirements depend on your industry, business type, and the state you register in. You can also get help from a relevant industry body or a professional advisor if you need to.

Managing international business finances

Before you start to make or receive payments on behalf of your business in the US you’ll need a business account. You can open a business account online for convenience, which may also offer you business friendly perks and low costs.

As an expat business owner you may find you need to manage international transactions frequently. You may also find there are currency exchange challenges in international payment processing – particularly when it comes to costs.

If you open an account which can hold USD only, any incoming foreign payments must be converted to dollars for deposit, which might not be practical if you need to then use your balance to pay contractors or suppliers overseas.

Getting a business multi-currency account from a provider like Wise instead offers benefits to anyone trading internationally or working with overseas suppliers and staff.

You can open a Wise Business account online or in the Wise app, to hold 40+ currencies and make easy, low cost cross-currency payments to 140+ countries using the mid-market exchange rate.

Your account also offers ways of receiving funds from other countries in a selection of currencies. This means you could get paid by a customer in GBP, CAD or EUR, and leave the balance in that currency until you need it for a payment yourself. Or convert back to USD to withdraw, and access the mid-market rate with low, transparent fees.

Starting up an online business in the US

To open an online business in the US you’ll need to register your company in the same way as you would a physical store or other business type. You may also need to get permits and licenses depending on the type of company and niche you work in.

Since online businesses often deal with international clients you’re more likely than ever to have international payment processing needs, which makes it important to get a multi-currency account which can handle your incoming and outgoing payments smoothly.

Foreign companies opening up a branch or subsidiary in the US

The rules for registration of a branch or subsidiary in the US, and the obligations of the company owners or directors depend on the details of the business registration.

Many of the required steps to open a branch or subsidiary of an existing foreign company in the US are similar to those required when forming a new US business. However, if you’re not physically present in the state in which you intend to do business, you’ll usually find that you need a legal representative there as part of the registration process.

You’re likely to find that getting individual professional advice is essential, to make sure you get the process right in your own unique situation.

Starting up a non-profit company in the US

If you’re opening a not for profit company in the US you’ll need to register it using an appropriate legal structure and complete your charity registration. There’s lots of helpful information provided by the US Council of Non-Profits which can help you navigate this process.

You’re likely to need to register for federal 501(c)(3) tax-exempt status – as long as you qualify based on your not for profit’s set up and activities. The process here is pretty strict and complex, so you may benefit from professional advice to make sure you register in the most beneficial way, and can access any tax concessions or support which may help your new charity.

Administering your business in the US

It’s not often the most exciting part of your to do list as a business founder, but the business administration aspects of starting a business are still essential to its success. Here are some main aspects to consider:

• Insurance – some business insurance is mandatory, such as public liability insurance and workers compensation insurance, if you have employees. Other insurance types may be optional but can give you peace of mind and protection if things go wrong.
• Banking – open a business account before you start to trade to keep your personal and business money separate. Even if having a dedicated account isn’t mandatory it can make it far easier to run your business, file your taxes and analyse your profits.
• Accounting and taxes – having cloud based accounting tools is a common choice for US businesses, when your company isn’t quite complex enough to need a dedicated full time in house accountant. Whichever option you choose, keep on top of your accounting and tax liabilities to stay on the right side of the law.
• Hiring staff – if you’re hiring employees in the US you’ll have to comply with employment law, and follow other duties such as reporting and paying tax. As hiring can be complicated many companies have agency support when starting out.

Support and advice when starting up a business in the US

The US government’ Small Business Administration (SBA) offers a lot of support and advice for new businesses, including details of business loans or grants to help get your enterprise off the ground. Loans and financial help can be found based on your location, industry, company objective and other factors.

The SBA also has information and training resources which may help you build your skillset to grow your business.

Corporate social responsibility in the US

In the US, many local businesses comply with local, national and global initiatives to ensure they are responsible entities.

Some US listed companies – and particularly large multinationals – report on CSR matters annually, with detail of any CSR risks in their business model and information of how they intend to manage it.

Topics which are commonly discussed in the wider CSR debate in the US include:

• Climate change
• Corruption
• Human rights issues, including modern slavery
• Diversity
• Data and privacy
• Sustainability reporting

Organizations like the US Chamber of Commerce offer useful insights into the US CSR landscape which can help you get a feel for what is important in the minds of small business owners.

Useful resources

Information last checked on 19th of January, 2026

• Wise – multi currency accounts for international businesses
• US Census Bureau – Information small businesses in the US may find helpful for growth
• US Chamber of Commerce – Small business statistics
• International Trade Administration, U.S. Department of Commerce – Useful resource for US businesses and support when investing in the US
• US Citizenship and Immigration Services (USCIS) – Immigrant investor visa information
• US Small Business Administration (SBA) – Business Guide
• SBA – US business entity types explainer
• Financial Crimes Enforcement Network (FinCEN) – Some businesses require FINCEN registration