A few years ago, I was in exactly the same situation you might be in: sitting in front of my laptop, outside the US, wondering how to start my own small business in the huge American market. The idea of starting a business in the US was exciting on one hand and a little overwhelming on the other.
Googling the dates, trying to understand confusing keywords, and that feeling that maybe this dream is just for “some other people”, I felt all of these things too. But I want to say this: with a little guidance and a lot of courage, it is possible. Yes, you can own and operate a successful US company, even as a non-resident.
This is not a generic guide. This is my real journey, how I made this dream a reality. I will share the steps I took, share the emotional wins (like getting paid in USD for the first time!), and give the honest advice I needed. So grab a coffee, take a deep breath, and let’s build your American dream.
Why bother telling me first? Life-changing perks of US small businesses
First of all, why? What is the advantage of owning a US company? For me, this was a total game-changer.
- World’s biggest market: The US is the world’s largest consumer market. Being a US entity instantly increases your credibility with American customers.
- Unlocking US payment gateways: This was huge for me. Services like Stripe and PayPal are easy to set up with a legitimate US company and bank account, and have fewer restrictions.
- Building trust and authority: US-registered business partners, clients, and investors find them more professional and trustworthy.
- Attracting US investors: If you’re building a startup that needs funding, a US entity (especially a C corporation) is more attractive to venture capitalists.
A 5-step roadmap to launch a US company
Now let’s break this mountain down into small, manageable steps. Put the legal headaches aside; this friendly checklist is the one I followed, and it works.
Step 1: Selecting a legal home for your small business (LLC vs. C Corp)
This may sound complicated, but it’s simple. There are two main choices for a non-resident.
LLC (Limited Liability Company): My personal favorite, and I took this route. Think of an LLC as a protective shield; it keeps your personal assets separate from business debts. If your business faces any legal issues, your personal savings will be protected. For most online businesses, freelancers, and e-commerce stores, LLCs are a simple and flexible option.
C Corporation (C Corp): A little more formal structure and best if you want venture funding. You can raise funds by selling C Corp stock, which is a big plus for high-growth startups. The downside is more paperwork and a chance of “double taxation” (tax on company profits, and then tax on shareholders’ dividends).
My honest story: I chose LLC for my digital business. Got liability protection without the complex admin of C Corp. Seemed like a perfect place to start.
Step 2: Choosing the right state (this is more important than you think)
As a non-resident, you can register your company in any state. Some states are very friendly to international entrepreneurs.
Top options,
- Wyoming: I registered my LLC here. Wyoming is great for non-residents; there is no state income or corporate tax, and annual fees are very low. Privacy protection is also strong.
- Delaware: If you are planning a C Corp and want funding, Delaware is the gold standard. Its Chancery Court is respected for business legal matters. For LLCs, Delaware does not pay state income tax on offshore income.
- Nevada: Another popular choice where there is no state income tax. Fees can be a little higher than in Wyoming, but it’s still a solid option.
Real example: I chose Wyoming. Zero state income tax, an annual report fee of around $60, and strong privacy laws, perfect for my online business.
Step 3: The paperwork part (can be made easy)
This part is the most intimidating, but you’re not alone. Here’s what you need:
Find a Registered Agent: Every US company needs a registered agent, a person or service with a physical address in your chosen state that can receive official legal/government mail. P.O. Boxes are not allowed.
Practical tip: Don’t worry too much. There are affordable and reliable online services like Northwest Registered Agent, Harbor Compliance, or LegalZoom that handle this for a yearly fee. I also use one of these services and get a lot of peace of mind.
Get a US business address: You need a physical US address to register a company. A virtual business address is also available online.
Apply for EIN (Business Tax ID): EIN is a 9-digit number from the IRS, like a business’s “Social Security Number.” It is needed to open a bank account, hire employees, and file taxes.
Can I get an EIN without an SSN? Yes, you can. SSN is required to apply online, so Form SS-4 has to be filled out and sent to the IRS by fax or mail. The process can take several weeks, so patience is a must. I remember when I received my EIN confirmation letter, it felt like everything was officially set.
Step 4: Opening a US business bank account (the money part)
A few years ago, this was the most difficult for non-residents because a physical visit was required. Technology has made it much easier these days.
Traditional banks (Chase, Bank of America) can still sometimes ask for in-person, but fintech solutions built for global founders are extremely helpful.
Fintech options: Platforms like Mercury, Relay, and Wise Business are game-changers. They provide US bank accounts to internationally-owned businesses, and often the entire application is completed online.
My experience: I use digital banking services. The setup was smooth; company formation documents, EIN, and a passport were needed. Being able to receive USD directly and connect with Stripe was a huge breakthrough for me.
Step 5: Focus on Compliance (stay on the right side of the law)
Now you are a US business owner, but the journey doesn’t end here. Compliance is important.
Annual reports: Most states require companies to file an annual report and pay a small fee so that the company stays in good standing. Wyoming has a very low fee.
US taxes: This is the most important part. Being a foreign owner can complicate your tax situation.
You may need to file informational forms with the IRS, such as Form 5472, even if you don’t have to pay US taxes.
Will you have to pay US income taxes? It depends on whether you are “engaged in a trade or business in the US” or not.
My honest advice: Don’t try to figure this out on your own. My suggestion is to hire a US-based accountant who works with non-residents. This is an investment that can save you a lot of stress and problems with the IRS.
Final Encouragement
I know this may seem like a lot right now. But follow the steps – no step is impossible. Each is a small, achievable action. Running a US small business isn’t just for a few people; it’s for passionate creators, innovators, and entrepreneurs, wherever they are.
You don’t need a US visa to own a business. You just need a clear plan and the courage to take the first step. The first step could be state research, or simply believing that it’s possible.
You can do it. The global market is waiting for what you have to offer.
Ready to take the first step? Comment below with your biggest question or concern. I will give you the best possible direction based on my experience.
