Yes, foreigners, non-US citizens, and non-residents can open a business in the United States. Foreign entrepreneurs enjoy nearly the same rights to start, invest in, and own a US business as domestic citizens, subject to specific corporate, state, and banking regulations.
Because of its straightforward legal framework, reduced regulatory bureaucracy, strong consumer market, and economic stability, the United States remains one of the world’s premier destinations for foreign direct investment and cross-border entrepreneurship.
How Foreigners Own and Structure US Companies
Foreign citizens can establish a US business either as an individual or through an entity, such as a foreign holding company. When a non-US citizen or foreign entity holds an ownership stake in a US enterprise, the entity is classified as a foreign-owned US company.
- 100% Foreign Ownership: Non-citizens can own 100% of a US business, or they can partner with US citizens or other international investors.
- State Registration: A foreign-owned US company must register to do business in at least one US state.
- Example Structure: An Italian entrepreneur expanding to Miami can incorporate a new corporate entity in Florida directly in their personal name, through an existing Italian company, or through a combination of both.
Choosing the Best State to Start a US Business: Why Florida Stands Out
Every US state maintains independent business laws, filing fees, tax structures, and compliance requirements. Foreign investors must carefully evaluate where to incorporate based on their target market and operational needs.
The State of Florida—particularly the South Florida and Miami metropolitan region—is a top choice for international investors for several key reasons:
- Global Business Hub: South Florida offers an international business ecosystem highly responsive to foreign investors.
- Favorable Tax Climate: Florida features low state corporate tax burdens and no state personal income tax.
- Cost Efficiency: Entity formation fees, annual maintenance costs, and ongoing management overhead in Florida are lower than in states like New York or California.
You should work with a business formation lawyer to understand the business formation requirements and the limitations on work in the United States.
What Type of Business Can a Foreigner Open in the USA?
Foreign citizens and non-US residents can open Limited Liability Companies (LLCs), C-Corporations (C-Corps), and Partnerships in any U.S. state. However, foreign non-residents are legally prohibited from owning an S-Corporation (S-Corp) under IRS rules.
Choosing the right entity structure depends on tax strategy, liability protection, governance needs, and international tax residency status.
Business Entity Options for Non-US Residents: LLC vs. C-Corp vs. S-Corp
| Entity Type | Eligible for Non-US Residents? | Taxation Level | Key Advantages & Characteristics |
| Limited Liability Company (LLC) | Yes | Pass-through (taxed at individual owner level) | Limited liability protection, flexible management, fewer operational formalities. |
| C-Corporation (C-Corp) | Yes | Double taxation (taxed at corporate level + shareholder dividends) | Limited liability protection, preferred by venture capitalists, easy issuance of stock. |
| S-Corporation (S-Corp) | No | Pass-through (taxed at individual level only) | Prohibited for non-resident aliens. Only US citizens and US tax residents may hold shares. |
| Partnership | Yes | Pass-through (taxed at partner level) | Shared ownership model; requires two or more partners. |
Why Non-Residents Cannot Own an S-Corporation
Under U.S. Internal Revenue Code regulations, an S-Corporation cannot have a non-resident alien as a shareholder. If a non-resident alien acquires even a fraction of an S-Corp share, the company automatically loses its S-Corp tax status and reverts to a standard C-Corporation.
How IRS Rules Define a Non-US Resident vs. Tax Resident
For entity formation and tax classification, the Internal Revenue Service (IRS) determines tax residency status using two primary benchmarks:
- The Green Card Test: You are a lawful permanent resident of the U.S. at any time during the calendar year.
- The Substantial Presence Test: You are physically present in the United States for at least 31 days during the current year and 183 days over a 3-year weighted calculation period (excluding certain exempt visa categories like F, J, M, Q, A, or G visas).
Practical Example: Non-Resident Business Ownership
A citizen and resident of Argentina wants to launch and 100% own a U.S. business while remaining in Argentina. They hire U.S. staff to manage daily operations and only travel to the U.S. occasionally on a B1/B2 tourist/business visitor visa.
Because this individual does not hold a Green Card and does not meet the Substantial Presence Test, they are classified as a non-resident alien. They can form a U.S. LLC or C-Corporation, but cannot form or own an S-Corporation.
How to Open a Business in the USA as a Foreigner?
As a foreigner you can open a business in USA by following these steps:
- Select the Optimal Business Entity Structure
- Choose Your Incorporation State & Appoint a Registered Agent
- Form the Entity
- Obtain Federal/State Tax IDs
- Open a US Business Bank Account
- Secure Required Operating Licenses and Permits
- Establish Workforce & Form I-9 Employment Eligibility Compliance
- Execute Franchise or Commercial Agreements (If Applicable)
When Does a Foreigner Need a Visa to Open a Business in the USA?
You do not need a visa or a Green Card to start, own, or purchase a business in the United States as a foreigner. Foreign citizens and non-residents can freely establish US companies, serve as corporate shareholders, and hold officer or director positions remotely without any US immigration authorization.
However, you DO need a valid US work visa if you intend to live or work in the United States for your business. To learn more, visit Can a Foreigner Open a Restaurant in USA?.
Key Legal Rules for Foreign Business Owners
- No Visa Required to Own: You can own 100% of a US business, act as a shareholder, or serve as an officer remotely without holding a US visa or green card.
- Work vs. Ownership: Operating as an owner receiving passive profits is allowed remotely, but performing active labor within the United States requires proper work authorization (for example, E-2 Treaty Investor visa or L-1 Intracompany Transferee visa, etc). You cannot work in the US for your business on a standard B1/B2 tourist visa.
Why You Cannot Work for Your US Business on a B-1/B-2 Visitor Visa
A B-1/B-2 visa (or ESTA Visa Waiver) allows foreign citizens to enter the U.S. temporarily to attend board meetings, negotiate contracts, and consult with business associates.
However, a B-1/B-2 visa strictly prohibits active employment or managing daily U.S. operations. Working for your own U.S. company while physically present in the U.S. on a tourist or business visitor status violates U.S. immigration laws.
U.S. Work Visa Options for Foreign Business Owners
If you plan to move to the U.S. or actively manage your company inside the country, you must secure an appropriate entrepreneur or investor visa:
- E-2 Treaty Investor Visa: Allows nationals of designated E-2 treaty countries to live and work in the U.S. by investing in a U.S. business.
- E-1 Treaty Trader Visa: Designed for individuals from treaty countries engaged in substantial international trade between their home country and the U.S.
- L-1 Intracompany Transferee Visa (L-1A & L-1B): Enables foreign companies to transfer an executive or manager to open or operate a subsidiary, branch, or affiliate office in the U.S.
- O-1 Extraordinary Ability Visa: For entrepreneurs who demonstrate extraordinary achievement in sciences, arts, education, business or athletics.
- EB-5 Immigrant Investor Program: Offers a direct path to a U.S. Green Card for foreign investors committing significant investment capital (minimum $800,000 to $1,050,000) that creates at least 10 full-time U.S. jobs.
Key Challenges: Banking and Work Limitations
While starting a company in the US as a non-resident is straightforward, foreign owners encounter two primary operational hurdles:
- US Business Banking: Financial institutions vary in flexibility when opening business bank accounts for foreign-owned entities. Many banks require specific documentation or in-person verification.
- Work Authorization Limitations: Owning a US company does not automatically grant a foreign citizen the right to work inside the United States. Managing local US operations physically within the country requires an appropriate US visa (such as an E-2, L-1, or EB-5 visa).
Why Partner With Us
Navigating the intersection of U.S. business law and immigration regulations requires careful strategic planning.
Our Board-certified business and immigration lawyers guide international entrepreneurs structure their U.S. companies to align perfectly with visa requirements—ensuring full legal compliance while building a clear pathway for foreign owners, executives, and key staff to work legally in the United States. through every step—ensuring your corporate structure is fully compliant and positioned for long-term growth.
Contact our team to launch your US business with confidence and evaluate your business visa options.
We serve companies and individuals across all 50 states, the District of Columbia and Puerto Rico.
Contact us or schedule a consultation.
Malescu Law P.A. – Business & Immigration Lawyers