Many foreign entrepreneurs make simple mistakes when starting companies in the United States. They don't correctly form their businesses in the United States. They don't separate their personal from their business accounts. They work without authorization, and they don't seek out the professional help they need to successfully operate their own business in the United States.
Take the time now to avoid these mistakes and the time and money needed to fix them.
1. Form Your Business and Get Ready to Open Your Doors
You can start a business in the United States with just a business visitor visa. The trick is that you cannot work for your business until you get work authorization in the United States. With a business visitor visa, you can purchase an existing business, form your own business, or buy into a franchise, but you cannot start working for your business until you receive a work visa and work authorization in the United States.
To form your business in the United States, you will need to register your company with one state in the United States. You can register with any state, regardless of where you will be doing business, but for the most part, you should register in the state where your business will be located. Some people might tell you that Delaware or another state is business-friendly or a tax haven, but forming a business in a state other than the state where your business will be located can cause more problems than it's worth. If you are thinking about forming a business in another state to advantage of that state's business or tax laws, first contact a business attorney or accountant to discuss it. It may hurt more than help you.
Once your business is properly registered with a state government, you must obtain the proper tax identification to register your company with state and federal tax agencies. This tax identification number will be unique to your company, and will be important in paying taxes and setting up business accounts with local banks. After you get your tax identification number, talk to a local banker set up a business account for your company.
With your business registration, tax identification, and bank accounts in order, you are almost ready to open your doors. You cannot work at your company until you receive work authorization in the United States. That means you will have to hire a U.S. worker to start accepting customers, or you will need to apply for a work visa in the United States.
2. Apply for a Visa that Will Allow You to Work at Your Business
Depending on how you set up your business in the United States, and what role you will play in the company, you may qualify for a number of different visas. In this article, I will focus on three visas that entrepreneurs can use to invest in and manage a business in the United States.
A. The Treaty Investor Visa (E-2)
If you're planning on investing in your business more than $50,000.00 but less than $500,000.00, this is probably the right visa for you. The E-2 Treaty Investor Visa is for entrepreneurs from countries which have special treaties with the United States. These treaties of freedom, commerce, and navigation (like the North American Free Trade Agreement) allow foreign nationals of the treaty country to invest in the United States and receive a visa so that they can manage their investments. These investments must be substantial, and must be made in a business or commercial operation for the purpose of making a profit. For this reason, investments in non-profit organizations or passive investments do not qualify for an E-2 visa. The entrepreneur must irrevocably commit enough funds in a commercial venture to make that venture operational, and the entrepreneur must intend to direct and develop that business in the United States so that it grows and. Only these types of investments will lead to an E-2 Visa for the entrepreneur.
B. The Treaty Trader Visa (E-1)
If your business will import or export a substantial amount of goods or services from or to your native country, this is probably a better visa for you than the E-2 Visa. Like the E-2 Visa, the E-1 Treaty Trader Visa is for entrepreneurs from countries which have treaties of freedom, commerce, and navigation with the United States. These entrepreneurial traders must engage in substantial business transactions between the United States and their native country, either through a large volume of transactions across international borders or through a smaller volume of transactions at much larger monetary values. The entrepreneur can trade with countries besides the United States and his or her native country, but must maintain a substantial trade between these two treaty nations.
C. The Executive Transfer Visa (L-1)
If you are an executive or manager at a business outside of the United States, and your company would like to start an affiliated company inside the United States, the L-1 Visa may be a good option for you. For this visa, the foreign company that employs you as an executive or manager must own at least 50% of the new company in the United States. The foreign company must have employed you as an executive or manager abroad for at least one year, and you must perform comparable executive-level duties in the United States. If you only worked as a supervisor of other workers at the company abroad, you will not qualify for this visa. You must be an executive who manages subordinate supervisors or professionals, or a manager who oversees an important function in the business. You should know that L-1 Visas may be hard to renew if your business in the United States does not grow quickly within the first year. If your U.S. company is small when you try to renew your L-1 Visa, it will be hard to prove to immigration officials that you are an executive in this company. A small company has fewer employees and functions that require executive-level management.
With all of these visas, the best thing you can do to prepare to apply is to keep very meticulous records about the money you spent on your U.S. company and the business this company has transacted. Before giving you the visa, immigration officials will review your corporate documents, your financial records, and your tax returns. They will ask for company invoices, payroll records, and accounting statements. For this reason, from the time you start your business to the time you apply for your visa, you should keep records of every transaction, every agreement, and every dollar spent on your investment.
3. Start Working, Stay Legal, and Expand Your Business
After you properly form your business and secure your work visa, you are authorized to start working for your business in the United States. You should focus on your business, but you must not forget to plan for your visa renewal. To renew your E-2, E-1, or L-1 Visa, immigration official will want to know that your business is continuing to operate and that your business is growing. Immigration officials want to see that you are hiring U.S. workers, paying taxes, and building the economy in the United States. If your company is small, with no employees, and only makes enough money to support you and your family, immigration officials will not want to renew your visa. You must show them that your investment in the United States had an impact. You need to add to the U.S. economy.
Also, immigration officials will want to know that you haven't violated your visa before granting your renewal. Immigration officials will ask for recent paystubs showing that you are working at your business. Immigration officials will ask if you have been working at other businesses, and they will deny your visa renewal application if they find that you have been working for businesses unaffiliated to your company or if they find that you have committed certain immigration offenses or crimes.
4. Conclusion
Follow these three steps to open your business, obtain your visa, and gain the work authorization you need to expand and grow your business in the United States. And get the help you need before you start. You might be able to form your business without legal and accounting help, but after this point, you need to find the professional help you need to organize your business and get your visa. Ultimately, well-organized business and work authorization will be your most important possessions as an entrepreneur in the United States. Not paying for these needed services will only hurt you in the end.
No comments:
Post a Comment