Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

Starting a business in the United States

Get started by nailing down your business plan and finding a structure to suit your needs.

Updated

Fact checked

Start your journey to a successful international or domestic business from home. While it’s a time-consuming venture, it’s also a potentially greatly rewarding one.

As the US continues to grow its market and international audience, you may be able to cash in on the upward trend.

How to start a business in the United States

Starting a business takes work. US laws and regulations mean you’ll need to educate yourself about your particular industry and then jump through a few hoops before you can start earning your first million.

Business structure

Starting a company means you’ll need to know the type of business structure you’ll use. For example, will you be in a partnership or will you do it alone?

Your business structure will affect how you register your business, pay your taxes, establish your liability, conduct your banking and file documents with local, state and federal government entities.

Business structures in the US include:

  • Sole proprietorship. A sole proprietorship has a single business owner with complete control over business and profits, as well as personal liability for debts. A business owner can use their personal name for the business or operate under a separate name.
  • Partnerships — LP, LLP and LLLP. Two or more people can enter into a partnership, wherein each person is responsible for the actions — and debts — of the others.
  • Limited liability companies — LC, LLC, Ltd., Co. and PLLC. LLCs take their name from one big pro: limited liability that protects you personally. While they operate like a hybrid partnership–corporation, they don’t necessarily adhere to the rigid structure of a corporation. LLCs also don’t place personal financial obligation on its members.
  • Corporations —Corp., Inc. and PC. Corporations too offer personal financial protection to their shareholders and limited liability, but at the cost of having to adhere to a tight structure. Corporations also require more time and money to set up than other entities do.

Each business structures has different rules. For instance, to form what’s known as an S-corporation, the company cannot have more than 100 shareholders, and each must be a US citizen or resident alien, among other requirements.

Insurance

The US Small Business Administration can help you determine the insurance you’ll need to protect yourself and your business. Take the time to research the needs of your specific business.

For free mentorship from experienced executives, consider contacting the nonprofit SCORE. For basic answers about business insurance, consult services like LegalMatch and LegalZoom.

Loans

Newcomers often raise capital for a business with savings, credit cards and loans. Loans may come from traditional lenders, but don’t rule out help from the government’s Small Business Administration, which has offices in every state.

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000 – $5,000,000
Varies
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
Fora Financial business loans
$5,000 – $500,000
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
loading

Compare up to 4 providers

Credit cards

For smaller businesses or for specific business spending needs, credit cards can be a financing option. Here are two types of business credit cards:

  • 0% APR business credit cards. With a 0% APR business credit card, you can make interest-free purchases for a limited time. However, you’ll need to pay off your balance before the end of the introductory period.
  • Balance transfer business credit cards. Balance transfer business cards let you move an existing credit card debt to your new balance transfer card. These cards often feature intro APR periods on balance transfers, letting you save big on interest.

Business banking

You’ll need to set up a US business bank account to manage your finances. However, finding the right account will depend on your business spending requirements and structure. For example, are you looking for a high-interest account to build a savings balance, or do you want minimal fees to look after your everyday transactions? Will you need a branch nearby, or are you happy handling your transactions through online banking?

With so many account options, there are plenty of business banking solutions to choose from. The same goes for business credit cards.

International billing and payments

Your new business may require you to make and receive international payments, which means you’ll make transactions among currencies and across borders.

You can safely and affordably manage your business payments — with lower fees and stronger exchange rates — by comparing the services of a money transfer specialist.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
$0 Same day USD 0.00 0.839 EUR 4,194 Save your time and money with XE Money Transfer for business Go to site Show details
$1 3 - 5 days USD 7.00 0.835 EUR 4,171 Enjoy high maximum transfers into more than 20 currencies, while saving up to 90% over local banks. Go to site Show details
GBP 5,000 Same day USD 0.00 0.835 EUR 4,173 Increase business efficiency with zero transaction fees and same-day transfers. Go to site Show details

Compare up to 4 providers

What documentation will I need to set up my business?

  • Articles of incorporation. If you’re looking to form a corporation, you’ll need to file your articles of incorporation with your state. This set of documents marks your intent to create a corporation with details as to your services or products, how you run your company and any stock you’ll issue, among other information. You might benefit from a professional early to keep the legality of the articles aboveboard.
  • The scope of your business. A solid business plan can help secure funding early on and provides a road map to better guide your ambitions.

Where do I file my information?

Depending on the size of your business and your industry, you may need to file with federal, state and local agencies. The Small Business Administration provides useful information to businesses about when, where and why you might need to register with more than one agency.

Should I hire a professional to help me?

Though you aren’t required to hire a professional to start your business, an expert in your field could help prevent future problems. Research your industry thoroughly to determine if you can benefit from the extra input. If you’re an industry expert yourself, you might be comfortable skipping this one to chip away at already steep startup costs.

How to start a business as an immigrant

Many immigrants in search of the American dream hope to start up and grow their very own business into a thriving enterprise. If you have that can-do, entrepreneurial spirit, the possibilities within the US business sphere provide many opportunities for business success.

Visas

Before coming to US, you’ll need to ensure that you have the correct business-specific visa in place. There are two broad visa categories for entrepreneurs:

  • Immigrant visas. For those who intend to move the US permanently.
  • Nonimmigrant visas. For those who intend to return to their home country.

Immigrant visas

Visas specific to those who intend to see permanent residency include:

VisaDescription
EB-2 Visa.This visa’s subtypes include visas for advanced degree professionals and those with exceptional abilities. EB-2 visas require a job offer, but entrepreneurs can seek waivers.
EB-1 Visa — Extraordinary Ability.This visa is for those with rarified abilities. However, unlike the EB-2 visa, no job offer is needed.

Nonimmigrant visas

Visas specific to those who intend to move back to their home countries include:

VisaDescription
E-2 Visa — Treaty Investor.This visa requires you to invest substantially in a new or existing business, with investment amounts varying by industry.
H-1B Visa — Specialty Occupation.This visa is extended to those who are starting a business that typically requires at least a bachelor’s degree in science, engineering and other specialized fields.
O-1A Visa — Extraordinary Ability and Achievement.If you have proof of outstanding abilities in science, art, education, athletics or business, this visa can help you start a business in your field. But you must show that you are among the best of the best in your specialty.

Learn more about visas at the US Citizenship and Immigration Services.

The United States has a long history of rags-to-riches immigrant stories. Here are just a few:

  • Born in Vietnam, Andrew Ly came to the Unites States with $1. By 2011 he had won the Immigrant Heritage Award for his Sugar Bowl Bakery that pulled in $40 million annually.
  • Vinod Dham came from India with $8. Today he is a billionaire and considered the “father of Pentium.”
  • Do Won Chang worked three jobs after he and his wife, Jin Sook, moved here from Korea in 1981. In 1984 they started clothing store Forever 21, which now brings in billions every year.

A US Small Business Administration study from 2009 found that 16% of “high-impact, high-tech firms” in the United States have at least one founder who moved here from another country. These immigrant success stories show that the American dream is alive and well.

Bottom line

Once you’ve nailed down your plan, it’s important to select the right type of business structure. The US is a huge market to put a foot in and expand out of, so don’t be afraid to start building your customer base locally.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

2 Responses

  1. Default Gravatar
    TakbirMarch 11, 2019

    How I can transfer the money from Outside country to USA to start business for EB-5 visa ?

    • Avatarfinder Customer Care
      johnbasanesMarch 12, 2019Staff

      Hi Takbir,

      Thank you for reaching out to Finder.

      If you are planning to send a large amount to start a business in the US, you may also want to read on the article below to assist you on the tax guidelines of doing this. The page also offers a list of providers that you could reach out to in completing this process.

      Tax guidelines and regulations for large money transfers into US

      Hope this helps!

      Cheers,
      Reggie

Go to site