Immigrants have the opportunity to start a business in the US once they overcome such barriers like obtaining the right to legally open a shop or service where a good immigrant lawyer can be helpful.
You can operate a business and will have the same challenges as well as the benefits of operating a business in the US. In this article, you will find an overview of what to expect when starting a business as an immigrant in the US.
The Very Start
Before starting a business, knowing what type of business structure you will have is important. There are two models to choose from: C Corporation and a limited liability company (LLC).
This structure is ideal for individuals who live abroad because of the legal and tax benefits. A C Corporation also has a separate legal identity which means the corporation itself has its own rights and responsibilities.
C Corporations also share limited liability which means it cannot be sued or held liable for any obligations or debts the corporation may incur. Finally, it has perpetual existence which means even with bankruptcy or demise of the owner, it can still stand.
On the other hand, a limited liability company has a hybrid company structure. This structure mixes both corporations and limited partnerships where the members of the company are not held personally liable for the debts or liabilities.
When a business owner uses an LLC structure, all profits are given to the owner and the taxes are paid from their personal tax return. There is also more flexibility in terms of splitting the income from partners and co-owners. Finally, there is less paperwork in this structure because it doesn’t require a board of directors.
Choice of State
The location of a business is important in reaching your target customers as well as in making your operations run smoother. When choosing where to locate your business, make sure to know what taxes you need to pay for the type of structure you chose and what type of corporate privacy they provide.
Registering the Business
You have to be prepared when registering a business. Here are the things you need to have beforehand:
- Business name. The trade name is the name you use when you’re doing a business with the state. The name should be unique and should not incur any trademark infringement.
- Taxpayer’s Identification Number. Immigrants should obtain an ITIN to meet this requirement.
- Employer Identification Number. This is used for business tax purposes.
Ruby Powers Law
We specialize in immigration law and can guide you through the many avenues of the US Immigration System. We are easy to reach and are always available to provide you with expert and professional assistance in reuniting with your family in the country.
As immigrants, you have the opportunity to apply for a loan. There are different means to do this and you should choose the one that has great terms and most beneficial to you and your future business.
Starting a business in the US is a great start to reaching your goals and dreams for your family. For more information, contact a Houston immigration lawyer near you.