5 Visas to Start a Business in the USA

Many people are looking for more opportunities and a chance to advance their careers in the United States. However, it is not an easy task to be approved as a business owner as a non-US citizen. There can be a lot of paperwork and an extensive application process required to ensure that you are legally working in the US.

We’re here to shed light on this topic and present the five most important visas to start your business in the USA.

Do You Need a Visa to Start a Business in the USA?

If you are a foreign national and wish to start a business in the USA while actively working and residing in the country, you will need an appropriate visa. The visa requirement ensures compliance with immigration laws and allows you to legally conduct business. The type of visa required depends on factors such as your role in the company, your qualifications, and the nature of your business activities. 

Here are some frequently asked questions about US Visa & Immigration laws for more information.

5 Most Common Options for US Business Visas

Once you have decided that you need a visa, you will have to determine which visa is suitable for you. In this section, we will discuss the key features of the five most common U.S. business visas, along with their advantages and disadvantages.

E2 Investor Visa

The E-2 visa allows foreign investors to enter and work in the U.S. to establish and manage their businesses. It is usually issued for up to five years, with the possibility of renewal as long as the business remains viable. 

The E-2 visa allows you to engage in a variety of business activities, such as starting a new business, buying an existing business, or investing in a franchise. Business activities can include a variety of industries, such as retail, consulting, technology, manufacturing, or services.

Pros

• The E-2 visa allows for flexibility in terms of the type of business and industry you can pursue.
• Spouses and unmarried children under 21 can accompany the E-2 visa holder as dependents and are eligible for work authorization.
• The visa can be renewed indefinitely as long as the business continues to operate and meets the visa requirements.

Cons

• The E-2 visa is available only to citizens of countries that have a treaty of commerce and navigation with the United States.
• While there is no specific minimum investment requirement, the investment must be considered substantial and proportional to the business venture.
• The E-2 visa is a non-immigrant visa, which means that it does not provide a direct path to permanent residency or citizenship.

Requirements

• The applicant must be a citizen of a country that has an E-2 treaty with the United States.
• The applicant must have made a substantial investment in a US business or an active business.
• The applicant must have at least 50% ownership of the business or possess operational control through a managerial position.
• The business must be a legitimate, for-profit enterprise that intends to generate income and provide employment opportunities.

EB-5 Immigrant Investor Visa

The EB-5 visa program is intended to attract foreign investment and stimulate economic growth in the United States. To qualify, applicants must invest a minimum amount of capital in a new economic enterprise and create or retain a certain number of full-time jobs for U.S. workers. 

The EB-5 visa allows individuals to invest in a wide range of business activities, including real estate development, infrastructure projects, manufacturing ventures, hospitality, and more. 

Business activities must be for-profit and comply with all applicable laws and regulations. The investment must result in the creation or retention of at least 10 full-time jobs for qualified U.S. workers.

Pros

• The EB-5 visa provides a direct path to permanent residency for the investor, their spouse, and unmarried children under 21.
• Investors have the flexibility to choose the type of business they want to invest in, subject to certain eligibility criteria.
• Unlike some other business visas, EB-5 investors are not required to actively manage the business on a daily basis.

Cons

• The minimum investment amount is typically $1 million, although it may be reduced to $800,000 if the investment is made in a targeted employment area (TEA).
• The investment must create or preserve at least 10 full-time jobs for qualifying US workers within a specific timeframe.
• The EB-5 program has a limited number of visas available each year, which has resulted in a backlog of applications and extended processing time.

Requirements

• Invest a minimum required amount of capital in a new commercial enterprise. The standard minimum is $1 million, or $800,000 in a TEA.
• Create or preserve at least 10 full-time jobs for qualifying US workers within two years of receiving the conditional green card.
• Demonstrate that the investment capital is obtained from lawful sources, such as business earnings, real estate sales, or inheritance.
• Develop a comprehensive business plan outlining the investment project and its economic impact.

L1 Intracompany Transferee

The L-1 visa facilitates the temporary transfer of key personnel within a multinational corporation to its U.S. subsidiary, affiliate, or parent company. It allows companies to use their internal talent and expertise to support operations in the United States. 

The L-1 visa allows individuals to engage in a variety of business activities, including managing U.S. operations, coordinating projects, supervising employees, and implementing business strategies. 

The visa holder can work in a variety of industries, including technology, finance, consulting, manufacturing, and others.

Pros

• The L-1 visa facilitates the transfer of experienced personnel from a foreign company to a US entity, ensuring continuity and leveraging existing knowledge and expertise.
• L-1 visa holders may pursue a lawful permanent residency (green card) while maintaining L-1 status, providing a potential path to long-term residency.
• Spouses and unmarried children under 21 can accompany the L-1 visa holder as dependents and are eligible for work authorization.

Cons

• The L-1 visa requires sponsorship from the US employer, as it is tied to a specific company.
• The visa applicant must meet specific eligibility criteria, such as being employed by the foreign company for a continuous period and possessing the necessary managerial or specialized knowledge skills.
• The initial L-1 visa is typically granted for up to three years for a new office or up to five years for an established office. Extensions are possible, but there is a maximum limit on the total duration.

Requirements

• The US company and the foreign company must have a qualifying relationship, such as being a parent, subsidiary, affiliate, or branch office.
• The applicant must be employed by the foreign company for at least one year within the past three years before the visa application.
• The applicant must be seeking to enter the US to work in a managerial, executive, or specialized knowledge position.
• Both the US company and the foreign company must be actively engaged in legitimate business operations.

EB-1C Visa

The EB-1C visa is for multinational executives and managers who are employed in an executive capacity by a qualified foreign corporation. It allows individuals to perform managerial or executive duties in the U.S., such as overseeing business operations, supervising employees, making strategic decisions, and managing important projects. 

The visa holder can work in a variety of industries, from technology and finance to manufacturing and services.

Pros

• The EB-1C visa is an immigrant visa, which provides a direct route to permanent residency (green card) without the need for a labor certification process.
• Unlike many other employment-based visas, the EB-1C does not require the employer to prove that there are no qualified US workers available for the position.
• Spouses and unmarried children under 21 can accompany the EB-1C visa holder as dependents are eligible for work authorization.

Cons

• The EB-1C visa requires a high level of managerial or executive experience and expertise, making it more challenging to qualify.
• The visa requires sponsorship from the US employer, as it is tied to a specific company.
• The processing times for the EB-1C visa can be lengthy, and there may be backlogs depending on the country of origin.

Requirements

• The US company and the foreign company must have a qualifying relationship, such as being a parent, subsidiary, affiliate, or branch office.
• The applicant must be employed by the foreign company in a managerial or executive capacity for at least one year within the past three years before the visa application.
• The applicant must be entering the US to work in a managerial or executive position in a US company, with similar job responsibilities.
• The applicant must demonstrate that they will primarily be engaged in managerial or executive activities in the US company.

International Entrepreneur Rule

The IER offers foreign entrepreneurs who do not qualify for existing visa categories an alternative pathway to establishing and operating their startup companies in the United States. It is designed to attract innovative entrepreneurs who can contribute to job creation and economic growth in the United States. 

Under the IER, foreign entrepreneurs can engage in a wide range of business activities related to their startup, including developing business plans, securing financing, building partnerships, and implementing growth strategies. 

The program encourages the creation of businesses in industries such as technology, science, research, and innovation.

Pros

• The IER provides a pathway for foreign entrepreneurs to establish and grow their businesses in the US, tapping into the country’s robust market and resources.
• The program aims to stimulate economic growth by encouraging entrepreneurs to create jobs for US workers.
• The IER allows entrepreneurs to work on their startup ventures for a temporary period, typically up to five years, with the possibility of extensions.

Cons

• The IER was introduced as a regulatory rule and is subject to potential changes or rescission by the US government. Its future viability may be affected by policy shifts.
• The program has specific eligibility criteria, and not all entrepreneurs may meet the requirements.
• The IER is a temporary program and does not provide a direct path to permanent residency or citizenship.

Requirements

• The entrepreneur must possess at least 10% ownership in the startup and maintain significant operational and decision-making control.
• The entrepreneur must play an active and central role in the startup’s operations, contributing to its growth and success.
• The startup must demonstrate substantial potential to create jobs, generate revenue, and contribute to the US economy.
• The entrepreneur must have received significant capital investment or government grants for the startup, with at least $250,000 from qualified US investors or $100,000 from government entities.

How to Start a Business in the USA for Nonimmigrants?

Although nonimmigrants may encounter constraints concerning visa choices, opportunities to create and run a business are certainly present. This guide outlines the crucial stages of starting a business in the USA for nonimmigrants, aiming to assist entrepreneurs in the procedure effectively.

1. Determine Business Structure and Entity Type

• Choose the appropriate legal structure for your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation.
• Research the advantages and disadvantages of each entity type in terms of liability, taxation, and management.

2. Develop a Comprehensive Business Plan

• Create a detailed business plan that outlines your objectives, target market, marketing strategies, financial projections, and operational processes.
• A well-crafted business plan is crucial for securing funding, attracting investors, and demonstrating the viability of your business idea.

3. Research Licensing and Permits

• Understand the specific licensing and permit requirements for your business at the federal, state, and local levels.
• Contact the relevant government agencies to obtain the necessary permits, such as business licenses, tax registrations, health and safety permits, and professional licenses, if applicable.

4. Secure Funding

• Determine the financial needs of your business and explore various funding options, including personal savings, loans, grants, venture capital, crowdfunding, or angel investors.
• Prepare a solid financial strategy that includes budgeting, cash flow projections, and revenue generation plans.

5. Choose a Business Location

• Research suitable locations that align with your business model, target market, and industry.
• Consider factors such as proximity to customers, access to suppliers, availability of skilled labor, infrastructure, and costs.

6. Register Your Business

• Register your business with the appropriate authorities, such as the secretary of state’s office or county clerk’s office.
• Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.

7. Comply with Employment Regulations

• Familiarize yourself with federal and state employment regulations, including minimum wage, labor laws, employee benefits, and workplace safety requirements.
• Develop HR policies and procedures that align with the legal framework.

These steps provide a general overview, and specific requirements may vary depending on the nature of your business, industry, and location. Professional advice from an attorney, accountant, or business consultant familiar with US regulations can help you navigate the complexities and ensure compliance with all legal obligations.

Set Your Business Roots in the USA

Starting a business in the US presents endless possibilities for growth. But as a non-US citizen, you may be presented with several obstacles before you can set your roots in the country. Fortunately, there are ways you can ensure legal compliance of your business ventures by applying for the necessary visa unique to your circumstances. 

Still concerned whether your business will do well in the States? As a one-stop shop for establishing your business in the US, doola is your go-to agency for bookkeeping and business formation — ensuring your business is set up for success.

Contact us today to speak with one of our leading professionals to get you started in just 10 minutes!

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