How to Start a Business in the USA for Foreigners: Simple Guide

There’s this funny little moment most global founders bump into sooner or later. You might be sipping karak in a Dubai café, waiting out the traffic in a Lagos hub, watching the Manila skyline turn orange, or lying on your bed in Singapore, scrolling a bit too late into the night… and suddenly the thought hits you:

“But what if I just set up a U.S. company?”

Not because you want to live there.

Not because you want a visa.

But because every serious payment gateway, marketplace, and global client seems to trust U.S.-registered businesses more.

If you’re exploring this path, you can check our simple, step-by-step U.S. company formation service, built specifically for foreign entrepreneurs

If you’ve felt this, you’re not imagining it. The United States is still one of the easiest countries in the world for non-residents to start a business—no citizenship, no SSN, no U.S. address, and no physical presence required.

This guide is the simple breakdown global founders wish they had when they started. Human, practical, and designed for people living outside America but running businesses meant for the world.

Let’s make this clear and doable.

Why Foreign Entrepreneurs Choose the U.S.

Before we dive into the actual steps, it’s worth taking a moment to see why so many founders pick the U.S. structure—even when they’re running their businesses from the other side of the world.

1. You don’t need to live in the U.S.

Foreigners can form and own 100% of a U.S. company. No citizenship, visa, or residency needed.

1. Strong global trust

Clients across the world trust invoices, contracts, and branding from American companies more than almost any other jurisdiction.

1. The easiest access to Stripe and PayPal

Both Stripe and PayPal treat U.S. entities as “low-risk,” which makes approvals smoother and limits higher.

1. No restrictions for online businesses

SaaS, eCommerce, agencies, education tools, logistics—almost every online business is allowed.

1. Clean, established laws

The U.S. has one of the world’s strongest contract and business protection environments.

1. The world’s largest consumer market

If you’re selling to Americans, a U.S. company makes payments, taxes, and banking far simpler.

Foreign founders don’t choose America for the lifestyle.

They choose it for the infrastructure.

Before You Start: Key Preparations Every Non-Resident Must Make

You can form a U.S. company fully online in 2–10 business days, but planning things properly saves you from problems later.

Here’s what you need to get right first:

Choose the right business structure (LLC or C-Corp)

LLC — best for:

• E-commerce sellers
• Service providers
• Agencies
• Consultants
• Solo founders
• Anyone not raising capital right now

Simple compliance, flexible taxation, and ideal for 90% of foreign entrepreneurs.

C-Corp — best for:

• SaaS founders raising money
• Startups applying to accelerators
• Businesses with multiple partners and equity plans

Delaware C-Corp is the investor standard.

Pick the state strategically

Not all states are the same. Your choice changes your taxes, reporting requirements, and speed of doing business.

Most non-residents pick:

Wyoming → privacy + lowest maintenance

Delaware → high credibility + strong legal protections

Florida → eCommerce sellers needing fast resale certificates

Texas → no franchise tax for businesses below $2.47M revenue

The state you choose should match:

• Your business model
• Your future plans
• Your marketplace/gateway requirements
• Not random recommendations from social media.

Decide your U.S. business address

You can’t use a P.O. box or a mailbox-style forwarding address.

Payment gateways reject them.

You need:

• A real U.S. business address
• Registered agent address (for legal mail)
• Matching details across all documents
• Consistency is the deciding factor.

Prepare for EIN + ITIN requirements

Here’s where most non-residents get confused.

EIN (Employer Identification Number):

Required for:

• Banking
• Payment gateways
• Tax filings
• Marketplace approval
• Contractor payments

Everyone needs an EIN.

ITIN (Individual Taxpayer Identification Number):

Needed for:

• PayPal U.S. verification (strongly recommended)
• Filing personal U.S. tax returns (if required)
• Claiming tax treaty benefits
• Certain banking and financial setups

You don’t need an ITIN to form your company, but PayPal usually asks for it later. Foreign entrepreneurs often secure an ITIN early, especially if PayPal or U.S. tax filings will be part of the business

Understand compliance before you begin

You don’t need to fear compliance—just acknowledge it.

Every U.S. company has:

• A yearly state report
• Yearly federal taxes
• State taxes (only if required in your state)
• Basic bookkeeping obligations

It’s simple if you maintain it from the beginning.

Painful if you ignore it for a year.

How to Start a Business in the USA as a Foreigner: Step-by-Step Guide

Here’s the clear, simple path global founders follow.

Step 1: Choose your company structure and state

This is the foundation.

Pick based on your:

• Business model
• Target customers
• Future growth plans
• Funding goals

If unsure:

LLC in Wyoming or Delaware is the safest default for non-residents.

Step 2: Register your company

This includes:

• Company name
• Articles of organization (LLC) or incorporation (C-Corp)
• Registered agent details
• Operating Agreement / Bylaws

You can form a company fully online, from anywhere in the world.

Step 3: Get your EIN

The EIN is your business identity.

Without an EIN, you cannot:

• Open a business bank account
• Accept payments through Stripe or PayPal
• File taxes
• Hire employees or contractors
• Use major financial tools

Foreigners can obtain an EIN without an SSN — but the application must be done correctly.

Step 4: Open a U.S. business bank account

This is where many foreign founders panic.

But the good news?

You can open banking remotely through:

• Mercury
• Relay
• Payoneer (as a secondary account)
• Some fintech-friendly traditional banks

If traditional banks aren’t accessible, you can begin with a verified international fintech bank account, which integrates smoothly with Stripe and PayPal.

Your business banking must match your:

• Company state
• EIN
• Business address
• Operating Agreement

Gateways check this carefully.

Step 5: Set up payment gateways

Once your company + EIN + banking + website are ready, you can apply for:

• Stripe
• PayPal
• Shopify Payments
• Braintree
• Authorize.Net

Approval depends on:

• Consistent documents
• Realistic website
• Clear refunds/shipping policies
• Matching address everywhere

Foreign founders get rejected when something doesn’t match.

Step 6: Handle compliance and taxes properly

Here’s what you must file each year:

LLCs

• Federal tax filing (even with no income)
• State annual report
• State franchise tax (depends on state)
• Sales tax (only if you have nexus)

C-Corps

• Federal corporate tax return
• State taxes
• Payroll taxes (if employees)
• Franchise tax (varies)

This is manageable—even simple—when done properly from the beginning.

Filing yearly returns through a reliable U.S. tax filing service ensures your company stays compliant even if you operate from overseas.

Common Mistakes Foreign Founders Make

If you’re not careful, these mistakes will cost time, money, or account access.

1. Confusing business formation with visa eligibility

A U.S. company does not give you the right to live or work in the U.S.

1. Using mailbox-style addresses

Gateways will instantly reject you.

1. Applying for Stripe/PayPal too early

Apply after your company, EIN, banking, and website are ready.

1. Not filing annual taxes

Even businesses with zero income may need to file.

1. Mixing personal and business banking

This is a guaranteed compliance mess.

1. Ignoring state-specific rules

California is not Wyoming.

Delaware is not Texas.

1. Assuming no income = no paperwork

Wrong. The U.S. is paperwork-driven, not income-driven.

1. Not planning ITIN early (if using PayPal)

PayPal almost always asks for ITIN verification.

These are avoidable with the right guidance.

Expert Tips for Foreign Entrepreneurs

Here are practical, one-line tips founders wish they knew earlier:

• Match your company to your customers, not your home country.
• Keep every document identical: same name, same address, same formatting.
• Choose a state that fits your business model, not your friend’s.
• Set up banking before touching payment gateway applications.
• Start with Stripe + PayPal for safer, diversified payouts.
• Have a clean website before applying for gateways.
• Do not delay compliance—late filings create bigger problems.
• Keep a separate business bank account from day one.
• If PayPal is part of your plan, get ITIN sooner, not later.
• Think long-term; formation is just the beginning.

If You Want an Expert-Led, Hassle-Free Setup

If you don’t want to deal with IRS forms, EIN delays, ITIN applications, banking hurdles, compliance rules, and gateway approvals, Business Globalizer handles everything end-to-end.

They help foreign entrepreneurs with:

• U.S. company formation
• U.K. and UAE formation
• EIN, ITIN, VAT, TRN
• Banking setup (Mercury, Relay, Wise, Revolut, Payoneer)
• Stripe and PayPal support
• High-risk merchant accounts
• Annual compliance and tax filings
• Trademark registration
• Resale certificate (U.S.)
• U.S. eCommerce preparation

Especially two services that matter most:

• U.S. Company Formation (fast, compliant, and built for non-residents)
• ITIN Application Support (essential for PayPal verification and tax filings) through IRS-verified CAA

They take care of the technical work so you can focus on building the business you actually want.

Final Thoughts

Starting a U.S. business as a foreigner is far more accessible than most people think. You don’t need to fly there, live there, or have a credit history. What you do need is structure—clear paperwork, a proper company, clean banking, and consistent documents.

Once those pieces are in place, everything becomes easier:

• Stripe approvals
• PayPal stability
• Global client trust
• Tax reporting
• Long-term scaling

Your country of residence doesn’t limit your ambitions.

Your structure does.

Choose the right structure, and the U.S. becomes one of the simplest places in the world to run a global business from anywhere.