Starting a company in the United States as a foreign founder is more achievable than most people think. You do not need a US visa, a Social Security Number, or a physical presence in the country to legally form and operate a US business. What you do need is a clear understanding of the steps involved. This guide walks you through each one.
Step 1: Choose Your Business Entity
The two most common structures for foreign founders are the LLC (Limited Liability Company) and the C-Corporation. The right choice depends on your goals.
An LLC offers flexibility, pass-through taxation, and simpler compliance requirements. It works well for service businesses, consultants, freelancers, and founders who are not planning to raise venture capital. A single-member LLC owned by a non-US person is treated as a disregarded entity or a foreign-owned domestic disregarded entity by the IRS, which comes with specific filing obligations.
A C-Corporation is the structure of choice if you plan to raise funding from US investors, issue stock options, or scale toward a Series A round. Venture capital firms almost universally require a Delaware C-Corp. The trade-off is more administrative overhead and the potential for double taxation (once at the corporate level, once when dividends are distributed to shareholders).
If you are unsure which structure fits your situation, read our guide on how to invoice clients as an LLC to understand the day-to-day operational differences.
Step 2: Choose a State of Incorporation
Delaware is the most recommended state for foreign founders, and for good reason. Over 60% of Fortune 500 companies are incorporated there. Delaware has a well-developed body of corporate law, a dedicated Court of Chancery that handles business disputes quickly and predictably, and no state income tax for companies that do not operate within Delaware.
Wyoming is an increasingly popular alternative for LLCs, offering low fees, strong asset protection laws, and no state income tax. Nevada is another option. However, for any founder expecting to take VC funding, Delaware is effectively non-negotiable.
You do not need to live or work in Delaware to incorporate there. Most founders register in Delaware and then register as a “foreign entity” in whatever state they actually operate.
You can verify current filing requirements directly through the Delaware Division of Corporations.
Step 3: Appoint a Registered Agent
Every US company is required by law to have a registered agent: a person or company with a physical address in the state of incorporation who can receive legal documents on your behalf. As a foreign founder, you will almost certainly need to hire a professional registered agent service.
Services like Northwest Registered Agent, Incfile, or Stripe Atlas handle this for a small annual fee (typically $50 to $150 per year). Your formation service may include the first year free. This is a non-negotiable requirement; your company cannot legally exist without one.
Step 4: File Your Formation Documents
For an LLC, you file Articles of Organization with the state. For a C-Corp, you file a Certificate of Incorporation. Both can be done online through the state filing portal or through a formation service.
Delaware’s filing fee for a corporation starts at $89. Turnaround is typically 7 to 10 business days for standard filing, or same-day if you pay for expedited service. Once approved, you will receive a stamped copy of your formation documents. Keep these safe; you will need them to open a bank account and obtain your EIN.
Step 5: Get Your EIN Without an SSN
An Employer Identification Number (EIN) is your company’s tax ID. It is required to open a business bank account, hire employees, and file US taxes. Foreign nationals can obtain an EIN even without a Social Security Number, but the process is different from the online application that US residents use.
Non-residents must apply by phone or fax using IRS Form SS-4. The phone method is fastest. You call the IRS Business and Specialty Tax Line, answer questions about your entity, and receive your EIN verbally at the end of the call. The IRS EIN application page has full details on eligibility and the fax submission process.
Step 6: Draft Your Operating Agreement or Bylaws
An LLC should have an Operating Agreement that outlines ownership percentages, decision-making authority, profit distribution, and what happens if a member leaves. A C-Corp needs Bylaws and should issue stock to founders through a formal process.
These documents are not always required by the state, but they are essential for your own protection and for any future investors or partners. Use a lawyer if your situation is complex. For straightforward setups, templates from reputable legal platforms are a reasonable starting point.
Having a strong operating agreement also connects directly to your broader business planning. If you have not done so, our complete guide to writing a business plan will help you think through your structure, market, and growth roadmap at the same time.
Step 7: Open a Business Bank Account
Traditional US banks typically require an in-person visit and a Social Security Number. As a foreign founder, your best options are fintech-forward banks like Mercury or Relay, which accept non-resident applicants with an EIN and formation documents. This is a topic worth its own deep dive, and the SBA’s guidance on opening a business bank account provides a solid overview of what is typically required.
What Comes Next
Once your entity is formed, your EIN is secured, and your bank account is open, you are operating as a legitimate US business. From there, your focus shifts to compliance: annual reports, registered agent renewals, tax filings, and any state-specific requirements in the states where you actually do business.
The process is more accessible than it looks. Thousands of international founders launch US companies every year. With the right structure in place from day one, you set yourself up to hire, fundraise, and scale without legal roadblocks.
Ready to build your US business the right way? Join Hustler’s Library free and get your personalised roadmap.
Services like LegalZoom can simplify the business formation process and help ensure your legal documents are filed correctly.
Ready to Know Where You Stand?
The Business Journey dashboard maps your exact position across all 13 stages. Track your progress, unlock resources for each step, and build with a framework used by thousands of founders at Hustler's Library.
No credit card required · Takes 3 minutes · Personalized to your stage
