If you're a South American entrepreneur thinking of launching a business in the United States, you're not alone. The U.S. continues to be a top destination for international business owners looking to expand into a stable and opportunity-rich market.
But before you can even walk into a bank to open a business account or apply for credit, there are critical steps you need to take first, and skipping any of them can create unnecessary roadblocks.
At Ayala Law, we've helped many international clients, particularly from South America, set up successful U.S. companies. This blog post breaks down exactly what you need to have in place before approaching a U.S. bank, so you're prepared, informed, and positioned for success.
Can a Foreign National Open a Business in the U.S.?
Yes, foreign nationals, including those based in South America, can own and operate businesses in the U.S. You do not need to be a U.S. citizen or permanent resident to start a company.
That said, the process is not as simple as filling out a form. From choosing the right business structure to meeting state-specific requirements and federal tax obligations, it's important to take the right legal steps from the very beginning.
What Are the Legal Requirements to Start a Business in the U.S. as a Non-Resident?
Here's what you'll need to set up your business in the U.S. before even stepping into a bank:
1. Choose the Right Business Structure (LLC or Corporation)
Most foreign business owners choose to form either a Limited Liability Company (LLC) or a C Corporation. Each has its own tax and legal implications:
- LLC: Offers flexibility, pass-through taxation, and fewer formalities.
- C Corporation: Better suited for raising outside investment but may face double taxation.
An attorney can help you determine which structure makes the most sense based on your business goals and immigration status.
2. Register the Business in a U.S. State
You'll need to decide which state to register in. Florida is a popular option for South American entrepreneurs because of its business-friendly regulations, proximity to Latin America, and large bilingual population.
Registration typically involves:
- Filing Articles of Organization (LLC) or Articles of Incorporation (Corporation)
- Appointing a Registered Agent in the state
- Paying the applicable state fees
3. Obtain an EIN from the IRS (Tax ID Number)
To open a bank account or hire employees, you'll need an Employer Identification Number (EIN) from the Internal Revenue Service. This is essentially your business's tax ID.
Note: If you don't have a Social Security Number (SSN), you'll likely need to apply for the EIN by mail or fax using IRS Form SS-4, and in many cases, through an authorized third-party designee.
4. Prepare a Proper Operating Agreement or Corporate Bylaws
Banks often ask for internal business documents, like:
- Operating Agreements (for LLCs)
- Corporate Bylaws and Shareholder Agreements (for Corporations)
These documents outline how your company is managed, who the owners are, and how decisions are made.
What Documents Do You Need to Open a U.S. Business Bank Account?
Once your U.S. company is legally formed, you can approach a U.S. bank to open a business checking account. Here's what most banks will require:
- Company formation documents (Articles of Organization/Incorporation)
- EIN letter from the IRS
- Valid passport (and potentially a U.S. visa or proof of address)
- Operating Agreement or Corporate Bylaws
- U.S. business address (a virtual office may be accepted)
- U.S.-based phone number
Tip: Some banks may also require the account holder to appear in person. Choose a bank with experience working with international clients or consider partnering with a local attorney who can help make introductions.
Do You Need a U.S. Address to Open a Business?
In most cases, yes, at least for practical reasons. While you may be able to incorporate a U.S. company without being physically present, you will need a U.S. mailing address for:
- Opening a business bank account
- Receiving official correspondence
- Filing taxes
A registered agent can help fulfill some of this need, but many business owners also establish a virtual office address or lease a physical location depending on the business type.
Do You Need a Visa to Start a Business in the U.S.?
You do not need a U.S. visa to form a business, but you do need the appropriate visa to work for or manage that business in the U.S.
If you plan to be actively involved in day-to-day operations, consult with an immigration attorney to explore options such as:
- B-1 Business Visitor Visa (limited use)
Common Mistakes South American Entrepreneurs Make When Expanding to the U.S.
Here are a few pitfalls to avoid:
- Rushing into a bank before setting up the legal structure
- Not applying for an EIN properly
- Using personal accounts for business funds
- Failing to draft proper corporate governance documents
- Relying solely on online formation services without legal review
Remember: the foundation matters. Doing it right from the beginning saves time, money, and legal trouble down the road.
Why Work with a U.S. Business Attorney?
Forming a U.S. company as a foreign national involves more than paperwork. A knowledgeable business attorney can:
- Help you choose the best state and structure
- Ensure compliance with U.S. and local laws
- Draft custom agreements tailored to your goals
- Connect you with trusted accountants, banks, and other professionals
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
