Starting a business in the U.S: A guide for Indian residents with requirements, fees, and opening a US business account

Registering a company in the U.S. has many more benefits than just access to the U.S. market, it could also let you take advantage of American operation and payment processes, scale your business and meet the American investor community. Want to know what it takes to open a business in the U.S. from India? Read on to learn what to expect, where there may be challenges and how to get started.

Table of contents
Can you register a company in the U.S. from India? Different types of companies in the U.S. Requirements to start an American company from India What does it cost to run an American company? Starting costs for setting up the company Annual fees for compliance and taxes Starting a business account for an American company Moving to the U.S. from India Startup / Entrepreneur Visa Program

Can you register a company in the U.S. from India?

Yes, Indians can register an existing business in the U.S. The business in the U.S. can be set up as a limited liability company or a corporation, but more on that in the next section.

Before you file to register the company, there are a few things to have ready before beginning the process. First, you should have your company up to date and compliant in India, and be clear on the purpose of opening a company in America. Next, you will need to have a registered agent in place in the state in the U.S. you are registering your company. This agent needs to be authorized to receive legal notices and other formal documentation in the country. You must also decide what state you want to register the company in.

Also, be ready for the process to take some time. Even once your company is registered you will need to get an Employer Identification Number (EIN), a bank account, possible licenses and pay all local, state and federal taxes.¹

To make things easier, there are private companies that help Indians set up businesses in the U.S. They can help you complete the paperwork and get the requirements in order. The companies do charge a fee for the service.

Different types of companies in the U.S.

There are many different types of companies in the U.S., but not all options are available to foreign citizens:²

• Sole proprietorship: the simplest type of company, it is a business owned and operated by one person. This is not available for non-U.S. residents.
• Partnership: A business that is owned by two people. There are different ways to set up a partnership and depends on who is legally responsible for the business. This is not available for non-U.S. residents.
• Limited liability corporation: Known as an LLC, this is a popular choice for small businesses. In an LLC the business takes legal responsibility but there are similar features to a partnership when it comes to taxes. Available to non-U.S. residents.
• Corporation: There are different types of corporations. An S Corporation is not possible for non-U.S. citizens or permanent residents, but a C Corporation is. The C Corporation lets the business take legal responsibility and each owner’s personal assets are protected in case there are any debt or action issues. But a C Corporation, with its protections for the owners, also can mean more paperwork. Available to non-U.S. residents.

Keep in mind, the type of business you open should be driven by the industry and consumer base you are working with, and your future goals.

Requirements to start an American company from India

If you have an existing business in India, here are the requirements to start an American company:³

1. State: Identify a state to register your company in the U.S. Many companies choose the state of Delaware for its business-friendly policies.
2. Name: Choose a unique business name. The name must not be held by another company in that state. If you are unsure, take a look at the state’s secretary of state website.
3. Find a registered agent: The registered agent is someone or a business in the state you’ve chosen who has a physical address. They are responsible for legal notices and other business correspondence for you in the U.S.
4. File: To register your business, you will need to file the paperwork called the Articles of Organization with the state’s secretary of state. For an LLC, this paperwork will have to include information like the business name, purpose and address.
5. EIN: the Internal Revenue Service (IRS) in the U.S. may require an Employer Identification Number (EIN) for tax purposes. Corporations require it and LLCs may only require one if there are employees. This can be filed online on the IRS website.
6. License and permits: Depending on your type of business, you will also need to file for licenses and permits for your type of industry. You can apply for these with the state.
7. Bank account: Once you have an EIN, you can open a business bank account to start making payments, paying taxes and deposit earnings. This can be a simple process once you have your business registration done.

There may be more requirements depending on your business’s industry. Do your research and ensure to get information from valid websites, like those ending .gov which signals it is a website of the U.S. government.

If you don't have an existing business but want to start a company in the U.S., there are stricter requirements. You will need to have citizenship, residency or an eligible visa for the U.S. and a Social Security Number. If you want to work for yourself while in the U.S., you must have the right work visa to do so.⁴

What does it cost to run an American company?

The costs of running a company in the U.S. depend on several factors:

• The number of employees and their salaries and benefits.
• Rent and utilities if you have a physical space.
• Equipment and supplies, which can also include shipping materials or machinery.
• Marketing or advertising costs.
• Local, state and federal taxes.
• Legal fees and insurance, if required.

For a rough estimate, the first-year average cost of running a small business in the U.S. is $40,000 USD.⁵

Starting costs for setting up the company

The starting costs depend on the type of company you want to set up and vary from state to state. Here is an example of costs for setting up an LLC. A range is provided since the cost differs from state to state:

Fee type	Amounts
Filing fee	$40 - $500 USD.
Name reservation	$10 - $50 USD.
Registered agent fees	$0 - $300 USD.
EIN filing	$0 USD.
Total	$50 - $850 USD.

These numbers are not guaranteed and the costs for establishing your LLC may be different. There also may be additional costs, like operational agreements, depending on additional state requirements.

The registered agent fee can be an annual fee. Check out the next section for other annual fees.

Annual fees for compliance and taxes

Once you are set up with a company in the U.S., you can expect to pay ongoing annual fees. Again, depending on your state, the costs can vary.

Here are some examples of fees to expect for an LLC:

Fee type	Amounts
Annual LLC fees	$25 - $4,500 USD.
Taxes	Depends on profits.
State franchise tax (if applicable)	$300 - $800 USD(example).
Reporting fees	$0 - $800 USD

There may be more fees depending on your type of business, for example, if you are doing business across state lines, the new business state may require registering as a foreign LLC (but still within the U.S.) for a fee. This can be one or two hundred dollars or more.⁶

Starting a business account for an American company

Opening a business bank account is simple once you have an American-based company. Many small, midsize and large banks across the country offer accounts to companies, and the type of account may depend on your earnings. Identify a bank that is a good fit for you - for instance, is a seamless banking mobile app important?- and make sure you meet the requirements. And keep some time aside to open the bank account, because it can take a few weeks especially if the bank asks for additional paperwork.

🔍 You can also read the full guide to opening a business bank account in the U.S.

Managing an American bank account from India can have its challenges. There is a time difference of 10.5 hours or more which can make operating the account difficult, especially without any local employees. The paperwork and maintenance needed can also be challenging if you are not in the U.S., and some banks may require you to come down to the bank to finalize.

Want a modern way to manage an American business account? Check out Wise. Over 300,000 businesses around the world use Wise Business each quarter.

Meet Wise Business

The Wise Business Account has everything the Wise Account offers, plus extra tools businesses need to grow and operate internationally.

So if you have a team, suppliers or anything else you need in India, use Wise to send payments the fast and simple way. You can transfer money at the mid-market exchange rate, which is the same exchange rate you see on Google with no markup. Plus with no hidden fees managing your global business just got easier.

Our online process lets you open and verify your US business account from India. With our commitment to providing a seamless digital experience, Wise offers an ideal alternative to traditional banks for your business abroad.

Business categories supported on Wise 👉

Moving to the U.S. from India

To move to the U.S. from India, you are required to have the correct visa for your travel purposes. If you have started a business, it doesn’t mean that you will automatically qualify for a visa to live in America. Two investor visas are available, but you must meet certain requirements to be considered:⁷

• E-2 Investor visa: This visa lets a foreign citizen live and work in the U.S. for a set amount of time. This requires approximately at least a $100,000 USD investment in a U.S. business.
• EB-5 Investor visa: This visa lets a foreign citizen live and work permanently in the U.S. This requires an investment of at least $500,000 USD in a commercial business that creates at least 10 U.S. jobs.
• O-1 visa: This visa is for people who have demonstrated exceptional achievement and ability in the arts, culture, education or business. The O-1 visa may help you qualify to move to the U.S. and start a business.

In other cases, you will have to have a work visa to come to the U.S. for employment. You can not start a business on a student or tourist visa. Always consult an immigration attorney before taking steps to move to the U.S.

Startup / Entrepreneur Visa Program

The U.S. has an International Entrepreneur Program where foreign citizens can stay in the U.S. as long as they have a 10% or more equity stake in a U.S. startup. The company also must show evidence that having the entrepreneur in the U.S. will have a positive effect on growth, company success and job creation in the country. There are restrictions and may not be available to all foreign citizens.⁸

---

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

Each business and immigration journey is different, so this is not professional advice. Instead, consider a business or financial advisor and immigration attorney when considering starting a business in the U.S. or moving abroad.

Sources used for this article:

1. Do You Need an EIN? | Internal Revenue Service
2. Choose a business structure | U.S. Small Business Administration
3. Launch your business | U.S. Small Business Administration
4. Sole Proprietorships | Internal Revenue Service
5. How Much Does It Cost To Start a Business? (Research)
6. Cost to start an LLC
7. Options for Noncitizen Entrepreneurs to Work in the United States | U.S.CIS
8. Chapter 2 - Requirements for Consideration | U.S.CIS

Sources verified on 9 November 2023.

Cover photo by Austin Distel on Unsplash.