How To Start a Business as an Immigrant in the US
People from all over the world have heard of the American Dream, and many come to the United States in hopes of creating a better future for their families. Part of that dream for immigrants may be to start a business in the U.S. — and that can be possible for green cardholders, certain visa holders and other permanent and non-permanent residents.
- You can start a business in the United States as an immigrant, even if you aren’t a permanent resident or you’re an undocumented immigrant.
- Some visas allow you to operate businesses and can lead to a green card for permanent resident status.
- While it may be more difficult to acquire funding, there are immigrant-friendly business loans available if you know where to look.
How to get a visa or green card to start a business in the US
While there are over 1 million “undocumented entrepreneurs” in the U.S., the most secure path to stable business ownership in the United States typically involves obtaining a green card, a visa that grants you the legal right to work in the country as a permanent or non-permanent resident.
Here’s a breakdown of visa types you can use to run a business.
| Visa type | Who is it for? | Eligibility requirements | Does it lead to a Green Card? |
|---|---|---|---|
| EB-1 visa | Individuals of “extraordinary ability” in the sciences, arts, education, business or athletics |
| |
| EB-5 visa | Immigrant startup investors |
| |
| E-2 visa | Immigrant business investors |
| , but is renewable |
| L-1A or L-1B visa | Executives opening a U.S. office or affiliate of a foreign company | Minimum one year of prior employment with affiliated foreign company | , but is renewable up to seven years |
| International Entrepreneur Rule | Immigrant business owners providing temporary (30 to 60 month) on-site assistance to a startup | Substantially own and actively manage a U.S. startup with rapid growth and job creation potential |
Visa rules change frequently, so consult with an immigration attorney to decide which entrepreneurship visa might be best in your situation. Note that some visas may not directly lead to a green card, and there could be additional non-direct pathways to consider.
Yes, DACA program recipients or “Dreamers” can currently legally start their own businesses regardless of immigration status. They can receive an ITIN (Individual Taxpayer Identification Number) to start their business, open bank accounts, apply for loans and pay federal income taxes.
Getting funding to start a business as an immigrant
Many entrepreneurs benefit from external funding, and that’s true for immigrants launching their own businesses, too. While some lenders list U.S. citizenship amongst their eligibility requirements, there are others that may be willing to lend to permanent residents and other non-U.S. citizens. Here are a few examples:
| Lender | Max. loan amount | Min. interest rate | Min. credit score | |
|---|---|---|---|---|
 | $15,000 | Not disclosed | Not disclosed | |
 | $350,000 | 8.49% | 600 | |
 | $250,000 | 7.80% | 625 | |
 | $100,000 ($150,000 for repeat borrowers) | Not disclosed | N/A |
Keep in mind that this list isn’t comprehensive or intended to represent the best business lenders on the market. There may be others that are better suited for your unique needs, but many lenders shy away from publicly listing citizenship and residency requirements online.
You may need to contact business lenders directly to understand your options.
Small Business Administration (SBA) loans have long been considered one of the best funding options for immigrants. However, it’s important to note that eligibility requirements have recently changed. As of June 2025, only businesses fully owned by U.S. citizens and permanent residents are eligible for SBA financing. Businesses that are even partially owned or managed by individuals who lack permanent legal status will need to look elsewhere for business funding.
4 steps to start a business
1. Write a business plan
Every business founder should write a business plan to guide your operations and explain your goals to investors. It should clearly address the following:
- Company description: What products and services will you sell? How will you obtain and deliver them?
- Market analysis: Who are your target customers? Who are your competitors, and why will customers choose you over them?
- Organization and management: What critical skills does your team have now and which do you need to recruit for?
- Financial projections: Realistically forecast your sales, expenses and other funding requirements for the next five years, including month-by-month details for the first year, to prepare for immediate financing needs.
2. Choose a business structure
Choosing the right type of business entity for your company can affect personal liability, how to pay business taxes, the number of business owners and what financing may be available. Business entity options include a sole proprietorship, partnership, LLC, C corp, S corp and B corp.
Immigrant business owners should be aware that “nonresident aliens” cannot be shareholders in S corps. This means that all shareholders will need to be U.S. citizens, be a permanent resident (a green cardholder) or meet IRS residency requirements.
3. Apply for an EIN
After choosing your legal structure, get an Employer Identification Number (EIN) from the IRS. It’s required for every business type except a sole proprietorship or a single member LLC with no employees — and can be helpful even for those. The person applying must already have a Social Security number or an ITIN, the latter of which is available regardless of your immigration status.
4. Manage your business finances
Finally, get ready to manage your business finances after you launch. All business operators, regardless of citizenship, will need to:
- Open a business checking account. Choose a bank that offers business accounts and check if there are citizenship requirements before applying for an account. If you need international transactions, such as letters of credit or currency exchange, make sure the bank can handle those.
- Select financial reporting software. For lower cost and complexity, choose accounting software designed for small businesses that can handle important aspects of your business, such as reporting foreign currency, tracking inventory and preparing taxes for the U.S. and any other countries where you need to file. Keep the software up to date for improved financial projections.
- Set up payroll. Payroll processing demands accuracy, timeliness and understanding of governing regulations. Penalties for late or inaccurate reporting are high — so consider using a payroll service, or at least an expert to help set up and periodically review your process.
- Get insurance. Business insurance is complex and the marketplace is constantly changing. For a small fee, an insurance broker can recommend what types of insurance are required for your business and help you obtain competitive bids from insurers.
- Separate business and personal finances. Keep your personal and business accounts separate to avoid accounting, liability and tax reporting confusion. This includes banking and credit card accounts.
3 things to consider when starting a business in the US
Starting a business as an immigrant is challenging, but it can bring a lifetime of rewards if you take time to put the right building blocks in place. When starting a business, it’s important to keep the following in mind:
1. Avoid double taxation
Taxation can be complicated for immigrants, especially if you hold citizenship in another country. It’s essential to understand what taxes you owe to what country to avoid double taxation.
H-1B visa holders who are nonresidents, for example, are taxed in the U.S. only on income that’s derived from sources within the United States or that’s connected to a U.S. trade or business, while residents are taxed the same as U.S. citizens.
You’ll also want to check the laws of your home country to find out if you’re still required to file as a nonresident.
2. Software can help
There are tools that can automatically help you avoid double taxation and ensure that you’re meeting all tax payment and filing obligations — even if you’re filing in multiple countries. This can help ensure compliance. Accounting software can also help you manage finances in other areas of your business.
3. Have a backup plan
Non-permanent residents may face challenges when running a business in the United States. For example, your visa renewal could be delayed or denied. Have a plan in place like hiring a manager or working with a business partner to keep things running smoothly in your (hopefully temporary) absence.
Frequently asked questions
Yes, in most cases, you can start a business in the U.S. even if your green card has expired. Unless your green card was conditional, an expired green card doesn’t affect your permanent resident status.
Starting a business with an expired green card will likely be more difficult, however, as you need a current green card to provide valid proof of your permanent residence status. As a result, it may be more difficult to get a loan. To prevent delays or additional challenges, you should file for renewal three to six months before your green card expires.
While you can start a business, it may not be advisable to do so in the United States if your visa is about to expire. Staying beyond your authorized visa date is a violation of U.S. immigration laws and can cause you to be ineligible for a future visa. You can, however, request an extension of stay.
It’s also important to abide by visa regulations. Some visas allow you to work or operate businesses, while others do not. You may need to change your nonimmigrant status in order to legally start a business. When in doubt, consult with an immigration attorney.
You do not need a Social Security number (SSN) to start a business in the United States. You can apply for an EIN or a business license with an ITIN. However, you will need to register your business with the IRS.
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