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5 things you need to start a business if you live abroad

November 4, 2024
Andrea Salerno

As an entrepreneur or founder living outside the U.S., you’re always seeking new opportunities and markets, and sometimes, the most promising ones seem just out of reach. Whether you’re looking to start a new business or expand an existing one, entering the U.S. market from abroad could unlock massive and highly profitable opportunities.

However, a great business idea alone isn’t enough when you’re navigating the legal, cultural, and logistical challenges from a distance. What works in your home country may not seamlessly translate to your target market in a new country like the U.S. 

Fortunately, you can open an LLC in the U.S. as a non-resident and tap into its vast potential. But to succeed, you’ll need more than ambition — you must equip yourself with the right tools and knowledge to navigate the complexities of launching an overseas business. Let’s explore the five key factors you’ll need to get started.

1. Clear business plan

The foundation of any successful venture — especially one launched from abroad, whether a small business or a large enterprise — is a solid business plan. Start by identifying your goals: Why are you launching this endeavor? Are you looking to fill a gap in the market or expand an existing enterprise? 

Next, define your target audience and conduct thorough market research. Who are your ideal customers, and what are their needs in the U.S. market? How do those needs differ from those of your local market?

Consider the starting point of your business. Are you building from scratch, expanding into the U.S. market, or acquiring an existing business? Don’t overlook budget and funding — how much capital do you have, and what are your funding sources?

By answering questions like these, you’ll simplify business formation tasks, build investor confidence, and ensure your goals are clearly communicated to legal entities and stakeholders.

2. Incorporation checklist

Next, you’ll need to incorporate your business, which is typically a legal requirement. Business registration protects your personal assets by limiting liability to the business itself.

Setting up a business overseas is more complex than simply working for a U.S. company while living abroad. To simplify the process, you’ll need a checklist of incorporation documents and key tasks, including selecting a state for incorporation, filing the articles of incorporation, acquiring a tax ID, and appointing a registered agent.

Although there’s no definitive timeline for incorporation, it’s wise to do it before signing contracts or hiring employees because you want a corporation in place to limit liability. Each state has specific requirements, so be sure to review them.

One key requirement is having a U.S. address in the state where you plan to incorporate. For those living abroad, securing a virtual address and business presence can fulfill this requirement, providing a U.S.-based address without needing to be in the country. This allows you to meet legal obligations while managing your business remotely. 

Choosing the right state for incorporation is also crucial. Not all states offer the same benefits, and some are known for their favorable regulations and business tax rates.

Delaware is a top choice due to its flexible business formation laws and business-friendly tax code. Despite having just over 1 million residents, more than 1 million business entities are headquartered there, and over 60% of Fortune 500 companies list Delaware as their state of incorporation. Other popular states include Wyoming, South Dakota, Texas, and Ohio, largely because they lack corporate income taxes.

3. Legal and regulatory support

Navigating the legal and regulatory environments of another country is no small task. Setting up a foreign business in the U.S. from abroad introduces layers of complexity, including managing cultural differences that may affect business practices, customer expectations, and communication styles. Securing legal and regulatory support early on is crucial to overcoming these challenges. 

Conducting due diligence when selecting legal and financial advisors and reviewing U.S. regulations will help you avoid unexpected fines or compliance issues.

Navigate international business law

Starting a business in another country requires understanding that country’s legal, regulatory, and tax frameworks, as well as those in your own. On top of that, international business law can present complexities you may not have encountered before. 

For example, to start a business in the U.S., you’ll typically need:

  • A U.S. bank account
  • A registered agent in each state where you operate
  • A physical address within the U.S.

Consulting a lawyer experienced in U.S. international business law helps you avoid unexpected fines or sanctions. They’ll also assist with identifying potential issues or unfamiliar regulations.

Meet the relevant tax requirements

Taxes can be complicated for business owners living abroad, often involving tax laws in both countries (where you live and where you do business). Local tax requirements can vary widely. In the U.S., taxes, including business and sales tax, vary by state.

If you’re setting up a business in the U.S., you won’t need to worry about value-added tax (VAT) or goods and services taxes (GST). However, if you’re an expat American starting a business overseas, you may encounter them.

It’s highly advisable to enlist the help of an experienced accountant or tax expert in the country where you plan to operate. Finding someone with expertise in international business can further ensure compliance and help you avoid costly mistakes.

4. U.S. bank account

Opening a U.S. bank account is a key requirement when starting a business in the U.S., but it can present hurdles for non-residents. Many banks require proof of a physical U.S. address, various forms of ID (a passport is a reliable option), and a foreign tax identification number (FTIN) or a U.S. TIN/ITIN if you’ve already been issued one. Forming strategic partnerships with local financial institutions or consultants can help streamline this process and ensure you meet the necessary requirements.

That first requirement — having a U.S. address — might seem like a significant hurdle, but there’s a practical solution. It’s possible to obtain a physical U.S. address through virtual address services, allowing you to meet the bank’s requirements without needing to set foot on American soil. (More on this in the next section.)

Keep in mind that simply having a U.S. bank account won’t solve all your financial transaction needs. Operating internationally means dealing with different currencies, exchange rates, and international bank transfers. But that’s a topic for another article — for now, securing a U.S. bank account is an essential first step to getting your business off the ground.

5. Virtual mail services

Even in today’s tech-driven world, managing a business entity in the U.S. means complying with an assortment of old laws, some of which have been in place for centuries. One of these requirements is having a physical address where you can receive mail. 

Even if you don’t need to send or receive physical mail regularly as a part of your business operations, physical mail remains essential for legal, regulatory, U.S. tax, and financial matters — especially during the early stages of business formation.

For entrepreneurs, especially those running a business from abroad, using a virtual address for startups offers a practical solution. It provides you with a physical U.S. address for incorporation and mail handling, ensuring you stay compliant with regulatory requirements without needing to be physically present.

This service is valuable for businesses of all sizes — from LLCs and startups to established enterprises — but it’s especially useful for those needing to establish a business presence in a state or country different from where they’re located. Virtual mail services allow you to manage essential correspondence while focusing on growing your business, no matter where you live.

Virtual address

The first step to enabling virtual mail service is obtaining a virtual address. A virtual address is a real physical address that your business can use for a variety of purposes. Entrepreneurs often rely on virtual addresses during business formation to open a U.S. bank account and establish a professional presence in key locations. 

How does it work? In short, you rent a virtual address from a service provider. This address may be in an office park, an industrial zone, or even a mailbox storefront. While you don’t physically occupy the space, your business “owns” the address for legal and tax purposes.

Both U.S.-based and international founders use virtual addresses to establish their businesses in strategic cities and states. This can help you situate your business in a location with favorable tax laws and regulatory standards, even if you’re operating from abroad.

Virtual mailbox

Some providers may only offer a virtual address with limited mail-handling capabilities. If you plan to regularly receive and manage mail through your virtual address, it’s important to choose a provider that also offers virtual mailbox services.

Virtual mailbox service includes a virtual address but adds essential features such as mail handling, digitization, online viewing, and options for the destruction or consolidation of physical mail. Some providers even offer additional capabilities like check cashing and registered agent services.

A virtual mailbox offers unmatched flexibility and convenience for U.S. business owners. If you’re operating from abroad, the benefits are even greater — drastically reducing wait times and eliminating hefty international shipping costs. With instant digital access to your mail, you can respond promptly to time-sensitive correspondence, staying on top of critical business matters without delays. 

Registered agent

A registered agent acts as your business’s official point of contact for legal correspondence in the state where you operate. Many U.S. states require corporations to have a registered agent physically located in the state to conduct business there. This can be a significant challenge for founders living overseas who want to expand into multiple U.S. states.

Fortunately, some virtual mail providers, like Stable, offer registered agent services alongside their virtual address offerings. With Stable’s registered agent services, you can easily designate a registered agent in any state where you need one, ensuring compliance with state regulations and overcoming this business requirement without being physically present.

Establish your business with virtual mail services from Stable

Starting a business from abroad can feel overwhelming, with legal hurdles, regulatory requirements, and the need for a U.S. bank account and address. Whether it’s setting up a virtual address for incorporation, finding a registered agent, or managing your mail, each step is essential to getting your business off the ground.

That’s where Stable comes in. We simplify every step of the process by offering tailored virtual addresses, efficient mail handling, and reliable registered agent solutions. With Stable, you can seamlessly manage your U.S. business from anywhere in the world, while staying compliant with all the legal and logistical requirements — without ever needing to set foot in the country.

Let us handle the logistics while you focus on growing your business. Get started with Stable today!

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