Starting a Business - United States

Most U.S. states impose no citizenship or residency requirement to form an LLC or corporation; members and shareholders may be foreign individuals, corporations, or other foreign entities. There is no federal ban on foreign nationals incorporating a domestic business.

The U.S. imposes no federal minimum paid-in capital to form an LLC or C-Corporation. State filing fees are typically $50–$500 depending on the state. Certain regulated industries (banking, insurance) have separate capital mandates set by state regulators.

The SBA outlines 10 steps: conduct market research, write a business plan, choose a legal structure, register the business name, obtain an EIN from the IRS, apply for licenses and permits, open a business bank account, set up accounting, secure financing, and launch. Federal EIN registration is free and typically instant online.

Effective March 2026, the SBA banned foreign nationals from all SBA-guaranteed programs — including the flagship 7(a) and 504 loan programs, Microloans, and Surety Bond program. Applicants must be U.S. citizens or U.S. nationals with principal U.S. residence; visa holders, refugees, asylees, and DACA recipients are explicitly ineligible.

Foreign investment in or acquisition of U.S. businesses in sectors touching national security, critical infrastructure, critical technology, or sensitive personal data is subject to mandatory or voluntary CFIUS review under FIRRMA (50 U.S.C. § 4565). CFIUS can impose conditions or block transactions; this applies especially to greenfield investments in covered sectors.

Foreign Ownership, Control, or Influence (FOCI) rules — long applied to classified defense contracts — are being expanded in 2026 to certain unclassified prime contracts and subcontracts valued at $5 million or more, requiring mitigation agreements for foreign-owned or -influenced businesses seeking federal contracting work.