Historically, America has been seen as a leader in business and innovation, making it a desirable hub for budding entrepreneurs to start their businesses. In 2021, U.S. business profits were higher than ever, showing that America can be a strategic and equitable country to start a business.
The American dream is one that provides people with the opportunity to be successful and draws even non-citizens to consider starting their business here. However, can non-U.S. citizens even start a business in the U.S.? And if so, what do they need in order to do so successfully?
Tax IDs for Foreigners
When an entrepreneur forms a business, they need to acquire a federal Employer Identification Number (EIN), also known as a “Tax ID number.” An EIN is a nine-digit business federal tax ID that works like a Social Security number for your business. Your EIN helps you with the following:
- Filing tax returns for your business
- Opening a business bank account under the name of your business
- Properly paying and accounting for wages and payroll for your company’s employees
- Establishing credit for your business and maintaining your business’s official standing as a legal business entity
Non-U.S. citizens can also get an EIN. However, the process for foreign business entities to apply for and receive a business EIN is a bit different than the process for U.S. citizens.