How To Establish a Business in the US without an Investor Visa
Even
if you do not meet the investment capital threshold or qualifying nationality,
you can still establish a business in the US. without an actual investor’s
visa.
Your
first step will be to apply for a B visa from the US Embassy or Consulate.
The
B visa is a category of non-immigrant visas issued by the United
States government to foreign
citizens seeking entry for a temporary period. The two types of B
visa are the B-1 visa, issued to
those seeking entry for business purposes, and the B-2 visa, issued to those seeking entry for tourism or other
non-business purposes. In practice, the two visa categories are usually
combined together and issued as a "B-1/B-2
visa" valid for a temporary visit for either business or pleasure, or
a combination of the two.[1]
The
USCIS website states “You may be eligible for a B-1 visa if you will be
participating in business activities of a commercial or professional nature in
the United States, including, but not limited to:
· Consulting with business associates
· Traveling for a scientific, educational, professional or business
convention, or a conference on specific dates
· Settling an estate
· Negotiating a contract
Eligibility Criteria
You
must demonstrate the following in order to be eligible to obtain a B-1 visa:
· The purpose of your trip is to
enter the United States for business of a legitimate nature
· You plan to remain for a specific
limited period of time
· You have the funds to cover the
expenses of the trip and your stay in the United States
· You have a residence outside the
United States in which you have no intention of abandoning, as well as other
binding ties which will ensure your return abroad at the end of the visit
· You are otherwise admissible to the
United States
Limitations of a B-1 visa
-You can
set up a corporate entity, lease office space, hire employees, obtain a tax
identification number and open a corporate bank account.
-You are
not permitted to work for and obtain compensation from the US corporation while
in the US. Basically, you are a classifying yourself a “passive investor”.
-A person
who is lawfully residing in the US with US citizenship, permanent residence or
authorized employment status will need to be hired to run the day to day operations
of the company.
-You can
perform work for the company while you are outside the US.
-You can
derive profit payments from the US corporation.
- If you do decide to visit the US on a B-1 visa your stay will be
limited to a period of six months. Filing extensions of stay are not advisable.
- It is recommended you do not stay for more than 3-4 months on
any authorized 6 months I-94 stay as this will trigger heightened scrutiny upon
entry into the US.
-
US investment income is generally taxed at a flat 30% tax rate, which
may be
reduced by a tax treaty.
Consequences
- If
you open a business in the US with a B-1 , you will need to be very careful to
not violate the limitations of the B-1 visa. For example , working and getting
paid by the company while in the US. If you do so and are caught, you will be
deemed to have committed visa fraud and barred from re-entry into the US for a
minimum of five years or longer.
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