GUEST ARTICLE BY LAWRENCE MAGER
5 Tips for Starting a Business as an Immigrant
Branching out as an entrepreneur can be an exciting and challenging time. Legal, financial, and even personal setbacks can become more difficult to handle if you are an immigrant starting a business in the United States, but these issues are not impossible to overcome. In fact, the National Immigration Forum notes immigrant entrepreneurs make a significant contribution to the U.S. economy on all levels. If you are starting a new business as an immigrant, check out the following tips to ensure a great start personally and professionally.
1. Deciding on a Company Structure
Should you designate your business as an LLC? An S-Corporation? A sole proprietorship? What do these terms even mean? They may be called by different names in your home country, or perhaps you are familiar with the terms but do not understand what you need for your specific business. And in the U.S., immigrant entrepreneurs are limited to choosing either a corporate structure or an LLC.
This is a great time to get in touch with an accountant or attorney who can help you choose the right structure for your business. In the meantime, LLCs are a great starting point for most small businesses as they help limit your personal liability. If you require investors, read about filing as a C-Corporation.
2. Registering Your Business
Don’t forget to register your business with the government. You will need to have an employer identification number, or an EIN, to file taxes every April (or every quarter, depending on the type of business structure you choose). You should also file for an individual taxpayer identification number, which is appropriate for anyone who needs to pay U.S. taxes without a Social Security number.
3. Choosing the Right Visa
It may surprise you to know that there is no designated visa status for immigrant entrepreneurs. You also don’t need to be a permanent resident to open a business and file your taxes. Despite this flexibility, you will still need a temporary visa to start a business in the U.S. Most immigrant entrepreneurs opt for an E-2 Investor visa, which is a temporary visa that allows its holder to own and direct operations of a business. It does not lead to a green card, or a permanent resident card.
4. Investigating Funding Sources
Funding for immigrants opening small businesses can come from grants, individual investors, and microloans, as Entrepreneur explains. Though you have a wide variety of funding options from which to choose, not all opportunities will be appropriate for your type of business. Refugees can investigate “angel” investing, and women immigrants who are entrepreneurs may be afforded special opportunities as well. Crowdfunding is another option worth exploring.
5. Maintaining Relationships With Family Back Home
You may have had a difficult time saying goodbye to your family and friends in your home country, but thankfully, it’s easy to stay in touch with video calls, texting, and the plethora of apps that facilitate communication through the internet.
Of course, little is better than connecting in the same place. In person visits are costlier, of course, but you can stretch your funds if you research travel arrangements via online services. For instance, if your loved ones are in Cebu, Philippines, ASAP Tickets allows you to compare flights through several airlines.
When professional obligations or funds keep you from traveling, send a balikbayan box! You can look for your best shipping options through similar services. And if your family is relying on you for financial support from afar, you can use a service to safely send money to loved ones back home, and verify you are getting the best rates and fees.
When you have difficult days, remember that your new job can be used for a purpose: even your hard days can help you grow as a person and as a professional. And if your work is a part of how you show your family members back home that you care, that’s a big incentive for staying strong and positive in your new role.
You are navigating the world of being an immigrant in a new country at the same time as you are organizing your new business. Be sure to look after the little details, including visa requirements and the small legalities of your business, and you will surely find the type of success you seek.
Use your job is all about finding fulfillment and purpose in your work life. For help in achieving your goals, connect today!