Information for international entrepreneurs

The United States is one of the most business-friendly countries in the world, offering a stable legal framework, strong consumer demand, and access to global financial networks. For international entrepreneurs, establishing a U.S. business entity—whether an LLC or a C-corporation—can open new opportunities, from reaching U.S. customers to accessing venture capital and business banking solutions. Additionally, forming a U.S. entity allows entrepreneurs to establish credibility with suppliers, clients, and partners both domestically and internationally. Having a U.S. business also facilitates smoother interactions with global partners and investors who prefer working with entities that operate within a well-regulated jurisdiction.

At Dappr, we recognize the unique challenges and requirements that international entrepreneurs face when forming and operating a U.S. business. Our platform is optimized to support international founders, making the process as seamless as possible while ensuring compliance with U.S. regulations. Our services are tailored to address the complexities of international business formation, including tax compliance, banking requirements, and state-specific legal obligations.

Why International Entrepreneurs Choose to Form a U.S. Business

There are several reasons why entrepreneurs from around the world choose to establish a business entity in the United States:

Access to the U.S. Market and Customers

The U.S. is the world’s largest consumer economy, with a strong legal framework that protects business owners and intellectual property. By forming a U.S. business, international entrepreneurs can legally conduct business in the country, open merchant accounts, and establish credibility with U.S. customers. Moreover, having a U.S. business presence can make it easier to engage with American vendors, suppliers, and financial institutions, which often prefer working with domestic entities. Businesses operating in the U.S. can also benefit from federal and state-level economic incentives, grants, and business development programs.

Venture Capital and Investor Opportunities

Many investors, particularly venture capital firms and angel investors, prefer to invest in U.S.-based companies due to the legal protections, corporate structures, and tax benefits available. A Delaware C-corporation, for example, is the preferred structure for startups seeking venture funding. Additionally, access to crowdfunding platforms and government-backed grants can be easier for businesses operating within the U.S. Investors feel more secure investing in U.S.-registered businesses due to the robust regulatory frameworks, corporate governance structures, and extensive legal precedents available for resolving disputes.

Business Banking and Payment Processing

A U.S. business entity enables access to business banking solutions, including the ability to open a U.S. business bank account. This is crucial for handling international transactions, receiving payments from U.S. customers, and integrating with payment processors such as Stripe, PayPal, and other financial services. Additionally, having a U.S. bank account can help businesses reduce transaction fees and streamline financial operations. Many global e-commerce platforms and financial institutions require a U.S. bank account for smoother transactions, making business operations more efficient for international entrepreneurs.

Limited Liability Protection

An LLC or C-corporation provides limited liability protection, meaning that the personal assets of business owners are protected from business debts and liabilities. This is particularly beneficial for entrepreneurs operating in high-risk industries or managing substantial business transactions. This legal protection ensures that personal finances remain separate from business operations, shielding entrepreneurs from lawsuits or financial setbacks that may arise during business activities.

Global Expansion Opportunities

Having a U.S. company can also make it easier to expand operations into other markets, as many international trade partners recognize and trust U.S.-registered businesses. Additionally, international entrepreneurs may find it easier to form partnerships, sign contracts, and attract global clients by having a U.S. business entity. U.S. businesses often gain preferential access to international trade agreements and favorable taxation policies in some countries, which can lower costs and reduce administrative burdens when expanding globally.

Tax Advantages and Treaty Benefits

The U.S. has tax treaties with numerous countries, which can help reduce double taxation for international entrepreneurs. While tax obligations vary based on the type of entity and business structure, forming a U.S. business can often result in tax efficiencies that benefit foreign entrepreneurs. Some jurisdictions offer exemptions or reduced withholding tax rates on income derived from U.S. operations, further incentivizing business formation.

How Dappr Supports International Entrepreneurs

Dappr is built with international entrepreneurs in mind, providing a seamless experience for those looking to form a U.S. business entity. Here’s how we make it easier:

Optimized for International Founders

Unlike many business formation services, Dappr is designed to work with non-U.S. residents and entrepreneurs without an SSN (Social Security Number). Our onboarding process guides international users through additional requirements, such as obtaining an EIN (Employer Identification Number) from the IRS. We provide clear instructions and proactive support to ensure that international entrepreneurs navigate the formation process successfully. We continuously update our processes to comply with evolving regulatory requirements to ensure entrepreneurs have the most up-to-date guidance.

Registered Agent Services

A U.S. business must have a registered agent with a physical address in the state of formation. Dappr provides this service as part of our plans, ensuring compliance with state requirements. This also helps international entrepreneurs maintain a local point of contact for legal and compliance matters. Our registered agent service ensures that businesses receive official correspondence, legal notices, and compliance documents in a timely manner.

Compliance Monitoring

International entrepreneurs often face additional compliance requirements, including state and federal tax obligations. Dappr helps monitor key compliance deadlines and keeps businesses informed about their obligations. We offer automated compliance alerts and guidance to ensure ongoing legal compliance. Our system proactively tracks changes in regulatory requirements and keeps entrepreneurs informed about necessary filings, tax returns, and renewal deadlines.

Guidance on Key International Considerations

We offer detailed guidance for specific international scenarios, such as:

• Non-Residents and Non-Citizens: We outline the process of forming a business without a U.S. address or SSN.

• EIN Acquisition: For those without an SSN, we handle the manual EIN application process with the IRS, which takes longer than electronic filings.

• Tax Implications: While we do not provide tax advice, we help entrepreneurs understand their general obligations and recommend consulting a tax professional.

• Foreign Qualification: For international entrepreneurs planning to do business in multiple U.S. states, we provide support with foreign qualification filings.

• Business Structure Advice: We guide entrepreneurs on choosing between an LLC, C-corporation, or other business structures that best suit their needs.

Additional Requirements for International Entrepreneurs

While forming a U.S. business is possible for non-residents, certain restrictions apply:

Sanctioned Countries and Residence Restrictions

The U.S. government prohibits business formation services for individuals residing in or having ties to countries subject to U.S. sanctions. Dappr strictly adheres to these regulations and will not process applications for individuals from restricted jurisdictions.

For a detailed list of sanctioned countries and residence eligibility criteria, please refer to our Sanctioned Countries and Residence Eligibility article.

Physical Address Requirements for Banking

To open a U.S. business bank account, most financial institutions require a U.S. address that is not a P.O. Box. Dappr offers guidance on obtaining a compliant address through our TruResidence service, though it carries additional costs and strict verification requirements.

Longer Processing Times for Non-U.S. Residents

For non-U.S. residents, the EIN application process takes longer, often requiring 4-12 weeks due to manual IRS processing. Entrepreneurs should plan accordingly when setting up their business.

Get Started with Your U.S. Business Today

International entrepreneurs have much to gain by establishing a U.S. business entity, and Dappr makes the process as smooth as possible. Whether you’re launching a new startup, expanding into the U.S. market, or seeking investment, our platform is built to support your needs. Start your business formation journey today with Dappr!