Can You Really Not Start a Company in the U.S. Without a Green Card? Let's Find Out!

Can You Really Not Register a Company in the U.S. Without a Green Card? Let’s Find Out!

In recent years, with the acceleration of globalization and the increasing frequency of cross-border business activities, more and more Chinese entrepreneurs and investors have turned their attention to overseas markets, especially the United States - the world’s largest economy. However, for many non-U.S. residents who are considering starting a business or establishing a company in the U.S., a common question arises is it really impossible to register a U.S. company without a green card - permanent residency? The answer, in fact, is not absolute.

The U.S. commercial legal system is relatively open and generally welcoming to foreign entrepreneurs. Even without a green card, it is entirely possible for non-residents to establish a company in the U.S., as long as they comply with relevant laws and procedures. So, how exactly can one go about doing this? And what key considerations should be kept in mind? Let’s explore the topic in depth, incorporating recent news and policy developments.

I. Legal Basis for Registering a U.S. Company Without a Green Card

Under U.S. federal law and the company registration regulations of individual states, there is no legal requirement that a company founder must be a U.S. citizen or permanent resident green card holder. Many U.S. states, especially Delaware and Nevada - two of the most popular states for business registration - allow non-residents to incorporate either a Limited Liability Company LLC or a Corporation.

Take Delaware as an example the state is renowned for its well-developed corporate law framework and business-friendly policies. Over 60% of publicly traded companies and more than half of the Fortune 500 companies are incorporated in Delaware. Even non-U.S. residents can complete the registration process by appointing a Registered Agent - a local representative authorized to receive legal documents on behalf of the company.

II. Registration Process and Key Steps

While it’s possible to register a U.S. company without a green card, foreign entrepreneurs must follow several important steps

1. Choose the Right Business Structure

The most common options are Limited Liability Company LLC and C-Corporation C-Corp. LLCs are simpler and offer tax flexibility, making them ideal for startups. C-Corporations, on the other hand, are more suitable for businesses planning to raise capital or go public.

2. Select the State of Registration

As mentioned, Delaware and Nevada are popular choices due to their favorable legal and tax environments. However, if your company will primarily operate in a specific U.S. state, it’s usually best to register there.

3. Appoint a Registered Agent

U.S. law requires every registered company to have a Registered Agent in the state of incorporation. This agent is responsible for receiving legal notices and official correspondence. Foreigners can hire a local agent service to fulfill this requirement.

4. Apply for an Employer Identification Number EIN

An EIN functions as a tax ID for your company - it’s essential for opening a bank account, filing taxes, and conducting business. Non-residents can apply for an EIN online via the IRS website or through a registered agent.

5. Open a U.S. Bank Account

While it may be challenging, some U.S. banks allow non-residents to open a business account remotely, provided they submit necessary documents such as the Articles of Incorporation, EIN, and a valid passport. Banks like Citibank and JPMorgan Chase offer such services.

6. Ensure Tax Compliance and Annual Reporting

Regardless of whether the company generates profit, it must file tax returns with the IRS. Most states also require annual reports and franchise tax payments to maintain good standing and avoid penalties or loss of corporate status.

III. Recent Trends and Case Studies

In 2025, as cross-border investment and trade between China and the U.S. continue to grow, more Chinese entrepreneurs are exploring the possibility of setting up businesses in the U.S. to access global markets.

According to the latest data from the U.S. Department of Commerce, the number of newly registered foreign-owned companies in the U.S. increased by approximately 12% in the first half of 2025, with a significant rise in registrations from Asia.

For example, in June 2025, a tech entrepreneur from Shenzhen successfully registered an AI software development LLC in California. The entire process - including EIN application and bank account opening - was completed remotely with the help of a professional agent. In an interview, he noted that while the process was more complex than expected, it was entirely feasible with the right support.

Additionally, in July 2025, the Office of the U.S. Trade Representative USTR released a report emphasizing the U.S. government’s support for foreign entrepreneurs. It highlighted that the registration process for foreign-owned companies is gradually becoming more streamlined, especially with the growing adoption of digital services and remote work.

IV. Common Misconceptions and Key Considerations

Despite the feasibility of registering a U.S. company without a green card, several misconceptions and potential risks exist

Misconception Company Registration Equals Legal Work Authorization

Simply registering a company does not grant the right to work in the U.S. Foreign entrepreneurs who wish to reside and work in the U.S. must apply for a valid work visa, such as an H-1B or L-1 visa.

Neglecting Tax Compliance

U.S. tax laws are complex, especially for foreign-owned businesses. It is highly recommended to hire a qualified accountant or tax advisor to ensure full compliance.

Underestimating Operating Costs

While setting up a company may be relatively inexpensive, ongoing expenses such as annual fees, agent fees, and accounting services can add up. Businesses should plan their budgets carefully.

Challenges in Opening a Bank Account

Although some banks offer remote account opening for non-residents, the process often involves extensive documentation and long approval times. It’s advisable to choose banks with international services and prepare all required documents in advance.

V. Conclusion

In conclusion, it is absolutely possible to register a U.S. company without a green card. U.S. laws do not exclude foreign entrepreneurs from starting businesses, and in fact, provide a structured and supportive environment for global innovation and entrepreneurship.

By following the correct procedures, maintaining compliance, and leveraging professional services, foreign nationals can successfully establish and operate a business in the U.S. However, it’s important to understand that running a business in a foreign country is never without challenges.

For non-residents considering setting up a U.S. company, a thorough understanding of local laws, tax obligations, and market conditions - combined with careful planning - is essential for long-term success. In today’s globalized world, stepping beyond national borders and entering the international market is increasingly becoming a strategic choice for ambitious entrepreneurs. The U.S. remains a land of opportunity - and it’s more accessible than many might think.