Can I Start a Company in the U.S. with a Permanent Green Card? A Full Analysis!

Can Green Card Holders Register a Company in the United States? A Comprehensive Guide

For many individuals holding a U.S. Permanent Resident Card commonly known as a green card, starting a business is a key path to personal fulfillment and financial independence. A common question that often arises is Can green card holders legally start a business in the U.S.?

The answer is a clear yes - green card holders can and do start businesses in the U.S., and they enjoy nearly the same legal rights as U.S. citizens when it comes to entrepreneurship. This article will explore the legal framework, registration process, tax implications, and practical considerations for green card holders looking to start a business in the United States.

1. Legal Perspective Green Card Holders Have the Right to Start a Business

Under U.S. law, citizenship is not a prerequisite for registering a company. This means that not only U.S. citizens, but also permanent residents green card holders and certain categories of temporary visa holders, can legally start a business if they meet the necessary legal requirements.

As legal permanent residents, green card holders have the right to live and work permanently in the U.S., which naturally includes the right to start and operate a business. According to the U.S. Citizenship and Immigration Services USCIS, green card holders generally enjoy the same economic rights as U.S. citizens, including the rights to employment, investment, and entrepreneurship.

From a legal standpoint, green card holders can register a company in any U.S. state and engage in commercial activities without restrictions based on immigration status.

2. The Business Registration Process Is the Same for Green Card Holders

The steps to register a company in the U.S. are not affected by citizenship or immigration status. These typically include

1. Choosing a business structure e.g., LLC, Corporation, Sole Proprietorship

2. Selecting a state for incorporation

3. Filing formation documents

4. Applying for an Employer Identification Number EIN

5. Opening a business bank account

6. Obtaining necessary licenses and permits

For example, the process for forming a Limited Liability Company LLC usually involves

Choosing and verifying the availability of a business name

Filing Articles of Organization with the state Secretary of State

Drafting an Operating Agreement

Applying for an EIN through the IRS website

Opening a business bank account

Securing local and state business licenses

One point to note While green card holders can register a business without issue, some banks may require a Social Security Number SSN or an Individual Taxpayer Identification Number ITIN to open a business bank account. Most green card holders already have an SSN, so this typically does not pose a problem.

3. Tax Implications Are Closely Tied to Green Card Status

While there are no legal restrictions on starting a business, tax obligations are significantly influenced by green card status.

Green card holders are considered U.S. tax residents, which means they are required to report their worldwide income to the Internal Revenue Service IRS. This differs from many temporary visa holders, who may be classified as non-resident aliens and are typically only taxed on U.S.-sourced income.

All companies registered in the U.S. must comply with federal and state tax laws, regardless of the owner’s nationality or immigration status.

For pass-through entities such as sole proprietorships or partnerships, the business itself does not pay corporate income tax. Instead, the income passes through to the owner’s personal tax return, where it is taxed accordingly.

If the business hires employees, operates internationally, or engages in import/export activities, it may face additional compliance and tax reporting requirements.

4. Practical Considerations for Green Card Holders

Although green card holders have full legal rights to start and operate a business, there are several practical points to keep in mind

Maintaining Green Card Status Green card holders should ensure they maintain their legal residency. Prolonged absence from the U.S. may jeopardize permanent resident status. It is advisable to maintain a physical presence in the U.S. and actively manage the business locally.

Choosing the Right Business Structure Depending on the nature of the business and long-term goals, selecting the appropriate legal structure LLC, S Corporation, C Corporation is crucial. Each structure has different implications for taxation, liability protection, and fundraising capabilities.

Hiring Employees If the business plans to hire staff, it must comply with federal and state labor laws, including minimum wage requirements, payroll taxes, and health insurance obligations.

Legal Compliance Green card holders must ensure that their business complies with all applicable laws, including anti-money laundering regulations and export controls, especially when engaging in international trade.

Naturalization Considerations For those considering U.S. citizenship in the future, owning and operating a business can demonstrate strong community ties and responsible tax behavior, which may support a future naturalization application.

5. Recent Developments A More Entrepreneur-Friendly U.S. Environment

According to a 2025 Wall Street Journal report, the U.S. has been increasingly supportive of entrepreneurship, particularly in sectors such as technology, green energy, and healthcare. The government has introduced tax incentives, startup grants, and financing support for small and medium-sized businesses.

In mid-2025, the U.S. Department of Commerce released a report showing that the number of new business registrations reached a record high that year, indicating a strong and growing entrepreneurial ecosystem.

This trend reflects the important role that immigrant entrepreneurs - including green card holders - are playing in driving innovation and economic growth in the U.S.

Conclusion

In summary, green card holders have the full legal right to register and operate a business in the United States. There are no immigration-based restrictions on business formation, and the registration process is identical to that of U.S. citizens.

While green card holders are subject to U.S. tax laws on a global income basis, this should not deter them from pursuing entrepreneurial opportunities. With proper planning, compliance, and understanding of tax obligations, green card holders can successfully launch and grow a business in the U.S.

Starting a business in America is not only possible for green card holders - it is a viable and encouraged path toward economic integration and long-term success.