How to Build a Presence in the US from Abroad

Building a U.S. presence from abroad unlocks access to one of the world’s most dynamic markets. With the right steps, you can create a credible foundation that signals trust and reliability to partners, clients, and institutions.

With a GDP nearing $30 trillion and a consumer market characterized by substantial spending power, the US offers unparalleled potential for revenue growth and brand expansion.

It starts with practical essentials like business registration, banking options, and securing verified communication channels that meet today’s standards. Each piece adds strength to your footing in the U.S., even from thousands of miles away.

Here’s how you can make it happen effectively.

Strategic Market Research

Market research validates assumptions about customer demand, competitive positioning, and operational requirements in the US market. This research identifies specific opportunities and potential obstacles before market entry.

Primary research includes customer interviews, surveys, and focus groups with target demographics. Companies must understand American consumer preferences, purchasing behaviors, and decision-making processes.

Secondary research analyzes existing market data, competitor performance, and industry trends. Trade publications, analyst reports, and competitor websites provide valuable intelligence about market dynamics.

Choosing the Right Business Structure

Building a U.S. business presence starts with selecting the right entity, like an LLC or C-Corp, depending on your goals. Appointing a registered agent within the U.S. is essential for managing official correspondence.

Foreign companies have three primary options for establishing US operations. Each structure carries specific legal and tax implications that affect long-term business objectives.

LLCs

Foreign investors frequently choose corporations or LLCs taxed as corporations to create liability barriers and simplify regulatory compliance.

LLCs provide operational flexibility while maintaining strong liability protection for foreign owners. The structure allows multiple tax elections based on membership composition and business objectives.

LLCs can elect C Corporation status by filing Form 8832 with the IRS. This election creates a tax blocker that prevents direct US tax exposure for foreign owners.

State registration requirements vary significantly. Delaware offers established legal precedent and business-friendly regulations, while other states may provide operational advantages based on business activities.

Corporation and S-Corp

C Corporations create complete separation between foreign owners and US business operations. The structure provides maximum liability protection and established legal framework for international investors.

C Corporation taxation operates at two levels. The corporation pays federal income tax on profits at rates up to 21 percent, and shareholders pay additional tax on dividend distributions.

S Corporation election allows pass-through taxation similar to partnerships. However, foreign persons cannot own S Corporation stock, making this structure unavailable for non-resident investors.

Foreign-owned C Corporations must comply with additional reporting requirements. Form 5472 disclosure rules apply when foreign ownership exceeds 25 percent or when reportable transactions occur with related parties.

Branch profits tax may apply to C Corporations with foreign ownership. This 30 percent tax treats certain corporate earnings as constructive dividend distributions to foreign shareholders.

Selecting Your State of Registration

Choosing where to register your business significantly impacts your costs, compliance burden, and operational flexibility. While Delaware's reputation as a business haven is well-known, it's not always the best choice for foreign entrepreneurs.

Delaware

Many foreign companies choose Delaware due to its business-friendly laws and established legal framework for corporations.

• Well-established corporate law with extensive case precedent
• Specialized Court of Chancery for business disputes
• Privacy protections (ownership information not required in public filings)
• No sales tax on goods and services
• Investor appeal – venture capitalists and institutional investors prefer Delaware corporations

Florida

Florida has become increasingly popular among foreign founders particularly those from Latin America, Europe, and Asia.

Advantages:

• Large international business community
• Banks experienced with foreign entrepreneurs
• No state income tax (only 5.5% corporate income tax)
• Strong infrastructure for global trade
• Direct access to Latin American and Caribbean markets

Wyoming

Wyoming ranks among the most cost-efficient options and offers exceptional privacy protections.

Advantages:

• Lowest costs of any state
• Strong privacy – owner names not disclosed publicly
• No state income tax
• No franchise tax
• Asset protection – strong charging order protection for LLCs

Understanding Tax Obligations: PE and ECI Considerations

Effectively Connected Income (ECI) rules determine US tax obligations for foreign persons conducting business activities. The business structure selection directly impacts ECI exposure and compliance requirements.

Permanent Establishment (PE) concepts under tax treaties may provide relief from US taxation. However, maintaining a US business entity typically creates PE status regardless of treaty provisions.

LLCs taxed as partnerships generate ECI for foreign members on their distributive share of partnership income. This occurs regardless of actual cash distributions received by the foreign partners.

ECI filing obligations require foreign persons to file US tax returns and pay estimated taxes. Form 1040NR for individuals and Form 1120F for corporations capture ECI reporting requirements.

Trade or business activities within the US automatically generate ECI exposure. Foreign investors must evaluate whether business structure choices minimize or eliminate unintended ECI consequences.

Branch office operations subject the entire foreign entity to US tax jurisdiction on ECI. This creates broader exposure compared to subsidiary structures that limit US tax obligations to the domestic entity.

Obtaining a US Business Address

Once your legal foundation is in place, the next step is securing a reliable U.S. address for correspondence and credibility. Services like virtual mailboxes provide a professional address without requiring physical presence, which simplifies setup.

Companies need this address for state registration, federal tax identification, and banking requirements.

Address Requirementsare Needed For:

• State Registration: Most states require a physical address within state boundaries
• Banking: Financial institutions typically require verified US addresses
• Tax Documentation: IRS requires US address for Employer Identification Number applications

The address must be legitimate and verifiable. Post office boxes generally do not satisfy legal requirements for business registration. Companies should ensure their chosen address accepts legal documents and official correspondence.

Virtual offices provide legitimate US addresses without physical space commitments. These solutions offer professional addresses in Class A buildings while including essential business services.

Core Virtual Office Services:

• Professional business address in premium locations
• Mail receipt and forwarding services
• Local phone numbers with call handling
• Meeting room access when needed

US Bank Account Setup

Opening a US bank account has become significantly more challenging for foreign-owned businesses in 2025. Understanding the current landscape helps you avoid wasted time and plan your approach strategically.

The Banking Challenge for Foreign Entrepreneurs

Since 2024, traditional banks have implemented stricter policies requiring applicants to be recognized as a "US person" or have significant US ownership stake. This shift represents a fundamental change in risk assessment for foreign-owned businesses, driven by enhanced regulatory scrutiny.

Enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements mean banks must conduct extensive due diligence on foreign-owned businesses, often resulting in lengthy approval processes and requests for additional documentation from international sources.

What Traditional Banks Now Require

Major banks like JPMorgan Chase, Bank of America, and Wells Fargo typically require:

• In-person verification at a US branch location
• Employer Identification Number (EIN) from the IRS
• Formation documents (Articles of Organization or Incorporation)
• Proof of identity for all owners holding 25% or more (passport, proof of address)
• Proof of US operations, which may include:
  • Lease agreements or utility bills showing US locations
  • Customer contracts with US-based clients
  • Tax returns demonstrating US revenue
  • At least 3 employees for small companies or 5% of workforce for larger companies

The catch-22: Many foreign-owned businesses need a US bank account to establish operations, but banks increasingly require proof of existing US operations before opening accounts 

Even established fintech platforms like Mercury have begun rejecting certain virtual office addresses making it critical to choose your business address provider carefully. While virtual mailboxes can work for legal correspondence, banks may require evidence of legitimate business activity at that address.

The good news: several fintech platforms specifically cater to foreign entrepreneurs, offering fully remote account setup without requiring a Social Security Number such as Mercury and Wise.

The good news: several fintech platforms specifically cater to foreign entrepreneurs, offering fully remote account setup without requiring a Social Security Number.

Building a Communication Stack

Reliable communication is the cornerstone of establishing a U.S. presence. A verified U.S. phone number plays a key role in meeting Know Your Customer (KYC) compliance, two-factor authentication, and building trust with clients. VoIP services or virtual numbers provide the flexibility to operate without needing a physical SIM card.

For international businesses setting up remotely, they often need a US phone number to establish a local presence. Pairing this setup with professional email domains enhances credibility while ensuring secure and effective communication with U.S.-based clients and partners.

Navigating Payment Processors and Compliance

To operate smoothly in the U.S., you’ll need payment processors that align with local systems. Platforms like Stripe or PayPal offer easy integration for accepting payments, but ensure they support non-resident businesses during setup.

Keep compliance in mind, especially regarding Know Your Customer (KYC) requirements. Verifying your business credentials and ensuring transparent operations is crucial to avoiding disruptions.

Partnering with platforms that streamline this process helps maintain credibility while meeting 2025’s evolving standards for international entrepreneurs expanding into the U.S. market.

Adapting to Local Business Norms

Understanding and adapting to U.S. business practices enhances your credibility. Begin by familiarizing yourself with industry regulations and compliance, particularly for international entrepreneurs navigating a new market.

Tailor your branding and marketing strategies to resonate with U.S. audiences. Use culturally relevant language, visuals, and messaging that align with local preferences while maintaining authenticity.

Direct communication is preferred over indirect approaches common in other cultures. Americans typically appreciate straightforward answers and clear timelines rather than diplomatic language that might obscure important information.

Identifying Strategic Local Partners

Foreign companies must conduct thorough research to identify potential local partners who share similar values and business objectives. Industry expertise and market presence serve as primary criteria for partner selection.

Local partners should possess established customer relationships and deep understanding of regional market dynamics. Companies can evaluate potential partners by examining their financial stability, reputation, and existing client base.

Due diligence processes include reviewing partner credentials, conducting background checks, and assessing cultural fit. Legal and financial assessments help ensure partnerships align with business goals and compliance requirements.

Strengthening Your U.S. Presence Over Time

The final step in establishing your U.S. footprint is ongoing growth and adaptation. Regularly review compliance with evolving regulations, particularly if your business model involves international transactions to avoid unexpected legal challenges. Expand your professional network by attending virtual or in-person industry events in the U.S., fostering partnerships that boost credibility.

Investing in digital marketing helps maintain visibility, while customer feedback ensures you’re meeting expectations within this market. Strategic adjustments solidify a lasting presence from abroad, ensuring continued success. 

Wrapping Up

Establishing a U.S. presence from abroad isn’t just about checking off tasks—it’s about laying the groundwork for lasting success. Each step builds trust and credibility, key to thriving in a competitive market like the United States. 

Strategic planning simplifies challenges and aligns each effort with your goals. Approach this process thoughtfully to unlock opportunities that stretch far beyond borders, setting your business up for sustainable growth ahead.