Opening a business in the US on J-1 Exchange Visitor visa

[brianitos]

Hey,

I am currently on a student exchange programme in the USA. I am returning to my home country in Europe in two months.

However, I would like to start an e-commerce business (selling on Amazon). I was wondering if I am eligible to register a business bank account here in the US, and register a LLC within my state as well? Provided I am on a visa (J-1) and will probably never ever set foot in this country again once I returned home?

Greatly appreciate your help.

 

[3ephemeralwinds]

@brianitos It should be very easy to find resources regarding what you are allowed and not allowed to do on your type of Visa. The Visas very specifically State whether you can or cannot work or generate income while here on that Visa. If you get caught working or generating income on a Visa that does not allow it it will be revoked.

I am an immigration federal agent however I haven't used anything regarding your question since studying in the academy since that isn't my particular line of work. But I do remember that it is a clear cut yes or no on working/income, and violating it is grounds to revoke.

If it is allowed on your particular Visa you may have to get an EIN so that the income can be taxed legally

 

[613jono]

@3ephemeralwinds My understanding was that he wants to set up the company while he is in the US and then use it after he leaves. If he wants to run the business during his time in the US on a visitors visa that is a huge violation and definitely not allowed.

 

[3ephemeralwinds]

@613jono gotcha, if that's the case I believe even applying to start a business entity would be a violation all the same. and in reality, it wouldnt make it any easier doing it while here or while back home. if anything, it still wouldnt be legit, because he would be using a mailing address he is at now but wont be based out of when he returns.

if so, OP i recommend getting the groundwork, such as your PO box, etc set up while here, but do not form the business legally. though youll need to likely register it at a mailbox or packing store so that someone can receive your mail for you.

 

[613jono]

@3ephemeralwinds The problem is the bank account. He has to form the business before he can open a bank account for it, and post-9/11 (PATRIOT act BS) he will find it very difficult if not impossible to open a bank account without returning to the US to do it.

 

[613jono]

@brianitos AFAIK anyone legally in the USA can establish a business and open a business bank account. (Actually you don't even need to be in the USA to establish a business.)

As you won't be living in the USA you can not create an S Corp (no LLC), it must be a C Corp. There are a few states that are better to choose than others because of tax reasons. Delaware is a popular one, as is Nevada. There may be others. You will need to pay some fees to establish the company and some more fees for the registration. You will pay a yearly registered agent fee to the business you nominate as your local agent as well (probably the same one who set up the company for you.)

When you go to open the bank account you will need your incorporation documentation and you MUST tell them that you will be managing the company remotely from outside the USA. You also must make sure you have a way to get funds from that bank account to the account in your home country. You might be able to set up online banking for this, or you might have to use the phone and call in wires manually.

Finally, not all banks will allow you to open an account, even with your ID (passport) and your business establishment documentation. You might try asking the company that sets everything up for you if they can introduce a friendly bank. This might involve flying to Delaware or Nevada to meet with that particular banker in person so you can get the bank account set up. Do not wait until you are outside the USA to open your account as it is now nearly impossible to open a bank account remotely. The bank will probably want some extra documentation that proves your home country address, you will need to confirm this with them directly.

 

[3ephemeralwinds]

@613jono This not always the case. See my post below.

 

[brianitos]

@613jono Thanks a lot. That is awesome!
How big of a difference of taxation are we talking compared to other states? My business will be ecommerce (simply selling stuff on Amazon), so I am guessing we should be looking at sales tax (only)?
What if there is no friendly bank that is going to accept me? Basically the money I spent on registering the biz goes down the toilet, right?

 

[613jono]

@brianitos If you want to run the business while you are in the US then that definitely goes against your visa. If you want to set it up for later use then you are probably okay. The best thing would have been to establish the business remotely before you came so you could open the bank account while you are in the US. You still couldn't earn money legally while on a visitor visa of course!

 

[brianitos]

Thanks guys. I am a bit disappointed because this will probably not work. I will reach out to my advisor at school and see what he says.