How to Launch a
Business in the US as an Immigrant
Immigration is a hot topic in the United
States. Sadly, we tend to fixate on the “burden” that immigration puts on our
financial and other infrastructures, meaning we fail to grasp the true
importance of immigrant-owned businesses. In fact, immigrants are uniquely
positioned -- and motivated -- to reach for the American dream by creating a
new enterprise. It simply involves applying for the right documentation and
then following a series of practical steps, outlined below by Leadership.
Getting
Started
Whether you are an immigrant or not, the first
basic step in starting a business in the United States is to draft a business
plan. This is essentially a roadmap of where you are and where you want to be.
Growthink explains the sections found in a business plan. These include executive
summary, description or company analysis, market research and strategies,
management and personnel, and financials.
●
Executive summary. An “elevator pitch” that
should be no more than a couple of pages long. This should include your
company’s background as well as an overview of its products, services, and
highlights.
●
Business description. This is a more in-depth
explanation of your endeavor. It should outline any special processes as well
as intellectual property and, if applicable, your legal structure.
●
Market research. Once you’ve completed a
marketing analysis, this is where you will outline your strategies. You should
notate forecasts, milestones, as well as public relations. Data analysis as
well as customer testimonials are included in this section.
●
Management and personnel. Each key executive
and senior-level manager should provide a biography for this section. This will
illustrate their expertise in the industry and help reduce the perception of
risk by showing their experience.
●
Financials. Numbers, including your balance
sheet and cash flow, make up the financial documents section of your business
plan. This should look forward to the future and not necessarily create a
narrative of your current accounting status.
Once your business plan is in place, it’s time
to get to work implementing an organized structure. One place to enact
strategies, policies, and procedures is through your accounting software. A
system that keeps you organized will help you keep your reporting on track
while maintaining accurate tax records.
Funding is the next consideration, and you will
need to know where, exactly, your capital will come from. Your options are to
utilize your own savings or to take out a loan. Whether you choose a personal
or business loan, you must first verify your status. LawFirms notes that this
will either be a US citizen, permanent/conditional resident, non-immigrant,
or undocumented. You will typically need to be a naturalized citizen or
permanent resident to qualify for any type of financial assistance or loan
product.
Once you have your funding figured out, decide
where to locate your business. Fortunately, many new companies are opening up
remotely. This means that you can work from home, and, most likely, your
employees will as well. Now is also a good time to establish your business
structure, which may be an LLC, sole proprietorship, or partnership. There are
also many different types of corporations, and each business structure plays a
part in the amount of taxes your business owes and the personal liability
levied against you.
You will also have to choose a business name. While your company can be named
anything you want, make sure to avoid a few common mistakes. These include
choosing a name that’s too general or that could potentially restrict the
future growth of your business. As an immigrant, if you want to use your family
name for your business, get a few opinions beforehand. A business name should
not be difficult to understand in both written and verbal forms. Finally, do
not forget to confirm domain availability. Check a domain
registrar to see that you can get some logical iteration of your business name
as a website.
Something else you’ll need to do is set up a
home office where you can work. Make it as comfortable as possible, with
natural light and ergonomic furniture, to help you concentrate. If your home
requires some renovations to provide you with the space you need – like adding
windows or expanding a room – the good news is that many such renovations have
the added bonus of improving your home’s appraisal value, should
you decide to sell.
Other
Tips
A few other ideas to keep in the back of your
head as you create your business are to:
●
Save a bundle on advertising by
using a free online logo maker to create an
eye-catching design. It’s a simple and effective way to get started building
your brand.
●
Research business insurance. Even if you form an LLC,
insurance can protect you against non-legal financial losses, such as natural
disasters.
●
Apply for state and federal tax ID
numbers.
●
Maintain a separate bank account
for your business and personal expenses. Remember, if you are an LLC or other
separate entity, do not commingle your funds or your personal cash may be
considered business property.
●
Apply for any required licenses or
permits. If you’re opening a Mexican restaurant and plan to sell alcohol, for
example, you’ll need an alcohol license. Contact your local and state
authorities for more information based on your industry.
●
Maintain excellent accounting
records. Your payroll reporting system/software will help you keep up with your
records, but you also need to maintain logs detailing your expenses and
incoming funds.
●
If you plan to send some of your
profits home to your family, don’t rely on your business bank account or
personal bank account to do this. It’s costly and complicated. Instead, use a
wire service to safely send money home to family.
Opening a business in the United States as an
immigrant presents a few hurdles that Americans don’t have. You’ll first have
to prove your immigration status and figure out how to qualify for a loan.
Beyond that, the process is pretty straightforward. Regardless of the
challenges, you might endure, becoming an entrepreneur is the American dream
and one that can help you live your best life whether you choose to stay here
for the long term or return back to your home country after you’ve made your
mark.
Leadership offers the best contemporary
perspectives on the art of influencing human behavior toward organizational
goals. If you have any questions, please email sales@pokerleadership.com.
Image via Pexels
Posts
