Yet many Australians still assume they need US residency or a visa just to register a company there. That's simply not true, and clearing up this misconception is the first step toward getting started properly.
This guide walks through the structures, costs, visa options, and registration steps Australian founders actually need, without the guesswork.
TL;DR
- No visa or residency required to own a US business; only needed if you live or work there
- LLCs and C-Corps are the two viable structures for non-resident foreign owners; S-Corps are off the table
- Core steps: pick a state, appoint a registered agent, get an EIN/ITIN, open a US bank account, register for taxes
- E-3 specialty and E-2 treaty investor visas give Australians privileged access
- Ongoing compliance (annual reports, franchise tax, IRS filings) matters just as much as the initial paperwork
Can a Foreigner Open a Business in the USA?
Yes. Non-citizens and non-residents can legally form and own a US business entity without citizenship, green-card residency, or a US visa. Delaware’s corporate statute, for example, opens formation to "any person" regardless of residence or domicile.
Ownership and day-to-day management are separate. You can own a US LLC or corporation and run it from Sydney, Melbourne, or anywhere else. No relocation is required. Working physically inside the US is a different matter and may need separate immigration advice.
Common Structures Available to Australian Founders
- LLC: Pass-through taxation and flexible management; foreign owners cannot elect S-Corp status
- C-Corporation: Preferred by investors and allows unlimited stock issuance, but profits are taxed at the corporate level before dividends
- Branch / foreign qualification: For existing Australian companies extending into the US rather than forming a new entity
What to Know Before You Start a US Business From Australia
Most Australian founders underestimate the compliance and banking friction, not the registration paperwork itself. The filing is often the easy part.
Key friction points:
- Time involvement: Choosing the state and entity structure usually takes longer than the filing itself
- EIN/ITIN timelines: Bank accounts, hiring, and major contracts stay blocked until these IDs are in hand
- Banking friction: Many US banks still want an in-person visit or documents that are hard to produce remotely
- Ownership vs. relocation: Owning the entity needs no visa; moving to the US to run it does
Processing timelines matter here. Plan around the IRS windows below:
- ITIN (Form W-7): Allow 7 weeks, or 9 to 11 weeks in peak season (January 15–April 30) or when filing from overseas
- EIN by fax: Roughly 9 business days on current IRS estimates
- EIN by paper: Up to 30 days
Why Start a US Business From Australia? (When It Makes Sense)
A US entity is not automatic upside. It pays off when your customers, capital, or growth path actually sit in the American market.
Reasons it works for Australian founders:
- Access to the world’s largest consumer market and deepest capital markets (US GDP roughly $30.77 trillion vs Australia’s about $1.8 trillion)
- The Australia–US Free Trade Agreement and the E-3 visa give Australians trade and mobility options most nationalities lack
- A US entity builds credibility with American clients, investors, and payment processors that offshore invoicing cannot match
- Long-term optionality to relocate or hire on the ground later via E-2 or E-3 visas
Early Decisions That Matter: Structure, State, and Visas
Most early friction comes from underestimating state-level variation and visa/ownership confusion, not lack of effort. Three formation choices shape what comes next:
- LLC vs. C-Corp: Liability protection, tax treatment, and investor readiness differ significantly. LLCs suit smaller operations; C-Corps suit venture-backed growth.
- State of formation: Delaware and Wyoming attract non-residents with predictable frameworks. If you trade in Texas, for example, you must register there too.
- Registered agent: Non-residents cannot accept US legal correspondence themselves. Every state requires an agent with a physical address in the formation state. Australian founders also need a lawful path to work in and run the company on the ground:
- E-3 specialty occupation: USCIS limits this category to Australian nationals in roles that require a bachelor's degree or equivalent. No other nationality has this route.
- E-2 treaty investor: Fits founders investing substantial capital who want to manage the business personally. Australia has held E-2 treaty status since December 27, 1991.
How to Start a Business in the USA From Australia – Step by Step
Break the process into practical stages. Skipping the registered agent or EIN application until late is the single most common mistake founders make.
Step 1 – Choose Your Business Structure
Decide between LLC and C-Corp based on your liability appetite, investor plans, and tax strategy. Confirm upfront: S-Corp status isn't available to non-resident foreigners under IRS rules.
Common miss: Defaulting to a C-Corp because it's commonly recommended, without checking whether an LLC's pass-through taxation better suits a smaller, Australian-run operation.
Step 2 – Select a State for Formation
Weigh the non-resident-friendly frameworks in Delaware, Wyoming, or Nevada against registering where you'll actually conduct business.
| Consideration | Delaware | Wyoming |
|---|---|---|
| LLC annual tax | $400 flat, due June 1 | $60 minimum license tax |
| Corporation franchise tax | $175–$400 minimum (up to $200,000 max) | No franchise tax |
| Filing fee | Moderate | Low ($100) |
Common miss: Incorporating in Delaware without foreign-qualifying in the state where operations actually happen — this triggers penalties in both states.
Step 3 – Appoint a Registered Agent
A registered agent with a physical US address is mandatory for receiving legal and government correspondence. It's not optional, and it's not something a virtual mailbox alone satisfies.
Common miss: Assuming a mail-forwarding service ticks this box. It doesn't — most states require the agent to accept service of process in person during business hours.
Firms offering cross-border formation support, including VJM Global's US entity setup services, can arrange a compliant registered agent alongside the broader filing package for Australian founders working remotely.
Step 4 – Obtain an EIN and ITIN
The EIN is required for banking, hiring, and tax filing. The ITIN substitutes for a Social Security Number when you, as a non-resident owner, need one for tax purposes.
- EIN application (Form SS-4): Non-residents without a US address can't use the online tool and must apply by fax or phone instead
- ITIN application (Form W-7): Requires original or certified identity documents and takes 7–11 weeks depending on the season
Common miss: Putting off the EIN until banking or hiring is already underway. Non-residents can get an EIN without an ITIN; the ITIN is a separate process for personal tax filing when you lack an SSN.
Step 5 – Open a US Business Bank Account
Typical documentation required includes:
- Incorporation documents (Articles of Organization or Incorporation)
- EIN confirmation letter
- ITIN or passport
- Ownership details for anyone holding 10% or more
Common miss: Assuming any US bank will onboard a non-resident fully online. Major banks like Chase require an in-person branch visit for multi-member LLCs, though some specialist providers support remote opening for single-owner structures.
Step 6 – Register for State and Federal Tax Compliance
Cover corporate income tax registration, payroll tax if hiring, and — critically — sales tax nexus.
Since the Supreme Court's South Dakota v. Wayfair decision, physical presence is no longer required to trigger sales tax obligations. Economic activity alone — crossing a state's sales threshold — can create a filing requirement, even with zero physical presence there.
Common miss: Ignoring sales tax obligations in states where you have no office but cross their economic nexus threshold.
Step 7 – Decide on Visa Strategy If You Plan to Relocate
No visa is needed to own the business remotely. A visa is only required if you want to personally live and work in the US.
Main pathways for Australians:
- E-3 — Australian-exclusive visa tied to a specialty occupation job offer
- L-1 — Intracompany transfer if you already run an Australian company and want to open a US branch
- Other employer-sponsored options (such as H-1B) — when a US employer or your US entity can lawfully petition for you
Note: E-2 treaty investor status is not available to Australian citizens — Australia is not an E-2 treaty country.
Common miss: Assuming ownership automatically grants entry rights. It doesn't — owning shares and holding work authorisation are legally separate matters.
Step 8 – Maintain Ongoing Compliance
Registration is not a one-time task. It's the start of an ongoing cross-border compliance function covering:
- Annual report filings with the Secretary of State
- Franchise tax renewals
- IRS filings — Form 1120 for C-Corps, or 1065 for partnership-taxed LLCs (S-Corp election generally isn't available to non-resident owners)
- FinCEN beneficial ownership reporting
Common miss: Treating the initial filing as the finish line, then missing an annual report deadline six months later and losing good standing.
Conclusion
Australians can legally own and operate a US business without relocating or holding a visa, provided structure, state, and registered agent decisions are made correctly upfront. Speed of registration matters far less than clarity on EIN/ITIN, banking, and tax nexus.
A cross-border partner who knows both Australian and US rules can handle formation and the tax work that follows. VJM Global manages formation filings, EIN applications, registered agent appointments, and annual compliance for US entities owned by Australian founders—so you stay covered after the paperwork is filed.
Frequently Asked Questions
Can a foreigner open a business in the USA?
Yes. Neither citizenship nor residency is required to own a US business. Ownership is legally separate from personally working inside the business in the US.
How do foreigners come to America and start businesses?
Ownership doesn't require entry into the US at all. Relocating to personally manage the business typically requires a visa, such as E-2 or E-3 for Australians specifically.
How much money is needed to start a business in the USA?
State filing fees and registered agent costs typically run into the low hundreds of US dollars. Investor visa routes like E-2 require a "substantial" investment, though no fixed dollar minimum is legally defined.
Do I need to visit the US in person to register my company?
Most registration steps can be completed remotely. Banking is the exception — it often requires in-person verification or a specialist provider that supports remote onboarding.
What's the difference between an LLC and a C-Corp for a non-resident owner?
LLCs offer pass-through taxation and simpler compliance; C-Corps face double taxation but are far more attractive to outside investors and allow unlimited stock issuance.
Which US state is best for a non-resident Australian founder to register in?
It depends on where you'll actually conduct business. Delaware and Wyoming are popular defaults for holding entities with no physical US operations.
