You do not need to be a US citizen, green card holder or resident to own a US company. What changes is the tax and reporting, and the penalties for getting it wrong are high.
A founder in Mumbai, Delhi, Hyderabad or Dubai can form a Virginia, Delaware or Wyoming entity, open a business bank account and hire in the US. The steps below cover the entity choice, the IDs you need, ongoing compliance and moving money.
Step 1: Choose the right entity
| Entity | Who it suits | How it is taxed | Watch-outs for foreign owners |
|---|---|---|---|
| Single-member LLC (disregarded) | Holding company, small consulting or e-commerce business | No US entity tax; owner may file Form 1040-NR if income is effectively connected with a US trade or business | Must file pro forma Form 1120 + Form 5472 every year, even with no income; $25,000 penalty per missed form |
| Multi-member LLC (partnership) | Two or more founders | Form 1065; K-1 to each partner | Partnership must withhold US tax on a foreign partner's share of effectively connected income (Sec. 1446) |
| C corporation | Startups raising investors, businesses reinvesting profit | 21% federal corporate tax; dividends to foreign owners subject to withholding (30%, or 25%/15% under the India treaty) | Form 5472 required if 25%+ foreign-owned; often cleanest for venture-backed companies |
| S corporation | Not available | — | Nonresident aliens cannot be S corporation shareholders |
Step 2: Get your IDs
- EIN: file Form SS-4. Owners without an SSN or ITIN can apply by fax or mail, or by phone from outside the US.
- ITIN: needed only if you personally must file a US return (for example Form 1040-NR) or claim treaty benefits. Apply with Form W-7 through a Certifying Acceptance Agent so your passport stays with you.
Step 3: Register and stay compliant
- Form the entity with the state (in Virginia, the State Corporation Commission) and register for state tax and payroll accounts.
- Keep business and personal funds separate. Capital you send from India or the UAE should be documented as a capital contribution or a loan, with board resolutions or loan agreements.
Step 4: Bank account and money movement
Most US banks want to meet at least one owner in person, or need an EIN letter, formation documents, passport and proof of address. Money sent from India for an overseas business goes through the Overseas Direct Investment (ODI) rules under FEMA, so coordinate with your Indian CA and bank before funding.
Common mistakes we fix
- Missing Form 5472 for a single-member LLC because "there was no income".
- Choosing an LLC and later learning investors require a C corporation.
- Owner salary or draws paid without payroll or withholding.
- No transfer-pricing documentation for payments between the Indian or UAE company and the US company.
How VG CPA PC helps
Entity selection, EIN and ITIN, Form 5472 and 1120 filings, payroll setup, US-India treaty planning and year-round bookkeeping, with advisors who understand both sides of the border.
Talk to an advisorFrequently asked questions
Can a non-US citizen living in India or Dubai own a US company?
Yes. There is no citizenship or residency requirement to own a US LLC or corporation. You will need an EIN, a registered agent and a US address for the company.
Do I need a visa to own a US business?
No visa is needed to own a company. You do need work authorization (such as E-2, L-1 or H-1B) to work in it while in the US.
Should a foreign founder choose an LLC or a C corporation?
A C corporation is usually better if you plan to raise investors or reinvest profits. A single-member LLC can work for simple holding or consulting businesses but requires Form 5472 every year.
Can a nonresident own an S corporation?
No. Nonresident aliens cannot be S corporation shareholders. If one becomes an owner, the S election terminates.
What is Form 5472 and what if I miss it?
It reports transactions between a foreign-owned US company and its owners. The penalty is $25,000 per form, per year.
Can I get an EIN without an SSN or ITIN?
Yes. Foreign owners can file Form SS-4 by fax or mail, or apply by phone from outside the US.
Do I need an ITIN to open a US business?
Not to form the company. You need an ITIN if you personally must file a US tax return or claim treaty benefits.
Updated November 2026. General information based on US federal tax law as of November 2026, not legal, immigration or Indian tax advice for your situation. Indian (FEMA, RBI, income tax) points should be confirmed with your Chartered Accountant in India. Please speak with an advisor before acting.