Dorotea Tuzon

Starting a business in America can be a huge and daunting task for immigrants. The language barrier is one of the biggest challenges that may hinder a migrant to start his or her American dream on US soil. 

But, did you know that immigrant-run small businesses make up 18 percent of business owners with employees and almost 23 percent of business owners without employees? And, immigrant-run businesses are found in all sectors of the US economy. 

However, having a business can be both fun and rewarding. Before starting a business, let me share with you some information to help you get started with your great American dream. 

DO A MARKET RESEARCH

Just like any business, you have to start market research. Understanding the needs of the customers that you will be serving as well as the local business environments is critical for success- study also the current laws and regulations, taxes, and competition. With this, you will be able to make a good decision in setting up your business venture for success. 

BUILD YOUR NETWORK

Consequently, it is also important to start building connections while you are doing your market research. They will be helpful for you when asking for recommendations and getting your business to be known. 

It is also a place where you find mentors who can help you as you navigate in setting up your business. Attend local meetups and networking events to get to know known individuals and business people in the area. 

CREATE A BUSINESS PLAN

Now that you have a clear picture of what’s going on and understand the needs of the locality, it is best to start developing a business plan. This will include your business objectives and goals, and the action plan on how to achieve them. A business plan is also helpful when thinking about securing funds from investors.

DETERMINE YOUR BUSINESS STRUCTURE

There is two suited business structures-either a corporation or a limited liability company (LLC) for immigrants: 

A corporation wherein has its rights and responsibilities, and it can continue even if you die or declare bankruptcy. On the other hand, corporations must pay tax twice-when one made a profit and dividend earnings. 

Limited Liability Company (LLC) functions similarly to a corporation but has a different tax structure wherein profits can go directly to its business owners, and they are in charge of paying the taxes through their individual income tax. Business owners can determine how to split the profit. 

IDENTIFY AND REGISTER YOUR BUSINESS NAME

You need to choose a specific name for your business or register it as dba (doing business as) in the state where you will open your business. Also, be aware of trademark infringement. 

GETTING A TAX ID

All business entities must get an IRS Individual Taxpayer Identification Number (ITIN), and you need to fill up a W-7 form.

GETTING AN EMPLOYER IDENTIFICATION NUMBER (EIN)

You also need to get an Employer Identification Number and the application for EIN can be obtained from here.

OBTAINING A BUSINESS PERMIT AND LICENSES

Obtaining a business permit is regulated at a federal and state level. For information about how to apply for a business license and permit, check this link.

OPENING A BUSINESS BANK ACCOUNT

When opening a business bank account, you may need to provide your personal and business information and legal documentation. Visit this link to obtain on how to open a business bank account. 

FINAL THOUGHTS

While opening a business in the US can be a challenging experience for many immigrants, it is a good experience to grow and succeed. With determination and hard work, you will be able to achieve your great American dream here in the land of opportunities.