Sole Proprietorship in the United States

[Arsenal88]

Hi guys,

It is a little bit off-topic, but I cannot categorize it. One of my friends asked me a question, and I could not answer it, I swear. 😀 Many people say that they want to go working to the United States. But most of them, they can work only illegally (e.g., without visa, green card etc.). But what if someone is want to be a sole proprietor in the U.S.? Can an immigrant - without any work permission - establish a sole proprietorship? Of course, the sole proprietor would work physically in the U.S. (e.g. cleaning). I have been doing a lot of thinking on that. Would it be possible?

Thanks for answering my 'interesting' question!

 

[Sols]

First of all, sole proprietorships are very rare in the US. Practically every small business‌ is an LLC.

Forming an LLC requires pretty much no KYC.

If you have a‍ non-work immigration visa (student visa or similar), you can apply for a SSN. With a⁠ SSN, you can get an EIN. With an EIN, you can open a bank account⁤ for the company once it's formed. I'm not sure if the bank would ask about⁣ your immigration status. Doubt it.

Alternatively, you can use a nominee to provide the EIN⁢ but opening a bank account will be challenging without SSN.

AFAIK, the IRS doesn't care︀ about your immigration status either so you can pay taxes.

 

[Arsenal88]

Hi,

First of all, I would like to thank you for your reply. I very‌ appreciate it.

I found this topic. It says that you can register the business as‍ a sole proprietor with only ITIN and Fictitious Business Name. You can read that after⁠ the 5th point. I believed my friend was just kidding, but it seems he has⁤ got right. 1-0 for him! 😀 Can it be a 'legal loophole" toward the U.S.? What⁣ do you think about it?

How is it possible for an illegal immigrant to set⁢ up a business in the US? - Quora

 

[Sols]

There is nothing legal about it, nor is it a loophole. You're still violating US‌ immigration laws, which can have serious, life-long consequences.

Business laws and immigration laws are separate‍ things.

 

[Arsenal88]

Hi,

Of course, I understand what you say. I have not got any intention this‌ way. We were just talking about that. That is all. 😀