3 Ways Immigrant Entrepreneurs in the United States Can Improve Their Odds of Business Success
Being a business owner involves hard work and dedication. And being an immigrant in the United States who owns a business or manages investments presents unique challenges of simultaneously finding the right employment visa or employment green card. But the truth is, the United States economy is built on the help of immigrant efforts and there are lots of ways to protect your immigration status and turn your start up into a flourishing, successful company.
Whether through their participation in the workforce or the launching of businesses that create jobs, immigrants have significant economic power. Here’s how to harness that power – even after a financial setback – to boost your odds of operating a successful business, courtesy of Troy & Neils Law.
For help identifying and securing the right employment entrepreneur visa so you can run and grow your start up business, for employment based green cards based on your extraordinary or scientific ability, or for marriage and family green cards, US citizenship, or other immigration issues, turn to the Law Office of Troy & Neils. We create honest, creative solutions for even the most complex immigration issues; backed by more than 20 years of immigration experience and a proven track record for helping our clients. Reach out today to connect with us. 415-399-9490
Outline an Administrative Plan that Will Allow You to Get the Right Immigration Visa
Jumping feet first into your business idea can feel tempting. But before you get too far into daily operations, think about your organizational setup in the larger context of protecting your US immigration status. Doing this up front means that you have a long-term strategy that will meet both your business AND your immigration needs.
Bringing your immigration attorney into the process at start-up formation, means using your company as a tool for short and long term immigration success. There are a lot of great visa options for you and we outline them here:
Some of the questions we consider in identifying the right start-up or employment visa for you:
● Are you eligible for a country specific visa like a TN, E2 or H1B1 visa?
● Do you want to live in the US temporarily or do you want a green card?
● Are you at the cutting edge of your field? Do you have awards, prestigious new media and original contributions of significance in your field? (O-1 visa)
● Do you have business partners?
● What will your ownership % be now? What about in 2 years? 5 years?
● If you are going after VC investors, are they from the US or other countries? Have you secured financing yet?
● How many employees will the company have in 1 year or 2? 5 years?
● Can the company be linked to an operational foreign company? Are you working at that company now? (L-1A visa)
Each visa category impacts HOW you create your business plan, whether you have a Board of Directors, how you determine ownership %, target hiring plan and which corporate formation is right for you.
For example, depending on the visa selection and how you plan to run your business, you will probably need the legal protection of an established business structure. Forming an LLC is often the first step to qualify for an immigration visa and from the business perspective, helps keep you organized. It also ensures that you can take advantage of tax breaks, deal with less paperwork, and enjoy more flexibility as your company grows.
Since each state has its own rules about LLC formation, you will check on the regulations before moving ahead; and can also coordinate with your immigration to meet visa criteria. Filing on your own or with a formation service may be the least expensive way to get your business on the map.
Of course, if you’re planning to buy an existing business to make your own, you can still change up the structure as needed. Finances may be a bit trickier in such scenarios, but can be a great way to qualify for the E-2 treaty trader investor visa, that lets you direct and develop your company in the US.
Create a Financial Buffer
Most entrepreneurs don’t start their businesses with a ton of cash in the bank. But setting aside some funds beforehand is a smart move. In fact, having enough money on hand to cover more than your startup expenses is the ideal scenario. From the immigration perspective, USCIS generally wants to see that your business has sufficient funds to cover start-up costs and salaries until you start generating revenue.
Though many businesses are cheap in terms of startup costs, you never know what kind of help you might need. From hiring staff to outsourcing some essential business setup tasks, it helps to have a bit of a cushion as a backup if you need to go over budget. Luckily, for most immigrant visas, in particular in the startup phase, companies can point to use of independent contractors or contracts with other businesses as a legitimate way to grow the company while keeping costs low.
Fortunately, financial support is available for all kinds of businesses and business owners. Consider avenues like crowdfunding, niche business grants, business loans and even family loans. Liquid resources are the best way to cover your expenses as you launch your business concept. Plus, interest rates are often reasonable for business loans, making them worth the application at the very least. Choosing the right source of funding can be critical for approval of your immigration visa.
Also, keep in mind that some expenses can be written off on your taxes, notes Microsoft. Tracking all your financial moves is smart for many reasons, and preparing for tax season in advance is yet another. Being organized with your start-up expenses and profit and loss statements is also a big positive for USCIS and the US consulates around the world. It is a sign of an organized start-up that knows how to move methodically from start to finish.
Build a Cohesive Network
The number one rule of business should be that connections are invaluable. But many entrepreneurs see their fellow business owners as competition instead. It’s true that you may be angling for the same audience as other companies, but keep in mind that you’re among peers as well; 43 percent of Fortune 500 companies were founded by immigrants, according to the Immigrant Learning Center. Aim to learn from the competition rather than fighting against them, and you’ll both be better off. For some immigration visa categories, having allies in your field can be a real boon. This can result in sharing work for larger clients, contracting for services and referral sources, all great evidence to show that your start-up means business.
Plus, there’s always a way to innovate and expand your target audience, serving a group that your competition may not be aiming for. After all, one subset of immigrant business owners can generate more than a trillion dollars in revenue in a year; that’s one powerful force.
Juggling finances is tough enough when it’s your personal bookkeeping. Running a business and balancing the books presents even more challenges, and not every business owner succeeds on their first try. Adding in immigration issues makes the issues even more complex.
Working up front with engaged and creative immigration attorneys such as Troy & Neils will help you secure the right visa and also allow you to identify the best ways towards company growth, because this focus is needed in order to retain the immigrant visa.
If you are a serial entrepreneur, who is still finding your footing with your start up company, there is still good news for you. There’s no better way to learn from your mistakes than rebuilding your efforts for another launch. And with the right preparation, the odds may be even more in your favor.
Written by Derek Goodman of Inbizability
Photo via Unsplash