The U.S. is a popular destination for business formation due to its favorable business laws and vast market potential. For non-U.S. residents, one of the most common questions is whether they can form a Limited Liability Company (LLC) while in the U.S. on a visitor visa. The short answer is yes, you can legally form an LLC in the U.S. on a visitor visa. However, there are important legal distinctions between forming a business and actively running or working for that business while on a visitor visa.
In this blog, we’ll discuss the process of forming an LLC as a visitor in the U.S., what activities are allowed under a visitor visa, and the restrictions you should be aware of when setting up your business.
What Is an LLC?
A Limited Liability Company (LLC) is a flexible business structure in the U.S. that combines the benefits of a corporation and a partnership. It provides liability protection to its owners (called members), meaning that their personal assets are shielded from business debts and liabilities. LLCs also offer tax flexibility, allowing profits to be taxed at the individual level (pass-through taxation), and they have fewer regulatory requirements than corporations.
LLCs are popular with non-residents because they do not have strict residency or citizenship requirements, making them an ideal business structure for foreign entrepreneurs looking to enter the U.S. market.
Understanding Visitor Visas (B-1/B-2)
The U.S. visitor visa typically falls under the B-1 (Business) or B-2 (Tourism) category:
- B-1 Visa (Business Visitors):
This visa is for individuals who wish to visit the U.S. temporarily for business purposes such as attending conferences, negotiating contracts, or conducting meetings. It does not allow for employment or active management of a U.S. business.
- B-2 Visa (Tourism Visitors):
This visa is for tourists visiting the U.S. for leisure, vacations, or to visit family and friends. Like the B-1 visa, it prohibits employment or active management of a business.
Can You Form an LLC on a Visitor Visa?
Yes, you can form an LLC while in the U.S. on a visitor visa. In fact, there is no requirement to be physically present in the U.S. to form an LLC. You can form an LLC remotely from your home country or while visiting the U.S. on a B-1 or B-2 visa. The key point is that forming an LLC does not equate to working for the LLC.
The Distinction:
- Forming the LLC:
This is a legal and administrative process that involves filing paperwork, paying formation fees, and appointing a registered agent. None of these activities are considered “work” under U.S. immigration law, and therefore, you can perform these tasks on a visitor visa.
- Running or Managing the LLC:
Actively participating in the day-to-day operations of your business, making business decisions, or working in any capacity for your LLC while on a visitor visa would be considered a violation of your visa terms.
What You Can and Cannot Do on a Visitor Visa
It’s important to understand the limitations of your visitor visa to ensure that you comply with U.S. immigration laws. While you can form an LLC, there are certain activities you cannot do while in the U.S. on a B-1 or B-2 visa.
What You Can Do:
- Form an LLC:
You can handle the administrative tasks involved in LLC formation, such as filing the Articles of Organization and hiring a registered agent.
- Hire U.S. Based Professionals:
You can hire attorneys, accountants, or other professionals to help you with LLC formation, tax compliance, or legal matters.
- Attend Business Meetings:
If you’re in the U.S. on a B-1 visa, you can attend meetings, conferences, or negotiations related to your LLC.
- Explore Business Opportunities:
You can research markets, scout for potential office locations, and meet with potential clients or suppliers.
What You Cannot Do:
- Actively Manage the LLC:
You are not permitted to actively manage the day-to-day operations of your LLC while on a visitor visa. This includes making business decisions, hiring employees, or overseeing business transactions.
- Earn Income in the U.S.:
You cannot receive compensation or income from your LLC while in the U.S. on a visitor visa. To work for your LLC and earn income, you would need an appropriate work visa, such as an E-2 Investor Visa or L-1 Intra-company Transfer Visa.
- Stay in the U.S. Long-Term:
A visitor visa is temporary and does not grant you the right to reside in the U.S. long-term or for an extended period to manage your business.
Conclusion
In summary, it is entirely possible to form an LLC in the U.S. while on a visitor visa, but it’s important to understand the legal limitations. While you can establish the LLC, you cannot actively manage or work for your LLC while in the U.S. on a B-1 or B-2 visa.
Forming an LLC can be a great first step in establishing a business presence in the U.S., and with the right planning and professional guidance, you can ensure that your business is set up for success.
If you are considering forming an LLC as a non-resident, be sure to consult with a legal or immigration professional to understand your options and ensure that you comply with both business and immigration laws.
