united-states, international, entrepreneurism-abroadI currently live in Brazil, and am developing a product that will (probably) not work well here, since our “entrepreneurial vein” is currently at birth. This product matches San Francisco and Silicon Valley area very much, so I’m planning to focus my launch there (by personally going and participating on local startup presentations and such).
Can I legally do this without opening a formal company in the US? I’m thinking about starting informal gathering resources through Paypal from my paying customers.
"Can I legally do this without opening a formal company in the US? I'm thinking about starting informal gathering resources through Paypal from my paying customers."
The short answer: no, you cannot. Because of the fact that you are operating a business that is doing business in a US based state, you will be expected to be formalized in every way that any other business operating there would need to follow.
One option requires an E2 nonimmigrant visa, or an immigrant EB-5 visa, requiring investments of $200k USD and $500k USD, respectively. These are obviously steep numbers.
There are many other requirements, I'd advise going through the SBA website. Here is their list of how to start a business as a foreigner:
Steps to Starting Up a Foreign Business in the U.S.:
Foreign business entities are incorporated at the state level in the U.S. The process will vary from state-to-state, but generally involves two steps: applying to register in that particular state, and establishing a registered agent with a valid address in that state (no PO Box numbers). A registered agent can be either the business owner or another person who is authorized to receive legal papers on behalf of the business, such as an attorney or secretary.
The rest of the steps to starting up are similar to those that an American citizen would take. The breakdown of 10 Steps to Starting a Business includes information on naming your business, requirement licenses and permits, and tax matters.
Establishing an online retail presence in the U.S. is a popular choice for many foreign business owners. You can read more about general resources for online businesses, including privacy and advertising regulations here, along with specific information on international sales.
As always, I advise to stay within the legal bounds, as it'll end up saving you money in the long run, and feels good on the inside ;)
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