Starting a business in the US

Last updated: March 5, 2026

Starting a Business in the US: A Practical Guide for Dutch Emigrants

Starting a business in the United States can be a rewarding venture, but it requires careful planning, understanding local regulations, and following specific legal procedures. This guide provides clear, practical steps for Dutch citizens emigrating to the US who want to start their own business.

1. Understand Your Visa Options

Before starting a business, ensure you have the appropriate immigration status. Common visa options for entrepreneurs include:

E-2 Investor Visa: For Dutch nationals who invest a substantial amount (usually $100,000 or more) in a US business. The Netherlands has a treaty with the US, allowing eligibility.
L-1 Visa: For individuals transferring from a Dutch company to a US branch or subsidiary.
EB-5 Immigrant Investor Program: Requires an investment of $800,000 to $1.05 million and can lead to permanent residence.

Check the US Citizenship and Immigration Services (USCIS) website for detailed visa requirements: https://www.uscis.gov.

2. Choose Your Business Structure

The most common business structures in the US are:

Sole Proprietorship: Simple to set up but offers no personal liability protection.
Limited Liability Company (LLC): Popular for small to medium businesses, providing liability protection and pass-through taxation.
Corporation (C-Corp or S-Corp): Suitable for businesses seeking investors; more complex and expensive to maintain.

For most emigrants, an LLC is recommended due to flexibility and protection. Formation costs vary by state but typically range from $50 to $500.

3. Register Your Business

Steps to register:

Choose a Business Name
Ensure the name is unique in your state. Use the Secretary of State’s business name database for your state (e.g., California’s database: https://businesssearch.sos.ca.gov).
File Formation Documents
Submit Articles of Organization (for LLC) or Articles of Incorporation (for Corporation) to the Secretary of State’s office. Filing fees vary:
- Delaware LLC: $90
- California LLC: $70 + $800 annual franchise tax
- New York LLC: $200
Obtain an Employer Identification Number (EIN)
Required for tax purposes and hiring employees. Apply for free online via the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
Register for State and Local Taxes
Depending on your business and location, you may need to register for sales tax, excise tax, or payroll tax.

4. Obtain Required Licenses and Permits

Business licenses depend on industry and location. Examples include:

General business license from your city or county
Professional licenses (e.g., for medical, legal, or construction businesses)
Health and safety permits

Check the Small Business Administration (SBA) website for federal, state, and local licensing requirements: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits.

5. Open a US Business Bank Account

A US bank account is essential for handling business finances. Requirements typically include:

Business formation documents
EIN
Personal identification (passport, visa)
Proof of US address (lease agreement, utility bill)

Popular banks for business accounts include Chase, Bank of America, and Wells Fargo. Expect initial deposits of $100 to $1,000 depending on the bank.

6. Understand Tax Obligations

Federal Taxes: Businesses pay income tax depending on structure. LLCs often report profits on personal tax returns; corporations file separate returns.
State Taxes: Vary widely; some states have no income tax (e.g., Texas), others have high rates (e.g., California).
Sales Tax: Collected on goods/services in most states. Rates range from 0% to 10%+.
Payroll Taxes: If you hire employees, you must withhold and remit Social Security, Medicare, and unemployment taxes.

Use the IRS Small Business and Self-Employed Tax Center as a resource: https://www.irs.gov/businesses/small-businesses-self-employed.

7. Hire Employees (If Applicable)

If you plan to hire employees:

Obtain a Federal EIN.
Register with your state’s labor department for unemployment insurance.
Comply with US labor laws, including minimum wage, workplace safety, and anti-discrimination rules.
Use Form I-9 to verify employee eligibility to work in the US.

The US Department of Labor website provides detailed employer guidance: https://www.dol.gov/general/topic/hiring.

8. Maintain Compliance and Record-Keeping

File annual reports with your state (fees vary).
Renew licenses and permits as required.
Keep detailed financial records for tax and legal purposes.
Pay estimated quarterly taxes if required.

Common Mistakes

Ignoring Visa Requirements: Starting a business without proper work or investor visas can jeopardize your immigration status.
Choosing the Wrong Business Structure: This affects taxes, liability, and administrative burdens.
Not Registering Properly: Failing to register your business or obtain necessary licenses can lead to fines or closure.
Neglecting Tax Obligations: Underestimating tax responsibilities can cause penalties or audits.
Overlooking State Differences: Each state has unique fees, taxes, and regulations.
Mixing Personal and Business Finances: This risks personal liability and complicates accounting.

Useful Official Resources

USCIS: https://www.uscis.gov
IRS: https://www.irs.gov
SBA: https://www.sba.gov
State Secretary of State Offices (search your state)

Starting a business in the US as a Dutch emigrant involves navigating immigration, legal, and tax landscapes carefully. Following these steps and using official resources will help ensure a smooth launch and ongoing compliance.

Starting a business in the US