🇮🇳 India
→
🇺🇸 United States

How to Start a US Business
from India

The complete 2026 playbook for Indian founders — entity formation without SSN, banking, the US-India DTAA tax treaty, visa pathways, and the best states for Indian entrepreneurs.

Get Your Free State Recommendation → Buy the India → US Guide ($99)
75K+Indian founders launched US entities
Delaware & WyomingTop states for Indian businesses
DTAATax treaty prevents double taxation
7–14 daysAverage LLC formation timeline
Visa Pathways

How Indian Founders Enter the US

India has no E-2 investor treaty with the US, so Indian founders rely on work visas, investor visas, and extraordinary ability routes. Here are the most common paths.

💼

H-1B Visa

Annual Lottery

The most well-known route for Indian tech workers. Allows self-employment only through your own company sponsoring you — complex but powerful.

  • Requires sponsoring employer (your own US LLC can sponsor you)
  • Annual cap: 85,000 visas with lottery system
  • Specialty occupation — usually tech, finance, engineering
  • Path to Green Card via EB-2/EB-3
🔄

L-1 Intracompany Transfer

No Lottery

Best if you have an existing business in India. Transfer yourself as a manager or specialist to your new US entity.

  • Must have worked for Indian company 1 year in last 3
  • L-1A (managers) → EB-1C Green Card pathway
  • L-1B (specialized knowledge) — harder to convert
  • New office L-1 valid 1 year, renewable
⭐

O-1 Extraordinary Ability

No Lottery

For founders with demonstrable achievements — media coverage, awards, significant business impact, publications.

  • No employer cap or lottery — merit-based
  • Strong for repeat founders, acclaimed experts
  • Valid 3 years + renewals
  • Requires agent or sponsoring organization
💰

EB-5 Investor Visa

Green Card Route

Direct Green Card path for investors. Minimum $800K in a Targeted Employment Area (TEA) or $1.05M elsewhere.

  • Must create 10 full-time US jobs
  • TEA investment: $800,000 minimum
  • Standard investment: $1,050,000 minimum
  • Long processing — 5–10 years for Indian nationals
🎓

OPT / STEM OPT Extension

Students Only

F-1 students can work on OPT for 12 months (STEM: 36 months). Great window to build a US business while in status.

  • STEM OPT: 36 months total for eligible degrees
  • Can start business on OPT (self-employment rules apply)
  • Bridge to H-1B while company is established
  • Must maintain bona fide employment relationship
✈️

B-1 Business Visitor

Easy Entry

No work authorization but allows you to negotiate contracts, attend meetings, and set up your US company remotely and in-person.

  • Can form LLC and open bank accounts on B-1
  • Cannot receive US-source salary
  • Valid for business trips up to 6 months
  • Good for initial market research and setup
Tax Treaty

US–India DTAA: Avoiding Double Taxation

The US and India have had a Double Taxation Avoidance Agreement (DTAA) since 1990. It directly impacts how your income is taxed across both countries.

🤝 What the DTAA Covers

The DTAA prevents you from paying full taxes in both India and the US on the same income. Key provisions include reduced withholding tax rates and tie-breaker rules for residency.

  • ✓ Dividends: 15% withholding (vs. 30% default)
  • ✓ Interest: 15% withholding rate
  • ✓ Royalties: 15% withholding rate
  • ✓ Savings clause — US still taxes US residents on worldwide income
  • ✓ Tie-breaker rules determine residency status

📋 Practical Implications

Your tax situation depends heavily on where you are tax-resident. Here's what Indian founders typically face:

  • ✓ India-resident founder: US-source dividends taxed at reduced DTAA rate
  • ✓ US-resident founder: Taxed on worldwide income by both countries; DTAA credit offsets
  • ✓ Delaware C-Corp: 21% federal corporate tax, then dividend tax to you
  • ✓ Wyoming LLC (pass-through): US income passed to Indian return, DTAA credit claimed
  • ✓ FBAR required if Indian bank accounts exceed $10K threshold

🏛️ Entity Structure for Tax Efficiency

Most Indian founders choose one of two structures depending on growth goals:

  • ✓ Delaware C-Corp: Best if raising VC funding. Subject to US corporate tax (21%) + state tax
  • ✓ Wyoming LLC: Best for service businesses. Pass-through taxation, no state income tax
  • ✓ EIN (federal tax ID) obtainable without SSN — needed for banking
  • ✓ ITIN application if you need individual US tax ID

⚠️ Key Watch-Outs

Common tax mistakes Indian founders make when entering the US market:

  • ✓ Transfer pricing rules apply if Indian parent entity exists
  • ✓ Controlled Foreign Corporation (CFC) rules if you're a US resident with Indian company
  • ✓ State nexus rules — doing business in multiple states triggers additional filing obligations
  • ✓ Hire a US CPA who understands cross-border India-US taxation
Banking

US Business Banking for Indian Founders

Banking is the #1 challenge for non-US founders. Indian founders have solid options — especially with fintech banks that don't require SSN or US address.

Bank Requires SSN? Requires US Address? Success Rate (Indian Founders) Notes
Mercury No (EIN only) Registered agent OK Very High Best overall choice for Indian founders. Fast, online, no monthly fees
Relay No (EIN only) Registered agent OK High Great for multiple sub-accounts, Stripe/PayPal integration
Wise Business No No High Multi-currency, low FX fees. Not a full US bank but useful for international payments
Chase Business Yes (or ITIN) Yes Medium Best if you have US presence. In-branch application required
Bank of America Yes Yes Low Difficult for non-resident founders. Works if you have US address and ITIN

💡 Pro tip for Indian founders: Start with Mercury or Relay (EIN only). Once you have a US presence, upgrade to a traditional bank. You'll need your EIN letter from the IRS — get this first before applying.

Recommended States

Best US States for Indian Founders

Your choice of state affects taxes, privacy, annual fees, and VC-friendliness. Here's what we recommend based on 75,000+ Indian founder cases.

⭐ Top Pick for Tech/SaaS 🏛️

Delaware

The gold standard for VC-backed startups. Every major US VC firm prefers Delaware C-Corps. If you're raising funding, incorporate here.

  • Preferred by US VCs and accelerators
  • Flexible corporate law, established case law
  • No state income tax on out-of-state sales
  • Annual franchise tax: $300–$400 for most startups
  • Fast formation: 1–2 business days
⭐ Top Pick for Services/Consulting 🏔️

Wyoming

The most founder-friendly state for LLCs. No state income tax, strong privacy protections, low annual fees.

  • No state income tax — ever
  • Annual report fee: just $60
  • Strong privacy — no public member lists
  • No operating agreement required (beneficial)
  • Ideal for remote service businesses
🌟

Texas

No state income tax, massive tech ecosystem, and a large Indian-American business community. Good if you plan to live or hire here.

  • No state income tax for individuals
  • Strong Indian entrepreneur networks (Dallas, Houston)
  • Franchise tax applies to some entities
  • Growing tech hub: Austin, Dallas

Not sure which state fits your specific situation?

Use Our Free AI State Selector →
Step-by-Step Roadmap

Your India → US Launch Plan

Follow these steps in order. Most Indian founders complete this in 4–8 weeks, often without setting foot in the US.

1

Choose Your Entity Type & State

Use our AI State Selector to find the best state. Decision: Delaware C-Corp (raising VC) vs. Wyoming LLC (bootstrapped, services, consulting). This decision shapes everything downstream.

⏱ 1–2 days
2

File Your Articles of Incorporation / Organization

File directly with the state or use a formation service. You can do this entirely online from India — no US travel required. Get your Certificate of Formation.

⏱ 1–5 business days (state dependent)
3

Get a Registered Agent

Every US company needs a registered agent with a physical US address for legal notices. Cost: $50–$300/year. Many formation services include 1 year free.

⏱ Same day
4

Apply for Your EIN (Federal Tax ID)

Apply via IRS Form SS-4. As a non-US founder, you'll apply by fax or mail (not online). Processing: 1–8 weeks by mail, faster by fax. This is your business's Social Security Number.

⏱ 1–8 weeks
5

Open US Business Bank Account

With your EIN and formation documents, open Mercury or Relay. Apply online in minutes. Approval typically within 1–5 business days. No US travel needed.

⏱ 1–5 business days
6

Set Up Payments & Accept US Revenue

Connect Stripe (available to Indian-owned US entities), set up invoicing, and start accepting USD payments. Wire to your Indian account or keep in USD for US operations.

⏱ 1–2 days
7

Plan Your Visa Strategy

Consult an immigration attorney about L-1 (if existing Indian company), H-1B lottery (if you have a sponsor), or O-1 (if you have exceptional credentials). Plan 12–24 months ahead.

⏱ Ongoing
FAQ

Common Questions from Indian Founders

Yes, 100%. Both LLC and C-Corp formation can be done entirely online from India. You need a registered agent's address (they provide this), your passport, and a credit card. The entire process — from filing to bank account — can be done remotely. Most Indian founders never visit the US for formation.
No. You don't need an SSN to form an LLC or corporation. You'll need an EIN (Employer Identification Number) from the IRS, which you can apply for as a non-US person using Form SS-4. For banking, Mercury and Relay accept EIN alone — no SSN required.
The US-India DTAA prevents full double taxation. If you're India-resident, US-sourced dividends are taxed at a reduced 15% rate (vs. 30%). If you're US-resident, you claim Indian taxes as a foreign tax credit on your US return. You should still work with a cross-border CPA as the rules are complex.
No. As of 2026, India does not have an E-2 treaty with the United States. Indian nationals cannot apply for the E-2 visa. The main alternative investor path is EB-5 (Green Card via $800K+ investment). For non-investor routes, L-1, O-1, and H-1B are the primary options.
Delaware C-Corp if you plan to raise VC funding — all major US accelerators (YC, Techstars) and VCs require it. Wyoming LLC if you're bootstrapped, running a services or consulting business, or want minimal overhead. Wyoming has no state income tax and charges only $60/year for annual reports. Use our AI State Selector for a personalized recommendation.
Yes. Many Indian founders operate both. However, you need to carefully structure ownership to avoid controlled foreign corporation (CFC) issues and properly handle intercompany transactions for transfer pricing. A cross-border CPA can help structure this correctly from day one to avoid future tax headaches.

Ready to Launch Your
US Business from India?

Get AI-powered guidance on entity type, state selection, banking, and compliance — built for Indian founders entering the US market.

Get Free State Recommendation → Buy the India → US Guide ($99)