Before the Trump administration’s September 21 deadline, when businesses would have to pay $100,000 annually for each H-1B worker visa, Microsoft has urged its employees on H-1B and H-4 visas to return to the US right now. The software juggernaut has also recommended individuals who are currently in the US to remain there for the foreseeable future, according to an internal email that Reuters examined.
“Those with H-1B visas ought to remain in the US for the foreseeable future. Retaining H-4 visa holders in the United States is also advised. In an email to staff members, Microsoft stated, “Strongly advise H-1B and H-4 visa holders to return to the US tomorrow before the deadline,” as reported by Reuters.
Recent $100,000 For H1-B Visas a Big Blow to Tech Giants
In a major setback to the IT industry, which mainly depends on highly qualified workers from China and India, Donald Trump issued an executive order on September 19, imposing an annual cost of $100,000 for H-1B visa applications.
Trump expressed his expectation that the tech sector would be extremely pleased with the adjustments. Howard Lutnick, the secretary of commerce for the United States, stated that if you are going to train someone, you should train a recent graduate from one of the top colleges in the United States.
Train Americans Instead of Foreigners: Trump’s Administration
Educate Americans. Stop hiring foreigners to fill American jobs. The H1-B non-immigrant visa programme is one of the most misused visa systems, according to White House staff secretary Will Scharf.
This is intended to make it possible for highly trained workers to enter the United States of America and work in industries that are not occupied by Americans. This decree will increase the cost of sponsoring H-1B applicants to $100,000 for businesses.
This will guarantee that they are bringing in highly skilled individuals who cannot be replaced by American workers. Last year, India continued to be the top country for H-1B visas. According to government data, 71% of approved recipients were from the nation alone, with China coming in second at 11.7%. Microsoft and Meta both received over 5,000 approvals for H-1B visas in the first half of 2025, while Amazon and its cloud division AWS received over 12,000 approvals.
Indian Government Engaging with the US Over H-1B issue
According to media reports on 20 September, the Indian government is working with the US administration and the IT sector to resolve the H-1B issue. They added that American businesses are particularly affected by the application fee hike because they use these visas extensively for highly qualified workers.
The order announced by US President Donald Trump on 19 September will increase the application price for H1-B visas to a hefty $100,000 per year. Depending on the size of the firm and other expenses, the H-1B visa fee might range from roughly $2,000 to $5,000.According to sources, the Indian government is actively working with the US government, the IT sector, and the Nasscom group to find a solution. According to sources, US firms are actively interacting with the US government on the issue, as they are among the largest users of these visas.
Indian technology services companies will be impacted by the United States’ decision to increase the H-1B visa application fee to $100,000, according to industry group Nasscom.
This is because onshore projects that may need “adjustments” will not be able to continue operating normally. Mohandas Pai, a seasoned industry veteran and former CFO of Infosys, added that the US decision to charge a high yearly cost to applicants for H-1B visas will discourage new business applications and could hasten offshore in the months ahead. According to data from the USCIS website, Amazon had the most H-1B visa approvals (10,044) for FY25 (as of June 30, 2025).
Quick
Shots
•Trump administration imposes $100,000
annual fee per H-1B visa, effective September 21.
•Microsoft advises foreign employees
already in the US to remain there for the foreseeable future.
•Firms like Microsoft, Meta, Amazon,
and Google face steep new costs for foreign talent.
•71% of H-1B approvals in 2024 went to
Indians; China was second with 11.7%.
•Trump team urges companies to train
U.S. graduates instead of hiring foreign workers.
According to a recent post by the US’ renowned media house, US tech businesses are warning visa-holding employees not to leave the country for fear of being denied entry again. Under the new Trump administration’s immigration policies, Indian tech workers—who comprise the largest group of H-1B visa holders in the United States—are already dealing with increasing uncertainty. The H-1B program, which uses a lottery system to approve about 65,000 visas a year, has become crucial to the US IT industry. The majority of these approvals are given to Indians, who are followed by Chinese and Canadian citizens. Amazon, Google, Meta, Microsoft, and Apple are among the major employers.
Fear Mounting Among Indians Working US
Fearing denial of re-entry to the United States, two H-1B employees interviewed by a US media group have cancelled their plans to travel to India. One person voiced worries that a future child would be stateless—that is, neither American nor Indian—due to the administration’s possible modifications to birthright citizenship. According to an H-1B employee who spoke to a US media source via an attorney, everyone who is not a US citizen is presumed to be here illegally. Practical difficulties have also been brought about by the uncertainty. Businesses are paying for accelerated processing of visa extensions to offset delays. With a significant percentage of H-1B applications coming from IT outsourcing companies like Infosys and Cognisant, the tech sector is highly dependent on foreign expertise, particularly Indians.
Green Card Tougher Nut to Crack Now
The process of obtaining permanent residency is already incredibly drawn out for Indian tech workers. Even though they work for renowned companies, many Indians endure decades-long wait times because of per-country Green Card limits. Despite starting a business with hundreds of employees, Aravind Srinivas, CEO of the AI startup Perplexity, which was reportedly valued at $9 billion, posted on social media that he had been waiting three years for a green card. The administration’s larger immigration policy has caused a great deal of fear. Denial rates for skilled visas increased to 15% during Trump’s first term, and immigration lawyers are cautioning their clients that such increases could happen again.
President Trump’s most recent executive order caused a great deal of criticism, mostly among Indian-Americans. Signing of the order took place on January 20, 2025. It stops children born to temporary visa holders—including those with H-1B—from obtaining U.S. citizenship at birth. Accordingly, children will only be eligible for U.S. citizenship if at least one of their parents is a citizen or a holder of a green card.
With hundreds of thousands of Indians residing in the US on temporary work, study, or dependent visas, the ramifications are enormous. Critics point out that Trump’s interpretation of the 14th Amendment is inaccurate because it was enacted to guarantee citizenship to all people born in the United States, regardless of the immigration status of their parents.
Dreaming of tapping into the land of opportunity? The United States, with its booming economy and entrepreneurial spirit, is a magnet for ambitious minds worldwide. But as a non-resident, you might be wondering: Can I really start a business in the U.S.? The answer is a resounding yes! And guess what? It’s not as daunting as it sounds. This guide is your golden ticket to hovering through the American business scene, even if you’re thousands of miles away. No matter who you are: someone planning to relocate or run your venture from abroad, we’ll walk you through every step, from choosing the right business structure to opening a U.S. bank account. So, grab a cup of coffee, and let’s turn your American dream into a thriving reality.
Why the U.S.? The Allure of the American Market
Let’s start with the big question: Why the U.S.?
The U.S. market is a behemoth – home to over 330 million consumers with diverse tastes and needs. Irrespective of what you’re selling artisanal coffee, tech gadgets, or consulting services, there’s a niche waiting for you. Add to that the country’s robust infrastructure, advanced technology, and business-friendly policies, and you’ve got a recipe for success.
But here’s the kicker: you don’t need to be a U.S. citizen to start a business here. That’s right. Non-residents too, can own and operate businesses in the U.S. However, there are a few nuances to understand, like visas, taxes, and state-specific regulations. Don’t worry; we’ve got you covered.
7 Steps to Start a Business in the U.S. as a Non-Resident
Before you dive in, you’ll need to decide on the legal structure of your business. This decision will impact everything from taxes to liability, so choose wisely. Here’s a quick rundown of your options:
1.Limited Liability Company (LLC)
The LLC is a fan favourite among non-residents, and for good reason. It’s flexible, easy to manage, and offers personal asset protection. Plus, you can choose how you want to be taxed—either as a pass-through entity or a corporation.
Pros
Personal assets are shielded from business liabilities.
Minimal compliance requirements compared to corporations.
You can manage it yourself or hire someone to run it.
Cons
Some states have restrictions on foreign-owned LLCs.
If you’re planning to go big – in the lines of venture capital, investors, or going public – a C Corporation might be your best bet.
Pros
Unlimited growth potential (you can issue multiple classes of stock).
Attractive to investors.
Limited liability for shareholders.
Cons
Double taxation (profits taxed at both corporate and individual levels).
3. S Corporation
While S Corporations offer pass-through taxation, they’re generally not an option for non-residents. Why? Because shareholders must be U.S. citizens or residents.
Step 2: Pick the Perfect State for Your Business
Here’s a fun fact: you don’t need to live in the U.S. to start a business here. In fact, you can choose any state for incorporation, regardless of where you plan to operate. But not all states are created equal. Some are more business-friendly than others.
Top States for Business Registration
Delaware: The gold standard for incorporation. Known for its flexible corporate laws and specialized Court of Chancery for business disputes. It is a tax haven too, so win-win!
Nevada: Another tax haven with no state corporate income tax and strong privacy laws.
Wyoming: Low fees, no corporate income tax, and excellent asset protection.
Pro Tip: If you incorporate in one state but operate in another, you’ll need to “foreign qualify” in the state where you do business. This means extra paperwork and fees, so plan accordingly.
Step 3: The Registration Process
Now that you’ve chosen your business structure and state, it’s time to make it official. Here’s how:
Choose a Unique Business Name: Make sure it’s available and doesn’t infringe on any trademarks.
Appoint a Registered Agent: This person or company will receive legal documents on your behalf.
File Formation Documents: Submit the necessary paperwork (like Articles of Organization for LLCs) to the state.
Get an EIN: This is your business’s tax ID number, essential for opening a bank account and filing taxes.
Create Operating Agreements or Bylaws: These documents outline how your business will be run.
Obtain Licenses and Permits: Depending on your industry, you may need specific licenses to operate.
Here’s where things can get tricky for non-residents. U.S. banks have strict regulations, and not all are willing to work with foreign business owners. But don’t fret—there are ways around this.
What You’ll Need:
EIN
Business formation documents
Proof of identity (passport)
Proof of address (both in your home country and the U.S.)
Pro Tip: Consider working with international banks or online banks that cater to non-residents.
Step 5: Understand Visa Options
If you plan to manage your business from within the U.S., you’ll need the right visa. Here are a few options:
E-2 Treaty Investor Visa: Perfect for those making a substantial investment in a U.S. business.
L-1 Intracompany Transferee Visa: Ideal if you’re expanding an existing business to the U.S.
EB-5 Immigrant Investor Visa: Offers a direct path to permanent residency for those willing to invest 1.8million(or1.8million(or900,000 in targeted areas).
Step 6: Tackle Taxes Like a Pro
Ah, taxes – the inevitable part of doing business. As a non-resident, you’ll need to hover through both federal and state tax obligations.
Key Considerations:
Federal income tax
State income tax (if applicable)
Sales tax (if you’re selling goods)
Employment taxes (if you have U.S. employees)
Pro Tip: Feel free to consult with a tax professional who specialises in international business to avoid costly mistakes.
Step 7: Build Your U.S. Presence
Last but not least, it’s time to establish your business’s credibility in the U.S. market.
How to Do It:
Get a professional U.S. business address (virtual offices work great).
Set up a local phone number (VoIP services are your friend).
Build a strong online presence with a professional website and active social media profiles.
Network like crazy! Join local business associations and attend industry events. Nothing beats networking – absolutely nothing.
Final Thoughts
Starting a business in the U.S. as a non-resident may seem like a mountain to climb, but with the right guidance, it’s entirely achievable. The key is to do your homework, seek professional advice when needed, and stay persistent. Remember, every big business started as a small idea. So, take that first step, and who knows? Your American dream might just be a few forms and a phone call away. And, yes – if you’re reading this, then chances are that you’re already ahead in this marathon. Yes, not a race – a business in the US is a long term game & when you have access to resources like Startuptalky – you are more likely to win (winks).
Yes, non-residents can absolutely start and own businesses in the U.S. You don’t need to be a U.S. citizen or resident to do so.
What is an EIN, and do I need one?
An EIN is like a Social Security number for your business. You’ll need one if your business has employees, operates as a corporation or partnership, or if required by your bank. Many non-resident-owned businesses will need an EIN.
Do I need a U.S. bank account?
While not strictly required to form a business, opening a U.S. business bank account is highly recommended for managing your finances and transactions.
