Being an undocumented immigrant in the US can pose a real challenge to attaining the American dream. However, your aspirations as an immigrant can still be realized once you understand the possibilities within the complex immigration system.
Several lenders offer ITIN loans to immigrants to support their businesses. This kind of support has been the lifeline of Latino many companies in the USA. Come along as we navigate how to become an entrepreneur and access financing as an immigrant in the US.
Before getting started, who is an immigrant entrepreneur?
This is a person who starts a business in the US without citizenship status.
Why an immigrant can start a business Being an immigrant in the US can be limiting in a lot of ways. To launch yourself as an entrepreneur, you must surmount complex immigration procedures.
Permissive business laws in some states, however, have allowed many foreign citizens to become successful entrepreneurs. Nevada, Delaware, New York, Montana, South Dakota, and Wyoming are some of the states with lenient business policies and are popular with immigrant businesses.
Starting a Business Legally Without an SSN
As an immigrant, you can still start a business in the USA even without a Social Security Number (SSN). Here are the steps you need to follow:
1- Register for an ITIN number
This is a number issued by the IRS to immigrants who aren’t eligible for a Social Security Number. ITINs serve the sole purpose of Federal tax returns.
2- Register Your Business as a DBA
A DBA (‘Doing business as’) refers to the business name you register with your local government. Different local governments have additional requirements, so you’ll need to meet the specific needs of the state your business will be located in.
A DBA is required to prove that you are conducting business legally in the US. It’s also a requirement when opening a business account or getting a loan from any financial institution.
3- Open a Business Bank Account
By opening a business account, you facilitate accounting for your business funds that aid in tax returns. As an immigrant, you can open a business account in the US. The documentation to be provided will vary from one bank to another but generally include:
- Personal identification document: passport, driver’s license, birth certificate, or consular identification card.
- Residential Address: – From a lease agreement, a recent utility bill, or a driver’s license.
- Identification Number – In the absence of a social security number, banks also accept your ITIN as well as your Alien Identification Number.
- Business Documentation – Such as Employer Identification Number.
How to get business funding and loans for immigrants
You can finance your business as an immigrant by:
-Contributions from family and friends
-Online Crowdfunding Platforms
The above ways can be a source of cheap funding. However, the cumulative amount might not be sufficient for your business needs.
– Small Business Administration (SBA) Loans
As an immigrant, you will be required to fill in extensive amounts of paperwork which can be intimidating and discouraging. ITIN loans are examples of loans as:
-Business credit cards: These are appropriate when you require quick financing.
-Microloans or Short-Term Business Loans: Lack of credit history can create a challenge for an immigrant to access traditional loans.
-Microloans or Short-Term Business loans might be the most accessible to immigrants as they have less stringent requirements.
The challenges of accessing financing as a US immigrant are humongous. However, online lenders offer Itin loans to immigrating Latinos to push and encourage all people who want to go for their dreams.
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