The political, environmental, and financial conditions in Mexico prompt millions of citizens to migrate to the US in search of a better life. The hope is to get established, send for their families, or raise enough money to provide for their loved ones back home. Though the journey and process for legally entering the US are strenuous, the dream of living a healthy, happy, and purposeful life keeps them going.
Although most Mexican immigrants start off working for US companies, many do this to save money to one day start a business. If this is your goal, there are a few things you should know to be successful.
One of the first things you’ll need to do is decide on a company structure. As an immigrant, you have two options – a limited liability company (LLC) or a Corporation. A company structure provides legal and financial separation between you and your business. Ultimately, you can conduct business in the US without worrying about being personally liable for potential lawsuits.
If you’re not going to operate your business under your birth name, you’ll need to select a company name. As you begin thinking of ideas, don’t forget to consider trademark infringement. You cannot name your company the same or similar to an established business, or you could face legal action.
ITIN And EIN
All business owners operating in the United States are required to pay taxes. Immigrants must obtain an Individual Taxpayer Identification Number (ITIN). This number allows you to run your business legally without having a social security number.
If you plan on hiring employees, you’ll also need to apply for an Employer Identification Number (EIN) to comply with US business tax laws. You must remember this number. If you’ve applied but can’t remember, it’s easy to learn how to retrieve an EIN number. You can check old paperwork or request your number from the IRS.
Register Your Business
The final step to starting a business in the US is registering it as a legal entity in the state you work or reside. There is an application fee associated with this step, but it’s easy to complete the process online.
Acquiring funds as a non-citizen Mexican entrepreneur is an uphill battle. Although Latino business helps stimulate US local economies, approximately 40% of Latino immigrants are turned down for banks’ business loans. You can bypass the need to borrow money by saving from a full-time job or side gig, crowdfunding, or adding a partner. Another option is to look for private lenders and investors that are more open to approving immigrant entrepreneurs’ applications.
Learning The Ropes
US state and federal business laws are complex and plentiful. Failure to comprehend what these laws are can get you in a lot of legal and financial trouble. As language barriers and lack of knowledge are common for Mexican entrepreneurs, learning the ropes is challenging. Navigating the business world in the US requires education and support. The Small Business Administration provides various resources that you can use to learn more about being a business owner. Several Latino organizations offer support to entrepreneurs.
Other than educating yourself on running a US business, you can rely on the services of others. Acquiring a business mentor, translator, or working with other immigrant entrepreneurs with more experience can help you get your company off the ground without a hitch. They can provide advice, translate pertinent information, and help establish a platform for your business to succeed.
There’s nothing wrong with wanting to do and be better for your family. If you’re a Mexican citizen interested in getting your start in the US marketplace, take comfort in knowing it’s possible. If you’re going to be a successful entrepreneur, you must learn and understand the processes required to get started. By following the tips provided above and working with organizations and others you can trust, you’ll save yourself a lot of trouble and accomplish your dreams.