10 steps to starting a business in the US as an African immigrant

Starting a business in the United States as an African immigrant is entirely possible with the right information and planning. The US has a well-structured business environment, but it is important to understand the legal, financial and operational steps involved.

According to Afriex, here are ten practical steps to help African immigrants navigate the process and establish a successful business in the US

Understand your visa and work eligibility
To lawfully start and run a business in the US, your immigration status must allow entrepreneurial activity. Common visa types include the E-2 Investor Visa, suitable for those investing a significant sum in a US business, and the O-1 Visa, for individuals with exceptional ability in their field. Some H-1B visa holders can also start businesses, though this requires careful structuring. Permanent residents with a green card face fewer restrictions and can operate businesses freely.

Research and validate your business idea
Refining your idea is an important step before investing time and resources. The product or service you plan to offer should address a genuine need in the market. Use tools such as Google Trends, market reports, and customer surveys to assess demand. Many African immigrants succeed by offering products or services that introduce African culture to the US market, such as food, fashion or tech-based services.

Create a business plan
A business plan is crucial for laying out your strategy. It should include a summary of the business, an analysis of the target market and competitors, a description of your product or service, and a financial forecast with budgets and expected income. This document serves as a guide for launching and growing your venture, and is also vital if you seek funding from banks or investors.

Choose a business structure
Selecting the appropriate legal structure influences your taxes, liability, and how the business is managed. Options include sole proprietorships, which are simple to set up but carry personal liability; limited liability companies (LLCs), which separate personal and business assets, and corporations, which are better suited to businesses planning to raise external capital. Once you have chosen a structure, you must register it in the state where the business will operate.

Register your business and obtain necessary permits
After selecting your structure, register your business name with the Secretary of State in your operating state. You’ll also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service for tax and banking purposes. Depending on your location and industry, you may require additional licences or permits from state and local authorities, which must be secured before you begin trading.

Open a business bank account
Separating your personal and business finances is essential. Opening a dedicated business bank account allows for better financial management and tax reporting.

Secure funding
Access to capital is a common challenge, but there are multiple funding options available. Small Business Administration (SBA) loans are one route, and there are also grants aimed specifically at minority entrepreneurs, including Africans. Crowdfunding platforms such as Kickstarter or GoFundMe can be used to raise initial capital. Building a strong credit history in the US will also help you secure loans in the future.

Build your network
Networking is a critical aspect of business success in the US. Joining local business groups, attending industry events, and connecting with other African entrepreneurs through platforms like LinkedIn can open up opportunities. Free mentoring services can provide expert advice on various challenges you may face as a new business owner.

Leverage digital marketing
An online presence is essential for reaching customers. Start with a professional website to showcase your services or products. Use platforms like Instagram, Facebook, and TikTok to build a following and engage with your target audience. Optimising your site for search engines (SEO) increases visibility, and paid advertising on Google or social media can further expand your reach.

Stay compliant with tax and legal requirements
Fulfilling tax obligations is non-negotiable. You must file federal, state, and sometimes local taxes. Keep accurate financial records from the outset and stay informed about your responsibilities. Working with a tax professional can help ensure you remain compliant as laws and regulations change.