How to Start a Business in the United States from Nigeria [Ultimate Guide]

As an ambitious Nigerian, the dream isn’t just about starting a business. It’s about building one that’s globally credible, financially agile, and structurally trusted.

You could be a freelancer tired of Stripe restrictions, a digital entrepreneur struggling to receive PayPal payments, or a founder with big plans beyond Nigeria’s borders. The idea of registering a business in the United States has likely crossed your mind more than once.

And for good reason.

A U.S. business entity, especially a Limited Liability Company (LLC) opens doors to powerful tools that you can’t access locally – international payment processors like Stripe and Square, borderless bank accounts like Mercury and Wise, seamless integration with global platforms, and even access to venture capital or startup accelerators.

But as exciting as it sounds, the path isn’t always clear. You may be asking:

• Can I register a U.S. company from Nigeria without a visa or SSN?

• What’s the difference between an LLC and a C-Corp for a non-resident?

• How do I open a U.S. business bank account remotely?

• What about taxes? Will I get into trouble I can’t see coming?

These aren’t just logistical questions. They represent deeper concerns around legitimacy, compliance, and the fear of wasting time or money on a process you don’t fully understand, especially with all the conflicting advice online.

This guide exists to bridge that gap.

With a clear, step-by-step breakdown of everything from choosing the right business structure and state, to securing your Employer Identification Number (EIN), to opening a remote-friendly U.S. bank account, we’ll walk you through not just how to start a U.S. business from Nigeria, but why it matters, what it unlocks, and what to avoid along the way.

Can I Legally Start a Business in the US as a Nigerian?

Yes. You can legally start and own a business in the United States, even without a U.S. visa, Green Card, or Social Security Number (SSN).

The U.S. is one of the few countries that actively allows non-resident foreigners to register and operate companies, especially through structures like the Limited Liability Company (LLC) and C-Corporation (C-Corp).

In fact, according to data from the U.S. Chamber of Commerce, 4 in 10 business owners in the US are foreign-born – with a growing number formed entirely online by non-residents in Africa, Asia, and Eastern Europe.

This is great news if you want:

• Access to international payment platforms like Stripe, PayPal, and Square

• U.S.-based business bank accounts (e.g. Mercury, Relay, Wise)

• The ability to invoice U.S. clients in USD

• A business entity that builds global trust and protects personal liability

 

You Don’t Need to Be a U.S. Citizen or Green Card Holder

The U.S. federal and state laws do not require you to be a U.S. citizen to form an LLC or C-Corp. As a Nigerian citizen, you can:

• Legally own 100% of a U.S. business

• Operate it remotely from anywhere

• Hire U.S.-based service providers (accountants, virtual assistants, developers)

• Access global markets without establishing a physical presence in the U.S.

 

You Also Don’t Need a U.S. Visa or SSN (Social Security Number)

While having an SSN or ITIN (Individual Taxpayer Identification Number) can make certain applications easier, especially when dealing with banks or the IRS. However, they’re not mandatory to start.

Most Nigerian founders:

• Register their company online through formation platforms like Firstbase or Doola.

• Use a registered agent and a U.S. virtual business address

• Apply for an EIN (Employer Identification Number) from the IRS as a foreigner, either directly or via a formation service

• Open remote-friendly U.S. business bank accounts through Mercury, Relay, or Wise

You’ll also find that many of these services are designed specifically for non-U.S. residents, with built-in support for international founders who don’t have U.S. documents.

But You Do Need to Stay Compliant

While it’s legal, it’s important to know that owning a U.S. business as a foreigner comes with responsibilities:

• You must comply with U.S. tax laws and possibly file an annual tax return (even if you owe $0)

• You may need to file Form 5472 with the IRS if you own 25% or more of the business

• You should renew your business annually and maintain a registered agent

• You’ll need to track income earned in the U.S. vs income earned in Nigeria (for potential double taxation treaties)

 

Why This Matters to You

For Nigerian entrepreneurs, the U.S. entity isn’t just a formality. It’s a powerful enabler:

• It removes the payment restrictions that often block Nigerian freelancers and startups from serving global clients

• It boosts brand trust for SaaS founders, consultants, and creators selling to Western audiences

• It gives you access to business tools, tax advantages, and potential investor interest you may not easily get in Nigeria

Bottom line: Yes, it’s legal and increasingly common for Nigerians to register a U.S. business remotely. But you need to do it the right way: with a clear understanding of the rules, the tools, and the responsibilities that come with it.

Step-by-Step Guide: How to Start a U.S. Business from Nigeria

A statement by the former US President – Joseph Biden, highlighted that 21 million new business applications were filled between 2021 – 2024, and a significant number were created entirely online by international founders, including many from Nigeria.

Why? Because the barriers to entry are lower than ever, and the benefits, from global credibility to unrestricted payment access, are simply too powerful to ignore.

But the biggest roadblock for most Nigerian entrepreneurs isn’t desire. It’s clarity.

How exactly do you start?
What steps are legal, effective, and necessary?
Where do you begin, and what can go wrong if you miss a detail?

This step-by-step breakdown answers those questions with precision, so you can move forward with confidence and avoid the guesswork that causes most people to stall.

Step 1: Choose the Right Business Structure (LLC vs. C-Corp)

For 95% of Nigerian founders, a Limited Liability Company (LLC) is the best option.
Why LLC?

• Simple to form and maintain

• Offers pass-through taxation (you avoid double taxation)

• No requirement for U.S. residency or physical office

• Ideal for freelancers, SaaS builders, service providers, eCommerce owners

A C-Corporation (C-Corp), typically used by startups seeking U.S. venture funding, involves stricter compliance and double taxation unless structured strategically.

Recommended for most Nigerian entrepreneurs: LLC

Step 2: Choose the Best State to Register Your Business

You don’t need to register your LLC in all 50 states. For foreign founders, the two most common states are:

• Delaware: Known for strong legal protection and global investor recognition

• Wyoming: offers benefits such as lower fees, privacy protection, and fewer annual requirements

Popular choice for simplicity and prestige: Delaware LLC

Step 3: Hire a Registered Agent with a U.S. Business Address

U.S. law requires that every LLC has a registered agent – a person or company with a physical address in the state where your business is registered, responsible for receiving legal documents.

Platforms like Firstbase, Doola, Clerk, or Northwest Registered Agent offer this service — including a U.S. business mailing address and a US phone number (required for IRS and banking).

✅ This step is essential — without it, your registration can’t proceed.

Step 4: Register Your U.S. Business (LLC Formation)

This is where your company becomes real. You can either:

• Register manually through the state’s Secretary of State portal

• Use a formation service like Firstbase, Doola, or Stripe Atlas

A typical formation package includes:

• Filing your Articles of Organization

• Assigning a registered agent

• Generating your Operating Agreement (required for banks)

• Submitting compliance docs

• Starting your EIN application

Time: ~1 – 3 business days (varies by state and provider)

Step 5: Apply for an EIN (Employer Identification Number)

Your EIN is like your business’s Tax ID. It’s required to open a bank account, file taxes, and register with payment processors like Stripe and PayPal.

As a Nigerian founder (non-U.S. resident with no SSN), you can:

• Apply directly via IRS Form SS-4 by fax

• Use a service provider to expedite it (often included in formation bundles)

Make sure your business name on the EIN matches your LLC exactly.

Step 6: Open a U.S. Business Bank Account Remotely

Now that you have your LLC and EIN, you can open a U.S. business bank account online. No U.S. visit required.

Top remote-friendly banks for Nigerian founders:

• Mercury: Trusted by startups; easy KYC process

• Relay: Multiple virtual cards and banking permissions

• Wise (Business): Great for currency conversion and global transfers

Most banks require:

• Your EIN confirmation letter (CP 575 or 147C)

• LLC formation documents

• Operating agreement

• Valid ID (international passport is fine)

• A US phone number

Step 7: Set Up Your Payment Infrastructure (Stripe, PayPal, etc.)

Once your bank account is active, you can now unlock:

• Stripe (U.S. account): for SaaS, subscriptions, digital products

• PayPal Business (U.S.): for freelancers and consultants

• Wise or Payoneer: for global payments and payouts

Step 8: Understand and Prepare for U.S. Compliance

Even if your business operates from Nigeria, your U.S. entity must:

• File annual reports (depending on the state)

• Maintain a registered agent

• Possibly file Form 5472 (if 25%+ owned by a foreigner)

• Report taxes (federal + state, depending on income source)

It’s smart to hire a U.S.-based accountant or tax advisor familiar with non-resident founders.

Pro Tip: Document Everything and Stay Organized

From formation certificates to EIN letters, keep digital backups. Many U.S. banks and platforms request verification periodically. Having your documents neatly stored reduces friction and builds trust.

Common Tools & Platforms That Can Help You Start a U.S. Businesses

Navigating the U.S. business landscape from Nigeria can feel overwhelming, especially when it comes to handling paperwork, compliance, payments, banking, and tech infrastructure. The good news? You’re not alone, and you don’t have to build everything from scratch.

In fact, the global business services market is projected to reach $1380.6 billion by 2032, fueled largely by international entrepreneurs , including a growing number from Nigeria who are using digital platforms to break geographic barriers.

Below are the most essential platforms that will simplify your U.S. business formation journey.

Business Formation Services

These platforms make it fast and legal to set up a U.S.-registered LLC or C-Corp from anywhere, including Nigeria, without needing a U.S. visa or address.

• Firstbase: End-to-end formation (Delaware LLC or C-Corp), EIN, bank account setup, registered agent, Stripe integration, and compliance dashboard.

• Doola: Popular among African founders. Offers LLC registration, EIN, U.S. address, tax filing support, and access to banking.

• Clerk: Offers LLC formation plus virtual mailbox services with flexible monthly plans.

• Stripe Atlas: Ideal for startups; forms a Delaware C-Corp, provides EIN, bank account with Mercury, and tax filing guidance.

Firstbase and Doola both include EINs and compliance reminders, which reduce legal risk for non-resident business owners.

Banking & Financial Tools

Traditional U.S. banks often require in-person visits. But these fintech platforms are designed for remote founders.

• Mercury: U.S.-based digital banking designed for startups. Offers virtual cards, wire transfers, and FDIC-insured accounts. Accepts non-U.S. founders if formed via partners like Firstbase.

• Relay: Great for managing cash flow, creating multiple accounts, and sharing access with a remote team.

• Wise (formerly TransferWise): Provides a U.S. bank account (ACH and routing numbers), perfect for receiving payments globally.

• Payoneer: Ideal for freelancers and consultants looking to receive USD payments from global clients.

• QuickBooks / Wave: For bookkeeping, invoicing, and tracking U.S. financial reports (helps during tax season).

Tax & Legal Compliance Tools

U.S. compliance isn’t optional. Missing filings like Form 5472 or annual reports can lead to hefty penalties. These tools keep you compliant:

• Doola Compliance: Helps Nigerian founders file taxes, submit BOI reports, and stay on track with annual state filings.

• TaxHub: U.S. accountants who specialize in non-resident LLCs. Offers federal and state filing packages.

• Bench Accounting: Bookkeeping + tax filing, ideal for U.S. startups with revenue.

• LegalZoom: Good for ad hoc legal documents (e.g. Operating Agreement, contracts, NDAs).

 

Operational Tools for Running a U.S. Business Remotely

After setup, you need tools to actually run your business. These are the most common ones:

• PressOne Africa: For a reliable US business phone number that can be used for calls, SMS, call forwarding, and account verifications across US online platforms.

• Google Workspace / Zoho Mail: For professional emails (e.g., you@yourcompany.com), document sharing, and video meetings.

• Notion / Trello / ClickUp: For organizing business processes, managing tasks, and keeping remote teams on track.

• Calendly: To schedule meetings with clients or partners across time zones.

• DocuSign / HelloSign: Legally binding e-signatures — a must-have when dealing with U.S. clients or investors.

• Stripe: To accept payments for your SaaS, digital product, or service. Requires U.S. bank account + EIN.

Marketing, Sales & CRM Tools

Once your U.S. business is live, you need tools to acquire and nurture customers:

• PressOne Africa: Make and receive calls like a US resident, send SMS, record customer calls to gain insights for business growth.

• HubSpot (Free CRM): Manage leads, automate emails, and track U.S. customer relationships.

• Mailchimp / ConvertKit: Email marketing for eCommerce or digital products.

• Canva Pro: For branded social media content, pitch decks, and marketing visuals.

• ChatGPT + Grammarly: For creating copy, pitches, and business content that sounds polished to a U.S. audience.

 

Cost Breakdown: How Much Does It Cost to Start a U.S. Business from Nigeria?

One of the most common (and valid) questions you’ll probably be asking before taking the leap is: “How much will this actually cost me from end to end?”

For many, the fear isn’t just spending money — it’s spending money the wrong way, getting stuck in regulatory limbo, or discovering hidden fees months after formation.

So let’s break it down clearly, transparently, and in practical terms — no surprises, just informed choices.

Here’s a realistic cost breakdown tailored specifically for Nigerian founders starting an LLC (the most common choice) in the U.S.:

1. Business Formation Costs

Total (Formation Phase): $350 – $1,000

 

2. Banking & Financial Tools

 

3. Compliance & Annual Fees

4. Operational & Marketing Tools (Optional but Important)

 

Grand Total Estimate:

Startup Year One Cost: ~ $800 – $2,500 (all-inclusive, depending on scope and tools)

Why This Matters

These costs are far more attainable than relocating or trying to establish a U.S. presence physically. You’re essentially gaining:

• A U.S.-recognized business identity (trusted by U.S. clients, platforms, and investors),

• Access to Stripe, PayPal, Amazon, and other global payment gateways, and

• The legal infrastructure needed to scale internationally.

More importantly, understanding these numbers upfront removes the uncertainty that leads to decision paralysis. You’re not just spending. You’re investing in clarity, legitimacy, and long-term growth.

Pitfalls and Mistakes to Avoid

Starting a U.S. business from Nigeria is a major move. But with big opportunities come equally big risks if you’re not aware of the common missteps.

Many Nigerian entrepreneurs rush in, believing that registering an LLC in Delaware is all it takes. But paperwork alone doesn’t create a real business, and certainly not a sustainable one.

Let’s break down the most common traps that smart entrepreneurs should sidestep:

1. Ignoring U.S. Compliance Requirements

Too many founders treat LLC registration as the finish line, not the starting point. However, even as a non-resident, you must adhere to federal and state tax obligations.

This includes getting an Employer Identification Number (EIN) from the IRS, filing annual reports depending on the state, and possibly even hiring a registered agent if you don’t have a U.S. address.

Mistake: Not hiring a U.S.-based accountant or compliance advisor early.

2. Using a Personal or Nigerian-Based Phone Number

Using a Nigerian phone number when setting up U.S. business services or trying to close clients immediately creates trust friction. It can result in verification issues when opening a U.S. business bank account or advertising on platforms like Meta and Google.

Solution: Tools like PressOne Africa’s US phone number help you receive and make calls like a U.S. resident and set up your online presence without raising red flags.

3. Choosing the Wrong State for Registration

While Delaware and Wyoming are popular for startups, they may not be the most practical if your target market or potential clients are based in states with specific local requirements (e.g., sales tax permits in California or New York).

Choosing the wrong state can result in double taxation or legal rework later.

Mistake: Selecting a state based only on internet popularity instead of legal or tax realities.

4. Skipping Market Validation and Customer Research

Motivation is high, and the dream is real, but skipping market validation because “the U.S. market is big” is a dangerous mindset.

Without understanding local buyer behavior, competition, or pricing expectations, your offer may fall flat, even with a well-structured business.

Solution: Use tools like Google Trends, AnswerThePublic, or U.S.-based forums to deeply understand your niche before launching.

5. Underestimating Cost & Financial Planning

Many entrepreneurs believe they can bootstrap their way through, only to discover unexpected costs: business bank account maintenance fees, U.S. tax filing services, virtual office fees, etc.

Mistake: Not budgeting for ongoing compliance, software, and marketing expenses.

6. Failing to Build Trust with U.S. Customers

Even with a legitimate business, Nigerian founders face implicit bias and credibility challenges in the U.S. digital space.

If you fail to get a US-based phone number, website or social proof like reviews, your conversion rates can be badly affected.

Solution: Invest in a U.S.-branded online presence US number, .com domain, U.S. address (via virtual office), and active social media tailored for a U.S. audience.

7. Expecting Overnight Results

Online gurus may suggest it’s easy to “start a U.S. business from your laptop in Lagos.” The truth is: it takes time.

Even the best-laid plans need iteration, feedback, and patient execution.

Mistake: Giving up too early because results don’t come fast.

Frequently Asked Questions on Setting Up a U.S. Business from Nigeria

 

Can a non-U.S. citizen start a business in the United States?

Yes. The U.S. does not require citizenship or a visa to form a Limited Liability Company (LLC) or Corporation.

Foreign nationals, including Nigerians, can register a business in states like Delaware, Wyoming, or Florida without physically living in the country.

However, other elements like getting an EIN, opening a U.S. bank account, and filing taxes require additional steps.

The IRS allows foreigners to obtain an EIN without a Social Security Number (SSN), using Form SS-4.

What type of business structure is best for Nigerians registering in the U.S.?

The LLC (Limited Liability Company) is the most recommended structure for non-residents. It offers legal protection, is easy to manage, and does not require shareholders or U.S.-based directors.

It’s ideal for freelancers, online entrepreneurs, eCommerce sellers, consultants, and service providers.

Can I open a U.S. business bank account from Nigeria?

Yes. But not with all banks. Many traditional banks require physical presence, but fintechs like Mercury, Relay, or Wise allow Nigerian founders to open U.S. accounts remotely after LLC registration and EIN approval.

Is a U.S. address required to start a business from Nigeria?

Yes, most states require a registered agent with a physical U.S. address (not a P.O. box). Fortunately, you can get a US number + address bundle at just ₦25,000 from PressOne Africa to meet this requirement without being in the U.S.

Do I need a U.S. phone number to open business accounts or run ads?

Yes, many U.S. services like business banking, PayPal, Google Ads, and Facebook Business flag non-U.S. phone numbers during verification.

A solution like PressOne Africa’s U.S. phone number helps bypass these roadblocks and build trust with American clients.

How much does it cost to start a U.S. business from Nigeria?

Expect initial costs to fall between $500 – $1,500, depending on your chosen state, legal support, and software tools.
Costs may include:

• LLC filing fees ($50 – $500)

• EIN application (free)

• Registered agent services

• Business email and tools

• U.S. phone number (e.g. PressOne: ₦15,000/month)

Will I pay U.S. taxes if I don’t live in the U.S.?

Yes, potentially. The U.S. taxes income generated within its borders, regardless of the founder’s location.

If your business earns from U.S. clients, you may be required to file a tax return—even without a visa or residence. Hiring a cross-border tax advisor is crucial to avoid double taxation.

Can I use a U.S. business to apply for a visa later?

While registering a U.S. business doesn’t automatically grant immigration benefits, it can strengthen future visa applications, especially under categories like B-1 (Business Visitor) or E-2 (Investor Visa)—if you’re eligible.

Can I receive payments from U.S. clients directly into my Nigerian account?

Technically yes, but it’s not ideal for scaling. Most U.S. clients prefer paying to a U.S. account via ACH or Stripe. Without this, you risk payment friction and trust issues. Platforms like Mercury or Payoneer can bridge this gap.

What are the biggest mistakes to avoid when starting a U.S. business from Nigeria?

• Registering in the wrong state

• Using a Nigerian number for verification

• Not hiring a U.S.-based tax advisor

• Skipping EIN application

• Ignoring compliance and tax filings

• Trying to stay invisible (no website, no branding)

 

Conclusion

Starting a business in the United States from Nigeria may seem like a bold leap and in many ways, it is. But it’s not as distant or unattainable as it once was.

Thanks to digital tools, global business formation services, and the growing infrastructure that supports cross-border entrepreneurship, more Nigerians are turning their U.S. business dreams into thriving realities.

Whether your goal is to gain access to U.S. customers, open global banking channels, improve trust with international clients, or simply operate in a market with more stability, the pathway is not only legal but structured to support remote founders.

With an LLC, EIN, a U.S. business bank account, a U.S. phone number like PressOne Africa, and the right set of tools, you can build a brand that’s perceived as local even if you’re based in Lagos, Abuja, or anywhere else in Nigeria.

Still, the journey requires clarity. Understanding U.S. compliance, filing requirements, and how to structure your operations can save you from costly missteps.

But as with any meaningful venture, action beats perfection. The most successful Nigerian founders didn’t wait until they had all the answers — they started with what they knew, used the right tools, sought guidance, and learned by building.

In a world where customers don’t care where you live — only how well you serve them — your location no longer has to define your limitation. You’re not just starting a U.S. business. You’re building a borderless future.