HOW FOREIGN INVESTORS CAN PARTNER WITH U.S. COMPANIES

The United States remains one of the most attractive destinations for global investors seeking long-term security, economic stability, and business growth. Each year, thousands of foreign entrepreneurs and investors seek to form partnerships with U.S. companies — from small enterprises to major corporations.

However, establishing a business relationship in the U.S. requires more than financial resources. It involves legal compliance, business structure planning, due diligence, and understanding federal and state-level regulations.

This guide by STL Global Inc. provides factual and educational information for foreign investors interested in lawfully forming partnerships or joint ventures with U.S.-based businesses.

Disclaimer:
STL Global Inc. does not provide legal, immigration, or investment brokerage services.
The information below is provided for general educational purposes only. All investment or partnership decisions must be made in consultation with licensed professionals, attorneys, or financial advisors in the United States.
 

Official references used in this guide include:

• U.S. Small Business Administration (SBA): https://www.sba.gov/
   
• U.S. Securities and Exchange Commission (SEC): https://www.sec.gov/
   
• U.S. Department of Commerce: https://www.commerce.gov/
   
• Internal Revenue Service (IRS): https://www.irs.gov/businesses
   
• SelectUSA (U.S. Investment Promotion Program): https://www.selectusa.gov/
   

Before any investment or cooperation begins, it is essential to understand the legal structures available for business operations in the United States. Each structure carries different implications for taxes, liability, and ownership rights.

A single individual owns and manages the business. Foreign nationals usually cannot register a sole proprietorship without residing in the U.S. or obtaining a work visa.

A partnership involves two or more parties sharing profits, responsibilities, and liabilities.

• A General Partnership (GP) means both parties share equal responsibility.
   
• A Limited Partnership (LP) allows one party to limit their liability to their investment amount.
   

Official link: https://www.irs.gov/businesses/partnerships

An LLC is the most flexible and popular structure for joint ventures between U.S. and foreign investors.
It protects personal assets and allows profit-sharing through customized agreements.

Foreign investors may legally form or co-own an LLC even without U.S. residency.
Reference: https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

Foreign investors often prefer forming a C-Corporation, which allows multiple shareholders and no residency requirement.
An S-Corporation is limited to U.S. citizens and residents only.

Foreign investors must comply with both federal and state-level laws. Key regulatory points include:

Investors must register their business entity with the Secretary of State of the state where the company operates.
Each state has an online portal (for example, Virginia’s registration portal: https://cis.scc.virginia.gov/).

The IRS requires every U.S. business, including foreign-owned entities, to obtain an Employer Identification Number (EIN).
Apply online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Significant foreign investments (usually over 10% ownership in a U.S. enterprise) must be reported to the Bureau of Economic Analysis (BEA).
Reference: https://www.bea.gov/surveys

If the partnership involves raising capital or selling equity, investors must comply with the Securities Act of 1933 and SEC regulations.
Details: https://www.sec.gov/

Foreign investors should begin by identifying American companies open to collaboration. This can be done through:

• U.S. trade directories and chambers of commerce
   
• Industry associations
   
• Networking events or online B2B platforms
   

Official B2B resource: https://www.trade.gov/

Before signing any partnership, investors must conduct a background and financial review of the U.S. company.
This includes:

• Verifying registration via Secretary of State records
   
• Checking corporate tax compliance (IRS)
   
• Reviewing pending lawsuits or debts
   

The agreement must clearly outline:

• Each party’s ownership percentage
   
• Capital contributions
   
• Profit distribution
   
• Decision-making procedures
   
• Dispute resolution methods
   

All partnership contracts should be reviewed by a licensed U.S. business attorney before execution.

Depending on the structure chosen (LLC, LP, C-Corp), registration should be done with the relevant state authority.
For example, in Delaware (a popular state for foreign incorporation):
https://corp.delaware.gov/

U.S. banks require corporate registration documents, EIN, and verification of ownership.
Foreign investors must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.

Tax responsibilities depend on whether the foreign investor is a resident or non-resident alien under U.S. tax law.

• Foreign-owned LLCs must file annual tax returns even if there is no profit.
   
• Withholding tax may apply to payments made to foreign partners.
   
• Double-taxation treaties may reduce or eliminate tax liabilities, depending on the investor’s country of origin.
   

Official reference: https://www.irs.gov/individuals/international-taxpayers

Foreign investors who wish to reside or frequently travel to the U.S. may qualify for specific visa categories:

• E-2 Investor Visa:
  For nationals of treaty countries who invest a “substantial amount” in a U.S. business.
  https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/treaty.html
   
• EB-5 Immigrant Investor Visa:
  Requires a minimum investment (currently $800,000–$1,050,000) and creation of 10 U.S. jobs.
  https://www.uscis.gov/eb-5
   
• L-1 Visa:
  For investors transferring executives or managers from an overseas branch.
   

STL Global provides informational guidance only; all immigration filings must be done through licensed immigration attorneys.

Foreign investors must safeguard themselves and their partners by:

• Avoiding informal agreements.
   
• Ensuring all capital transfers are bank-documented and declared.
   
• Complying with the Office of Foreign Assets Control (OFAC) sanctions list.
  https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information
   

If an investor’s country is subject to sanctions (e.g., Iran, Russia, Syria), transactions must be authorized by OFAC before proceeding.

A professional partnership agreement should include clear exit provisions, such as:

• Buyout options
   
• Valuation methods for assets and shares
   
• Arbitration or mediation clauses
   

Most international commercial disputes are handled through civil courts or arbitration centers under the American Arbitration Association (AAA):
https://www.adr.org/

STL Global Inc. assists international entrepreneurs by:

• Providing verified business information about the U.S. market;
   
• Coordinating communication between investors and certified U.S. professionals;
   
• Referring interested clients to licensed attorneys, accountants, and registered brokers;
   
• Ensuring all introductions and consultations are informational only, without acting as an intermediary or commission-based agent.
   

This ensures compliance with U.S. Federal Trade Commission (FTC) and SEC regulations.

Reference: https://www.ftc.gov/business-guidance

Partnering with a U.S. company can open vast opportunities for growth and global expansion. However, success requires compliance, patience, and reliance on legitimate professionals.

Foreign investors should never engage in undocumented or unlicensed transactions.
Proper legal consultation, transparent agreements, and verified documentation are essential for long-term stability.

STL Global Inc. acts as an informational bridge between global investors and American opportunities—helping both sides connect responsibly, ethically, and in accordance with the law.

For additional information or to request an Informational Consultation Form, please contact STL Global through our official communication channels.

This page is for educational and informational purposes only.
STL Global Inc. does not provide legal or financial services, and any references to investment or partnership are illustrative and non-binding.