Where the Fearless Dare to Tread

Starting a business in the United States as a refugee is not only possible—it’s a powerful way to rebuild your future, provide for your family, and contribute to your new community. This guide is specifically written for South-Africans who are relocating through the refugee program and want to start their own venture. It covers every critical aspect, with links to official U.S. resources, practical steps, and comparisons to South African systems so you can succeed with confidence.

Choosing the Right Business Structure

Your legal business structure affects how much you pay in taxes, how much paperwork you have to do, and whether your personal assets (like your home or car) are protected if something goes wrong in the business.

Here are the most common U.S. business structures:

Sole Proprietorship

Easy and cheap to set up. You don’t need to register formally in many states. But: you are personally liable for all debts and legal issues. That means if your business is sued or goes bankrupt, your own money and property could be at risk.

LLC (Limited Liability Company)

The most popular choice among new immigrants and small business owners. It separates your personal assets from your business liabilities, which protects your home, savings, and personal belongings. It’s flexible and can be taxed as a sole proprietor, partnership, or even a corporation, depending on what you choose.

Corporation (Inc.)

A more complex option, ideal for larger businesses or those seeking investors. It has stricter rules, more paperwork, and additional taxes (like double taxation in some cases), but it offers strong protection and is necessary for companies planning to issue shares or grow nationally.

Which One Should You Choose as a Refugee Starting Fresh?

Most Amerikaners starting out choose the LLC because it offers:

• Affordable setup (usually between $100–$500 depending on the state)
• Simpler paperwork than a corporation
• Personal protection if the business is sued or goes into debt

In 2024, over 300 immigrants launched successful LLCs across industries like baking, construction, online retail, and cleaning services. LLCs helped them protect their family homes and vehicles while enjoying full access to the American financial and legal system.

Extra Tips

• You can convert a Sole Proprietorship into an LLC later, but it’s better to start with an LLC to avoid legal risk.
• You don’t need U.S. citizenship to start an LLC—you just need a valid address and an EIN from the IRS.
• If you’re not sure, speak to a Small Business Development Centre (SBDC) or CPA—they often offer free advice.

Learn more from the U.S. Small Business Administration:
https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

How to Register a Business

Registering a business in the U.S. is much faster, simpler, and more reliable than in South Africa. You won’t face months of delays or confusing bureaucracy—most states allow you to register fully online and have your paperwork done in less than 2 weeks.

Here’s how to do it:

Step-by-Step

Choose a Business Name

Check that your name isn’t already taken in your state using the Secretary of State’s name search tool. https://www.llcuniversity.com/50-secretary-of-state-sos-business-entity-search/

Tip: Your business name doesn’t have to be your brand name—you can register a formal legal name and operate under a different “Doing Business As” (DBA) name later.

Apply for an EIN (Employer Identification Number)

This is your business’s federal tax number, like a company ID. You’ll need it to open a bank account, hire staff, or file taxes. It’s free and takes 5–10 minutes if you apply online through the IRS. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Register With the State

Every U.S. state has its own registration system, usually through the Secretary of State. Filing fees range from $50 to $500, depending on your state. LLCs, Corporations, and some Sole Proprietorships must register here: https://www.sba.gov/business-guide/launch-your-business/register-your-business

File a DBA (Doing Business As) (Optional but helpful)

If your business operates under a different name from its registered legal name (e.g., “Cape town Fresh Bread” instead of “Vos & Sons LLC”), you’ll need to file a DBA, usually with your county or state.

Register for State Taxes (If needed) 

Some businesses need to register with their State Department of Revenue, especially if they sell goods, hire employees, or operate in industries like construction or food. https://www.sba.gov/business-guide/manage-your-business/pay-taxes#determine-your-state-tax-obligations

Real-World Example

In 2024, over 250 immigrants legally registered businesses in the U.S. in under 30 days. One couple opened a bakery in Texas:

• Applied for their EIN in 10 minutes online
• Registered their LLC in 3 days through the Secretary of State
• Had a working business bank account the next week

They were operational in less than 2 weeks—a major contrast to the 6-month delays they experienced in South Africa.

Tips for Success

• If you’re unsure about anything, visit a Small Business Development Centre (SBDC). Many offer free help with registration: https://americassbdc.org/small-business-consulting-and-training/find-your-sbdc/
• Keep copies of all paperwork, both printed and digital.
• Always use your official business address consistently across registrations (even if it’s your home address).

Registering a Trademark or Business Name

If you want to protect your brand name, logo, slogan, or product identity, you need to register a trademark. This prevents other businesses anywhere in the U.S. from using a name or logo that’s too similar to yours.

Even if your business is small now, protecting your identity early can save you thousands in legal fees or lost business down the line.

What You Can Trademark

• Business name (e.g., “Boer Bread Co.”)
• Logo or symbol (e.g., your bakery’s windmill logo)
• Slogans (e.g., “Taste the Tuis Life”)
• Product names

How to Register a Trademark

Search first to make sure no one else already owns a similar mark:
https://www.uspto.gov/trademarks-application-process/search-trademark-database

File your trademark online with the U.S. Patent and Trademark Office (USPTO):
https://www.uspto.gov/trademarks/apply

Cost: About $350 per category (“class”) of goods or services. You can apply yourself or hire a trademark attorney for help (optional but helpful).

Important Notes

• A registered business name in your state does not give you national protection. Only a USPTO trademark protects you across the U.S.
• If someone else trademarks the name before you, you might be forced to change your name, even if you’ve been using it longer.
• You can use the ™ symbol without registering, but only a registered trademark gives you the right to use the ® symbol.
• The process takes about 6–9 months but is worth it if your brand will grow.

Real Example

In 2024, 50 immigrants registered trademarks to protect unique business names like Voortrekker Roast Coffee and Karoobossie Crafts, avoiding $3,000 in potential legal battles when competitors tried to copy their names.