Türkiye and the United States share one of the most commercially active bilateral relationships in the world. Turkish entrepreneurs and investors have long recognized the US as the world’s most powerful market and in 2026, the path to establishing a US business presence has never been more accessible or more strategic.
Whether you are a Turkish entrepreneur launching a SaaS product, an e-commerce seller wanting to accept US payments, a holding company seeking to expand, or an investor exploring the E-2 Treaty Investor Visa, this guide walks you through everything you need to know about incorporating in the United States from choosing the right structure and state to opening your bank account, meeting your tax obligations, and protecting your investment.
At Blitzer Finance, our founder’s deep roots in the Turkish business community and years of experience working with foreign-owned US businesses put us in a unique position to guide you through this journey not just on paper, but in practice.
Why Turkish Entrepreneurs Are Choosing to Incorporate in the US
The reasons are practical and compelling. A US entity gives you access to the world’s most trusted financial infrastructure: Stripe, PayPal, and US-based payment processors that many non-US entities simply cannot use without friction or account holds. It gives you a USD business bank account, the ability to invoice US clients with credibility, and access to US-based investors who typically require a domestic corporate structure before they will invest.
For Turkish founders building a global business, a US company is not just an administrative formality. It is the infrastructure that makes global business work. Beyond payments and banking, a US incorporation opens several additional doors:
- The ability to hire US employees and grant equity through stock option plans
- Access to raise Series funding from US venture capital firms
- Pursuit of the E-2 Treaty Investor Visa allowing Turkish citizens to live and work in the US based on their investment
- Reduced withholding taxes under the US-Türkiye bilateral tax treaty
| Türkiye holds both an E-1 (Treaty Trader) and E-2 (Treaty Investor) agreement with the United States — making Turkish passport holders uniquely well-positioned among international investors. |
Step 1: Choose the Right Business Structure
The first decision you will make and the one with the most long-term consequences is which type of US entity to form. For Turkish investors and founders, two structures dominate: the LLC and the C-Corporation.
The LLC (Limited Liability Company)
The LLC is the most popular structure for international founders entering the US market for the first time. It offers personal liability protection, pass-through taxation, and considerable flexibility in governance. As a non-US resident, you can own 100% of a US LLC without needing a visa, green card, or Social Security Number.
The LLC is the right choice if you are building a service business, online business, SaaS product, consulting firm, or e-commerce operation and if you do not plan to raise venture capital in the near term.
One important nuance: if your LLC earns income that is not ‘Effectively Connected’ to a US trade or business — for example, you operate entirely from Türkiye with no US employees, office, or inventory that income may not be subject to US federal income tax at all. This is one of the most powerful tax advantages available to foreign-owned LLCs.
The C-Corporation
If you are building a venture-backed startup, planning to issue stock options to employees, or intending to raise institutional funding in the US, the C-Corporation particularly a Delaware C-Corp is the standard structure that US investors expect. US venture capital firms and angel investors almost universally require a Delaware C-Corp before they will invest.
The trade-off is that a C-Corp is subject to federal corporate income tax at 21%, plus any applicable state tax, and dividends are taxed again at the shareholder level. For this reason, the C-Corp is generally not recommended for a business that simply needs US payment infrastructure.
LLC vs C-Corporation — Quick Decision Guide
| LLC | C-Corporation | |
| Best for | Service, e-commerce, SaaS, consulting | VC-backed startups, equity issuance |
| Taxation | Pass-through (no entity-level federal tax) | 21% federal corporate tax + double taxation |
| Investor readiness | Limited (most VCs require C-Corp) | Industry standard for US investors |
| Complexity | Lower | Higher |
| Recommended state | Wyoming or Delaware | Delaware |
| Non-resident ownership | Yes, 100% allowed | Yes, 100% allowed |
| Stock options | Not ideal | Designed for this |
Step 2: Choose the Right State
You do not need to live in or even operate in a state to incorporate there. Most international founders incorporate in one of three states: Delaware, Wyoming, or New Mexico.
Delaware
Delaware is home to over 66% of Fortune 500 companies and is the undisputed standard for startup incorporation in the United States. Its Court of Chancery — a specialized business court — has centuries of well-established corporate law. If you plan to raise venture capital, pursue institutional investment, or exit via an M&A deal or IPO, Delaware is the right choice.
Blitzer Finance itself is based in Delaware — a deliberate choice that reflects our familiarity with and commitment to Delaware’s business environment.
Wyoming
Wyoming is the leading choice for cost-conscious founders who need a simple, low-maintenance LLC for global business operations. It offers no state corporate income tax, no state personal income tax, strong member privacy (owners are not publicly listed), and low annual fees.
New Mexico
The most cost-effective option of the three, New Mexico has no annual report requirements and very low formation fees. It is worth considering for founders who want minimal ongoing compliance costs, though it lacks Wyoming’s privacy advantages and Delaware’s legal prestige.
| For Turkish Investors Seeking the E-2 Visa:If your goal is to use your US business as a pathway to an E-2 Treaty Investor Visa, Delaware or a reputable state with a clear legal record is always preferable for immigration purposes, as it demonstrates seriousness and institutional credibility. |
Step 3: The Incorporation Process — Step by Step
Here is a practical overview of how the process works for a Turkish non-resident:
1. Reserve your business name
Check availability on the Secretary of State website of your chosen state. Your name must include ‘LLC’ or ‘Limited Liability Company’ for an LLC, or ‘Inc.’ or ‘Corp.’ for a corporation.
2. Appoint a Registered Agent
Every US entity must designate a Registered Agent a service with a physical address in the formation state who receives legal and government documents on behalf of the company. Fees typically range from $50 to $150 per year.
3. File Articles of Organization or Certificate of Incorporation
This is the legal document filed with the state that formally creates your entity. Filing fees range from around $50 in Wyoming to $90 in Delaware. Processing generally takes one to two business days in Delaware and Wyoming.
4. Draft your Operating Agreement or Bylaws
An operating agreement governs ownership percentages, profit distribution, decision-making rules, and what happens if a member exits. Banks will ask for it when you open your business account. Do not skip this step.
5. Obtain your Employer Identification Number (EIN)
The EIN is your company’s federal tax identity. As a non-US resident without a Social Security Number, you apply by completing IRS Form SS-4 and either calling the IRS International Line (+1-267-941-1099) or submitting by fax. EIN processing via fax typically takes 30 to 45 business days in 2026.
| Important: Do not attempt to apply for an EIN online. The online system requires an SSN and will reject foreign applicants. This is one of the most common stumbling blocks for international founders — professional assistance here is well worth the cost. |
Step 4: Open a US Business Bank Account
A US bank account is the critical piece that unlocks your ability to accept payments, pay US vendors, run payroll, and operate credibly in the American market.
Traditional banks such as Chase and Wells Fargo generally require in-person visits, making them impractical for Turkish founders who are not yet residing in the US. Fintech-based banking platforms have transformed this landscape, Mercury, Relay, and Airwallex all support remote account opening for foreign-owned US entities.
To open your account you will need:
- EIN confirmation letter (IRS Form CP 575)
- Certified Articles of Organization or Certificate of Incorporation
- Operating Agreement or Bylaws
- Passport and proof of foreign address (utility bill or bank statement)
- ITIN (Individual Taxpayer Identification Number) — some banks require this
| Critical rule: Do not apply for your bank account until your EIN has been fully confirmed. Applying without one will result in automatic rejection. |
Step 5: Understand Your US Tax Obligations
This is where Turkish investors most commonly make expensive mistakes and where professional guidance pays for itself many times over.
For Foreign-Owned LLCs
Even if your LLC earns no income in its first year, you may have mandatory IRS filing requirements. Foreign-owned single-member LLCs where 25% or more is owned by non-US persons must file Form 5472 (Information Return of a 25% Foreign-Owned US Corporation) along with a pro-forma Form 1120 each year. These are information returns no tax is owed but failure to file carries a penalty of $25,000 per form, per year.
| The IRS has significantly increased enforcement against foreign-owned entities in recent years. A $25,000 penalty for a missed Form 5472 in year one is a painful and entirely avoidable start to your US business journey. |
ECI vs FDAP Income
Income ‘Effectively Connected’ to a US trade or business (ECI) is subject to US federal income tax. Passive US-sourced income — dividends, interest, and royalties (FDAP income) is generally taxed at a flat 30% withholding rate unless a tax treaty reduces that rate.
The US-Türkiye Tax Treaty
The treaty between the United States and Türkiye reduces withholding rates on certain categories of income flowing between the two countries, provides protections against double taxation, and allocates taxing rights clearly between the two jurisdictions. Turkish residents should file Form W-8BEN with US payers to claim treaty benefits on applicable income.
The E-2 Treaty Investor Visa: A Pathway to the US
One of the most significant advantages available to Turkish investors specifically is the E-2 Treaty Investor Visa. Türkiye has maintained an E-2 treaty with the United States since 1990, allowing Turkish citizens to live and work in the United States based on a qualifying investment in a US business.
The E-2 visa does not have an annual cap or lottery system unlike the H-1B which makes it one of the most accessible US work visas for Turkish entrepreneurs.
To qualify, you must:
- Hold Turkish citizenship
- Make a ‘substantial’ investment in a real and operating US business (investments above $100,000 tend to have the highest approval rates)
- Own at least 50% of the business or hold operational control
- Be coming to the US to actively develop and direct the enterprise
- Demonstrate that the business has the potential to contribute economically beyond merely supporting you and your family
The E-2 visa is typically approved for up to five years and can be renewed indefinitely as long as the business remains operational. Your spouse and unmarried children under 21 can accompany you under E-2 dependent status.
| Note: Blitzer Finance provides CFO, accounting, and financial advisory services. E-2 visa applications require the assistance of a licensed immigration attorney. We work closely with experienced immigration counsel and can make introductions as part of our service to clients pursuing this path. |
Common Mistakes Turkish Investors Make
Here are the most costly and most preventable errors we see:
- Choosing the wrong entity type for their goals. A founder who plans to raise venture capital in 18 months should not form an LLC today — the conversion process is costly and complicated. Get the structure right from the beginning.
- Ignoring Form 5472. A $25,000 penalty for a missed information return is a painful and entirely avoidable start to your US business journey.
- Mixing personal and business finances. Commingling funds pierces the corporate veil — meaning you lose the liability protection that was the whole point of forming a US entity.
- Not getting a proper Operating Agreement. A one-page generic template is not adequate when you have multiple partners or plan to bring in investors.
- Waiting too long to get an EIN. The process for non-residents takes longer than most people expect. Start the EIN application on the same day you file your formation documents.
- Underestimating the US-Türkiye tax treaty. Proper treaty planning can significantly reduce your effective tax burden — but only if it is proactively applied.
How Blitzer Finance Helps Turkish Investors
At Blitzer Finance, we have built our practice specifically around foreign-owned US businesses — with a particular depth of experience serving Turkish entrepreneurs and investors.
We help with every stage of the journey:
- Entity formation advisory LLC vs C-Corp, state selection, structure for E-2 visa preparation
- EIN application support managing IRS Form SS-4 for non-residents
- Accounting and bookkeeping investor ready financials from day one
- Tax compliance Form 5472, Form 1120 pro-forma, Form 1065, and all federal and state returns
- CFO advisory fractional CFO services for scaling businesses and Series funding
- E-2 visa financial support business plans and accounting records for immigration counsel
Ready to Start?
If you are a Turkish entrepreneur, investor, or business owner considering a US incorporation, we invite you to schedule a free 30-minute consultation with our team.
blitzerfinance.com
This article is for informational purposes only and does not constitute legal or tax advice. Please consult a licensed tax professional and immigration attorney for advice specific to your circumstances.
Tags: US incorporation, LLC for non-residents, Turkish investors, Delaware LLC, Wyoming LLC, EIN for foreigners, E-2 visa Türkiye, Form 5472, foreign-owned US business, SelectUSA, FDI, Blitzer Finance
