How to Start an Import-Export Business in the USA: Company, Customs and Your First Shipment

Starting an import or export business with the United States involves more than forming a company. You also deal with customs, product rules, shipping and tax. This guide gives the order of steps for a founder, including one based in India, who wants to import goods into the US or export goods from it. It covers the company, the paperwork, the main rules and the mistakes that delay shipments. It is general information, so check the official sites for your product.

Key takeaways

• Choose import or export first: the paperwork and the agencies are different.
• A US company with an EIN makes banking, customs and contracts easier.
• Most importers use a licensed customs broker.
• Some goods are restricted or need approval from a US agency.
• A founder in India also needs the Indian import-export registration for goods leaving or entering India.

Step 1: Decide what you will trade

Pick the product, the supplier and the customer before anything else. Check whether the product is restricted, taxed at a high rate or covered by rules from a US agency, such as food, medicines, cosmetics, electronics, toys and plants. Some goods cannot be imported or exported to certain countries.

Step 2: Form the company

A US LLC is the usual choice for a small trading business. It can be formed online from India. See how to form a US LLC without visiting the US or start with LLC formation for non-residents. You will need a registered agent in the state, see our registered agent service.

Step 3: Get the EIN

Customs, banks and suppliers ask for the company's tax number. See our EIN service and the IRS guidance at irs.gov.

Step 4: If you are importing into the US

• An importer of record. Someone must be responsible for the import, and it is normally your company. It needs an identity with US Customs and Border Protection (CBP).
• A customs bond. Often required for goods above a certain value, and usually bought through a customs broker.
• A customs broker. A licensed broker files the entry, classifies the goods and calculates duty. Most small importers use one.
• The product code. Goods are classified under the Harmonized Tariff Schedule, which decides the duty rate.
• Other agencies. Food, drugs, cosmetics, electronics and some other goods are also checked by other US agencies.

CBP publishes the rules at cbp.gov.

Step 5: If you are exporting from the US

Most exports need no licence, but some goods and some destinations are controlled. You must classify the goods, check the destination and the buyer against government lists, and in some cases file the shipment electronically with the government. The US Department of Commerce and its trade site, trade.gov, explain the basics for exporters.

Step 6: If you are based in India

Goods entering or leaving India follow India's rules too. An Import Export Code, issued by India's trade authority, is generally needed to import or export goods from India. Money sent abroad for the business follows India's foreign exchange rules, and a resident reports foreign companies and assets in the Indian return. Ask a chartered accountant what applies. See the Reserve Bank of India at rbi.org.in and our guide to registering a company in the USA from India.

Step 7: Bank accounts, payments and contracts

Open a US business account in the company's name, and agree payment terms with suppliers and buyers in writing: price, currency, delivery terms, who pays duty and what happens if goods are damaged. See US business bank account.

Step 8: Tax and yearly filings

A foreign-owned single-member LLC generally files Form 5472 every year. A company that trades goods in the US may also have US business tax and state sales tax to deal with. Speak to a US tax adviser. See US LLC tax filing and annual reports.

Common mistakes

• Ordering stock before checking if the product is allowed.
• Skipping a customs broker on a first shipment.
• Wrong product codes, which means the wrong duty.
• No written contract with the supplier.
• Forgetting the India-side registration and money rules.

A simple first shipment plan

1. Order a small test quantity, not a full container.
2. Agree the price, delivery terms and who pays duty in writing with the supplier.
3. Ask a customs broker to classify the goods and give you a duty estimate before you ship.
4. Check that the goods meet the US labelling and safety rules for your product.
5. Track the shipment, and keep every invoice and customs document for your records and your tax filing.

A small first shipment shows you the real costs and delays before you commit more money.

Frequently asked questions

Do I need a US company to import goods into the US?

Not always, but a US company with an EIN makes customs, banking and contracts easier. A foreign person can act as importer of record if the rules are met, which is more complicated.

Do I need a licence to import or export?

Most goods need none, but regulated goods do. Check the product with the relevant agency before you buy.

Can I run an import-export business from India?

Yes, through a US company and with the Indian registrations you need. Money and tax rules in both countries apply.

Which state should I form the company in?

Any state works. Compare costs on our LLC filing fees by state page, and consider a state near your port or warehouse.

How long does it take to start?

Forming the company takes days to weeks. Customs and product approvals can take longer, so plan the timeline around your product.

Next steps

Start with the company: register an LLC in the USA as a non-resident. See also how to open an e-commerce business in the USA from India. This is general information, not legal, customs or tax advice.