this also not legal advice or tax advice. It is my opinion on a theoretical situation and not specific to any one person.
Do not set up a sole proprietorship. Set up a C Corporation and be a shareholder. This way the company can exist in the US if you leave the country or otherwise. You can pay yourself in your home country and do dividends that way as well. You'll need to pay US withholding tax and file tax for the corporation, not yourself. You will file taxes at home.
It also makes it easier to pick the state in which it is domiciled
Why? You're not working in America, you're a an investor in a corporation on a tourist visa that has overstayed.
Also, the only way to be forgiven for a visa overstay is to get married.
Do not set up a sole proprietorship. Set up a C Corporation and be a shareholder. This way the company can exist in the US if you leave the country or otherwise. You can pay yourself in your home country and do dividends that way as well. You'll need to pay US withholding tax and file tax for the corporation, not yourself. You will file taxes at home.
It also makes it easier to pick the state in which it is domiciled
Why? You're not working in America, you're a an investor in a corporation on a tourist visa that has overstayed.
Also, the only way to be forgiven for a visa overstay is to get married.
Why do the heathen rage and the people imagine a vain thing? Psalm 2:1 KJV