There is no restriction on an Non Resident becoming a director or share holder of a U.S Corporation, however the only exception to that is an S Corporation. The subchapter “S” Corporation is a variation of the “C” Corporation and under a different IRS Tax Code. The “S” Corporation is allowed the flow-through taxation treatment similar to that of a partnership and sole proprietorship. Double taxation is avoided by its owners/shareholders. The limitations however are that:
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Non-resident aliens cannot be shareholders.
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Ownership is limited to 100 stockholders.
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Owners cannot be corporations, partnerships, pension plans, charitable organizations, certain trust.
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To maintain subchapter “S” Corporation status and therefore there is a requirement for strict compliance with stringent rules.
So, in essence the option for Non Residents, Non American Citizens is to incorporate their business as a C Corporation or as a Limited Liability Corporation (LLC).
Incorporating a company in the U.S not only helps you to protect your assets, but also de-risk and overcome some of your Work Visa (H1, L1, F1 Opt) challenges. It also allows you to plan your tax and save some money from going to Uncle Sam! Incorporate your investment business, Day care center, Consulting business, REIT, Non profit activities today, and realize the asset protection, Saving in tax dollars today! ___________________________________________________________________________
Author of this post, is the President & CEO of ICS, Inc. www.mybizfiler.com.
Any U.S. tax or other forms of advice contained in the body of this page was not intended or written to be used, and cannot be used, by the recipient as a guidance note, or for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or other Federal, State or Local tax law provisions. If you need Taxation & Financial services, OR Professional guidance in interpreting federal or state laws, kindly contact a professional from ICS Inc.
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