Company (C Corporation, S Corporation or LLC) is a type of business entity which allows a person or persons to carry on their business without risking their personal assets, what it does it is, limits personal liability using the Corporate Veil.
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:
Non-resident aliens cannot be shareholders. Ownership is limited to 100 stockholders. Owners cannot be corporations, partnerships, pension plans, charitable organizations, certain trust. 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!
Disclaimer: ICS does not offer legal services or legal advice, but only generic information on legal subjects. ICS is not an attorney or law firm and not a substitute for an attorney or law firm
Orignal From: Did You Know That Non Residents and Non American Citizens Can Incorporate a Business in the U.s?
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