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Old 04-20-2013, 02:13 AM
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Post Can I incorporate a business?

Can I incorporate a business, if I am on a work permit(L1)



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Old 04-20-2013, 05:58 AM
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Can I incorporate a business, if I am on a work permit(L1)”=================>I assume that you are a non resident alien, NOT a US resident for tax purposes, then, generally, there are no restrictions on foreign ownership of a company formed in the US. It is necessary to understand that you must register not in the country itself but in one of the states and according to the state legislation. The procedure for a foreign citizen to form a company in theUS is the same as for a US resident. It is not necessary to be a US citizen or to have a green card to own a corporation or limited LLC formed in the US. HOWEVER, a foreign citizen may be a corporate officer and/or director, but may not work in the US or receive a salary or compensation for services provided in the US unless the foreign citizen has a work permit (either a green card or a special visa) issued by the US. Some work permits allow a foreign citizen to work only for a sponsoring employer. Such work permits generally do not enable a foreign citizen to also work for a new, unrelated company formed by the foreign citizen. The foreign citizen would need to obtain a separate work permit to work for the new company. You can own a business but unless you have a work visa, you are not allowed to work for your company in the US . In the case of an S corp, a resident alien/ A foreign citizen being a US resident for tax purposes, may be a shareholder of an S corp. The regulations only prohibit non-resident aliens from being shareholders. however, you must be careful. If that shareholder loses permanent resident status/ status to be treated as a US resident for tax purposes, , then the S corp election is revoked at that moment. So UNLESS you are a US resident for tax purposes, you can’t incorporate an S corp.



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Old 04-23-2013, 01:45 AM
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Originally Posted by Wnhough View Post
Can I incorporate a business, if I am on a work permit(L1)”=================>I assume that you are a non resident alien, NOT a US resident for tax purposes, then, generally, there are no restrictions on foreign ownership of a company formed in the US. It is necessary to understand that you must register not in the country itself but in one of the states and according to the state legislation. The procedure for a foreign citizen to form a company in theUS is the same as for a US resident. It is not necessary to be a US citizen or to have a green card to own a corporation or limited LLC formed in the US. HOWEVER, a foreign citizen may be a corporate officer and/or director, but may not work in the US or receive a salary or compensation for services provided in the US unless the foreign citizen has a work permit (either a green card or a special visa) issued by the US. Some work permits allow a foreign citizen to work only for a sponsoring employer. Such work permits generally do not enable a foreign citizen to also work for a new, unrelated company formed by the foreign citizen. The foreign citizen would need to obtain a separate work permit to work for the new company. You can own a business but unless you have a work visa, you are not allowed to work for your company in the US . In the case of an S corp, a resident alien/ A foreign citizen being a US resident for tax purposes, may be a shareholder of an S corp. The regulations only prohibit non-resident aliens from being shareholders. however, you must be careful. If that shareholder loses permanent resident status/ status to be treated as a US resident for tax purposes, , then the S corp election is revoked at that moment. So UNLESS you are a US resident for tax purposes, you can’t incorporate an S corp.
Wnhough thanks for quick response....



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