LLC co-owned by non-citizen/resident and collecting profit
May 2nd 2007, 12:39 am
#1
Guest
Posts: n/a
LLC co-owned by non-citizen/resident and collecting profit
Hi,
I've got a question about establishing an LLC with 2 partners, one of
which is not a U.S. citizen nor resident. From what I understand,
nothing prevents a non-resident/citizen from being an equal partner in
a LLC. The limitation is that the non-resident/citizen partner cannot
work for that LLC, cannot get a regular pay and cannot, of course,
sponsor himself for a work visa (H1B).
Is this all correct so far?
The part that I'd like to check is this:
According to one corporate attorney with (some) knowledge of the U.S.
immigration law, even though the non-citizen/resident partner cannot
work and cannot get paid a regular wage, CAN collect his share of
profit from the business. For example, if at the end of the year the
business has $10,000 of profit, each partner would be able to collect
$5,000, including the non-citizen/resident.
This sounds too good to be true. Can anyone confirm this?
Thank you!
I've got a question about establishing an LLC with 2 partners, one of
which is not a U.S. citizen nor resident. From what I understand,
nothing prevents a non-resident/citizen from being an equal partner in
a LLC. The limitation is that the non-resident/citizen partner cannot
work for that LLC, cannot get a regular pay and cannot, of course,
sponsor himself for a work visa (H1B).
Is this all correct so far?
The part that I'd like to check is this:
According to one corporate attorney with (some) knowledge of the U.S.
immigration law, even though the non-citizen/resident partner cannot
work and cannot get paid a regular wage, CAN collect his share of
profit from the business. For example, if at the end of the year the
business has $10,000 of profit, each partner would be able to collect
$5,000, including the non-citizen/resident.
This sounds too good to be true. Can anyone confirm this?
Thank you!
May 2nd 2007, 1:22 am
#2
Guest
Posts: n/a
Re: LLC co-owned by non-citizen/resident and collecting profit
On May 1, 5:39 pm, OtisUsenet <[email protected]> wrote:
>
> I've got a question about establishing an LLC with 2 partners, one of
> which is not a U.S. citizen nor resident. From what I understand,
> nothing prevents a non-resident/citizen from being an equal partner in
> a LLC. The limitation is that the non-resident/citizen partner cannot
> work for that LLC, cannot get a regular pay and cannot, of course,
> sponsor himself for a work visa (H1B).
>
> Is this all correct so far?
I can't see any problem with the non-resident working for the company
or getting paid - why would there be?
>
> I've got a question about establishing an LLC with 2 partners, one of
> which is not a U.S. citizen nor resident. From what I understand,
> nothing prevents a non-resident/citizen from being an equal partner in
> a LLC. The limitation is that the non-resident/citizen partner cannot
> work for that LLC, cannot get a regular pay and cannot, of course,
> sponsor himself for a work visa (H1B).
>
> Is this all correct so far?
I can't see any problem with the non-resident working for the company
or getting paid - why would there be?
May 2nd 2007, 1:24 am
#3
BE Enthusiast
Joined: Nov 2006
Location: Oregon
Posts: 612
Re: LLC co-owned by non-citizen/resident and collecting profit
Hi,
I've got a question about establishing an LLC with 2 partners, one of
which is not a U.S. citizen nor resident. From what I understand,
nothing prevents a non-resident/citizen from being an equal partner in
a LLC. The limitation is that the non-resident/citizen partner cannot
work for that LLC, cannot get a regular pay and cannot, of course,
sponsor himself for a work visa (H1B).
Is this all correct so far?
The part that I'd like to check is this:
According to one corporate attorney with (some) knowledge of the U.S.
immigration law, even though the non-citizen/resident partner cannot
work and cannot get paid a regular wage, CAN collect his share of
profit from the business. For example, if at the end of the year the
business has $10,000 of profit, each partner would be able to collect
$5,000, including the non-citizen/resident.
This sounds too good to be true. Can anyone confirm this?
Thank you!
I've got a question about establishing an LLC with 2 partners, one of
which is not a U.S. citizen nor resident. From what I understand,
nothing prevents a non-resident/citizen from being an equal partner in
a LLC. The limitation is that the non-resident/citizen partner cannot
work for that LLC, cannot get a regular pay and cannot, of course,
sponsor himself for a work visa (H1B).
Is this all correct so far?
The part that I'd like to check is this:
According to one corporate attorney with (some) knowledge of the U.S.
immigration law, even though the non-citizen/resident partner cannot
work and cannot get paid a regular wage, CAN collect his share of
profit from the business. For example, if at the end of the year the
business has $10,000 of profit, each partner would be able to collect
$5,000, including the non-citizen/resident.
This sounds too good to be true. Can anyone confirm this?
Thank you!
http://www.usvisanews.com/faq/business.shtml
May 4th 2007, 10:04 pm
#4
Guest
Posts: n/a
Re: LLC co-owned by non-citizen/resident and collecting profit
> I've got a question about establishing an LLC with 2 partners, one of
> which is not a U.S. citizen nor resident. From what I understand,
> nothing prevents a non-resident/citizen from being an equal partner in
> a LLC. The limitation is that the non-resident/citizen partner cannot
> work for that LLC, cannot get a regular pay and cannot, of course,
> sponsor himself for a work visa (H1B).
The non-resident can certainly work for the LLC and be paid by it
outside the country, provided of course the LLC is properly registered
to do business in the state/country where he/she lives. In the U.S.,
it depends what kind of visa he got into the U.S. as to whether he
actively work for the company. For employer sponsorship, business
owners are generally ineligible for labor certification to work for
their own company, because the position isn't really available to U.S.
workers.
L1 visa is usually what people try to do with this kind of structure,
and this is how L1 fraud typically happens (the business and job offer
are not bona fide). Treaty trader/investor E visas are sometimes also
possible.
If outside the U.S., he/she will need to file a non-resident income
tax return to pay tax on his share of partnership earnings (if LLC is
a pass-through) or dividends received if otherwise if U.S. source
income.
> which is not a U.S. citizen nor resident. From what I understand,
> nothing prevents a non-resident/citizen from being an equal partner in
> a LLC. The limitation is that the non-resident/citizen partner cannot
> work for that LLC, cannot get a regular pay and cannot, of course,
> sponsor himself for a work visa (H1B).
The non-resident can certainly work for the LLC and be paid by it
outside the country, provided of course the LLC is properly registered
to do business in the state/country where he/she lives. In the U.S.,
it depends what kind of visa he got into the U.S. as to whether he
actively work for the company. For employer sponsorship, business
owners are generally ineligible for labor certification to work for
their own company, because the position isn't really available to U.S.
workers.
L1 visa is usually what people try to do with this kind of structure,
and this is how L1 fraud typically happens (the business and job offer
are not bona fide). Treaty trader/investor E visas are sometimes also
possible.
If outside the U.S., he/she will need to file a non-resident income
tax return to pay tax on his share of partnership earnings (if LLC is
a pass-through) or dividends received if otherwise if U.S. source
income.
