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E2 visa holder and S Corp pros & cons

E2 visa holder and S Corp pros & cons

Old Sep 30th 2012, 4:59 pm
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Default E2 visa holder and S Corp pros & cons

I have an E2 visa and a share in an LLC. I'm taxed in the US as a partner. May we change the tax entity to an 'S' Corp, and, if so, what would be the pros and cons for me? One obvious pro would be that I would be taxed as an employee and save tax.
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Old Oct 1st 2012, 6:45 pm
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Default Re: E2 visa holder and S Corp pros & cons

http://mashable.com/2012/02/17/small...ncporporation/

I think that explains the main differences to think about.

Also if your E2 is linked to an LLC (dont 100% quote me) but I think you will have to go home and re-apply for a new E2 visa as the LLC will no longer be your business.

Cx
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Old Oct 2nd 2012, 4:47 pm
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Default Re: E2 visa holder and S Corp pros & cons

S-corp can be used by anyone who is a tax resident of the US, so being E-2 doesn't necessarily matter. Although it would get awkward if you left but still owned part of the business.

Changing the status from a partnership to an S-corp shouldn't necessarily matter for immigration purposes, provided it is the same business, depends on how much you are actually changing the structure, there are ownership requirements to qualify for E-2.

But I don't quite get the "taxed as an employee" bit, you are taxed as an employee if you use a C-corp as well, do you mean you can do it all on a 1040?
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Old Oct 2nd 2012, 7:31 pm
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Default Re: E2 visa holder and S Corp pros & cons

Originally Posted by raasay View Post
I have an E2 visa and a share in an LLC. I'm taxed in the US as a partner. May we change the tax entity to an 'S' Corp, and, if so, what would be the pros and cons for me? One obvious pro would be that I would be taxed as an employee and save tax.
Thanks and best wishes
I'm not sure I understand the question. An LLC can either be taxed as an 'S' or a 'C' corp.

Either way tax has to be paid, but for an LLC as a 'C' corp, the company files a separate tax return to the owner who pays taxes on their salary as an employee (assuming they take a salary). For an LLC as an 'S' corp, the owner files a tax return which includes the company's profit/loss and the owner is responsible for the company tax through their tax return.
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Old Oct 6th 2012, 4:27 pm
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Default Re: E2 visa holder and S Corp pros & cons

Thanks for your replies - especially Charma1ne. The link was very helpful, including all the extra procedures as an S Corp. Thanks too for the warning about the possible impact on my E2 visa. I'll consult my lawyer in London about that.

Although I currently have a 50% share in an LLC and my partner and I are taxed as a partnership, my accountant says that if we are an S Corp one or both of us could be an employee of the Corp and would pay less tax. However, I certainly wouldn't want to jeopardise my visa status.
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Old Oct 6th 2012, 4:29 pm
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Default Re: E2 visa holder and S Corp pros & cons

You're more than welcome best to check. Its hard enough to get to America I would be interested to hear your lawyers thoughts so please let me know

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