E2 visa holder and S Corp pros & cons
Sep 30th 2012, 4:59 pm
#1
Just Joined
Thread Starter
Joined: Jul 2011
Posts: 23
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.
Thanks and best wishes
Thanks and best wishes
Oct 1st 2012, 6:45 pm
#2
Forum Regular
Joined: Jun 2012
Posts: 152
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
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
Oct 2nd 2012, 4:47 pm
#3
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
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?
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?
Oct 2nd 2012, 7:31 pm
#4
Rootbeeraholic
Joined: Aug 2009
Location: Houston, Tx
Posts: 2,280
Re: E2 visa holder and S Corp pros & cons
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.
Oct 6th 2012, 4:27 pm
#5
Just Joined
Thread Starter
Joined: Jul 2011
Posts: 23
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.
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.
Oct 6th 2012, 4:29 pm
#6
Forum Regular
Joined: Jun 2012
Posts: 152
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
Cx
best to check. Its hard enough to get to America I would be interested to hear your lawyers thoughts so please let me know Cx
