Welcome Guest. Register Now!  


For 2013 Tax Tips For Year 2013.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-20-2013, 02:13 AM
Junior Member
 
Join Date: Apr 2013
Posts: 3
Post Can I incorporate a business?

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



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-20-2013, 05:58 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-23-2013, 01:45 AM
Junior Member
 
Join Date: Apr 2013
Posts: 3
Quote:
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....



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
As part of the "Small Business Jobs Act of 2010 Tax Provisions, IRS allows Temporary exclusion of 100% of gain on certain small business stock. TaxGuru General 0 01-31-2011 06:14 PM
What would be deductible business expenses for my new retail business? frankietan Sole-Proprietorship 0 05-05-2008 07:30 PM
How can I take advantage of business losses in my unincorporated business? larry Sole-Proprietorship 1 01-24-2008 06:15 PM
what state to incorporate erod77 S-Corporation 0 01-02-2008 12:37 PM
How does one decide whether or not to incorporate? Sabby C-Corporation 1 01-23-2007 12:28 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.