Form with which a corporation may resolve to alter its corporate status top that of a subchapter (S) corporation.
S Corporation With Foreign Shareholder In Sacramento
State:
Multi-State
County:
Sacramento
Control #:
US-0046-CR
Format:
Word;
Rich Text
Instant download
Description
Free preview
Form popularity
FAQ
To form an S Corp in California, you must file Form 2553 (Election by a Small Business Corporation) with the IRS and then complete additional requirements with the state of California, including filing articles of incorporation, obtaining licenses and permits, and appointing directors.
If you're not a citizen, you must qualify as a resident alien to own a stake in an S Corp. Resident aliens are those who have moved to the United States and have residency but aren't citizens. Of the below, only permanent residents can own an S Corp.
Similarly, all the members of the U.S. corporation's Board of Directors and all its officers can, if so desired, be non-U.S. nationals and U.S. non-residents. Most states require that all companies formed in the state have a registered agent in the state (more about registered agents can be found here).
Any foreign individual or company can own a C-corp in the US. It is not exclusively for US residents. Ownership in a C-corp is given out by offering company's stock. Ones who own this stock are the called the shareholders of the corporation.
There is no limit on the number of shareholders a corporation taxed under Subchapter C can have. Anyone can own shares, including business entities and non-U.S. citizens.
Can a foreign national start a business in the U.S. without being a resident? “Yes, You Can!” Every day, foreign nationals are setting up US businesses, from major enterprises to small shops. Accessing the US marketplace is the key to success for many businesses around the world.
Shareholders must be US citizens or residents. The business may have no more than 100 shareholders.
To start a business in the USA, you do not need legal residency or citizenship. However, if you plan to live and work in the United States (and receive wages from your business while living in the U.S.), you will require a Green Card or visa. The particular visa you need depends on your situation.
U.S. citizen can only participate in an S Corp if they are an emigre, meaning they have passed the IRS's substantial presence test or hold a green card.
Generally, there are no restrictions on foreign ownership of a company formed in the United States. The procedure for a foreign citizen to form a company in the US 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 LLC.
