Limited liability companies (LLCs) offer several advantages for entrepreneurs and investors seeking to establish a company in the United States. Personal liability protection, a seamless tax structure, and operational flexibility are some of the benefits enjoyed by LLC owners.
Does US law allow foreigners to invest in limited liabilities companies? Read on to find out.
Can Foreigners Invest in US LLC? – The Verdict
Adaptable by nature, LLCs are perfect business structures for small companies. Similar to corporations, LLCs offer limited liability to their owners, which means they are not exposed to business debts and liabilities.
However, LLCs enjoy pass-through taxation, management flexibility, and minimal requirements in terms of formalities and recordkeeping.
No US law restricts foreign nationals (either residents or non-residents) from owning a limited liability company. Foreigners can own an LLC entirely or partially, depending on the provisions set forth by the company’s Articles of Organization.
What Are the Advantages of Investing in a Florida LLC as a Foreigner?
The state of Florida is a haven for foreign entrepreneurs who want to form an LLC in the United States. Whether you are a US citizen, a resident, or a non-resident alien, companies must be registered according to the requirements of the state where they are formed.
Not only Florida offers several tax benefits for LLCs, but the costs associated with formation and management are generally less than in other jurisdictions.
It is fundamental to pay attention to the tax implications of foreign investment in Florida LLCs. When a non-US resident becomes a member of an LLC, he or she must obtain a Taxpayer Identification Number (ITIN).
If the LLC is conducting business in Florida and/or other states and generating income by providing products or services, foreign members in a US LLC must pay taxes on earnings made in the United States.
What is the Visa Required to Invest in a US LLC?
As long as the foreign member of a US LLC has properly registered for a Taxpayer Identification Number (ITIN), US law does not necessarily require a specific visa or immigration status.
Please note that it is possible to invest in an LLC registered in a US state without a visa, but this is not recommended in any case.
For passive investors who do not reside in the country or have no immigrant intent, this aspect is not an issue. However, if a foreign investor wants to actively engage in operating the LLC or performing any labor for the company, US law requires a proper visa with work authorization.
While a foreign investor can receive dividends from the income generated by the LLC, it is not possible to receive a wage or salary, as it would indicate compensation for services provided without authorization.
Depending on the foreign investor’s role in the company, an eventual relocation to the United States might be necessary. The best approach to identify the ideal solution is to consult with a well-versed business immigration attorney in Florida.
Do You Want to Invest in a US LLC as a Foreigner? – We Can Help You To Succeed
An expert legal advisor with an extensive list of successful clients, Attorney Romy B. Jurado is willing to help you as well. Immediately contact us by calling (305) 921-0976 or emailing [email protected] for an individual consultation.
