Foreigner and forming a business

[chikenlittle]

can a foreigner on an E-1 visa create an LLC company here in the US? or what corporation type would you recommend? my line of work is in writing (intellectual property). thanks!

 

[army judge]

This isn't a good time to sink your money into a venture in the US.

 

[FlaRiptide]

Should you wish to not listen to Army's superior advise, your next best option is to consult with a US tax accountant/attorney. Much more detail would be required to give you the best advise.

I can tell you that a S corporation would not be an available option. Nonresident aliens may not be shareholders. Thus, an LLC, being similar in nature to an S Corp may be the way to go.

 

[chikenlittle]

I was able to confirm that forming a company (LLC) in the U.S. even if you are not a U.S. citizen or resident is possible.

I was told that owning or being a part of a company is not necessarily the same as having the authorization to do business. Does that mean that a US citizen/resident should be the one to run my newly-formed LLC for me?

Please point me to the right direction. Thanks!

 

[army judge]

I was able to confirm that forming a company (LLC) in the U.S. even if you are not a U.S. citizen or resident is possible.

I was told that owning or being a part of a company is not necessarily the same as having the authorization to do business. Does that mean that a US citizen/resident should be the one to run my newly-formed LLC for me?

Please point me to the right direction. Thanks!

Anyone you choose can run your business. You could get a special visa, if your business exceeds a certain value. You should address your queries to an immigration attorney or the US immigration authorities, who masquerade in this day and age as US Homeland Security. The US Department of State might also be of minimal assistance.

 

[chikenlittle]

what i was told is that there is a difference between permission to do business and authority to manage a business.
a foreigner can apply for an LLC here in the US. but he/she might now be authorized to manage it.

can someone explain that further please?

 

[lawinc2]

Local Partners and Joint Ventures

In many countries, not only in Asia, the only way to own a business is by having a local partner or partners, and making it a 'joint venture'. Apart from your own personal relationship with a local, you will quickly discover that there are local 'businessmen', with unsuccessful and usually under-capitalised businesses, some of whom are going to be plain con-men. These people (they could also be fellow ex-pats – possibly even less trustworthy than the 'natives'!) see a foreigner who is looking for an opportunity as 'fair game'. They will go to extraordinary lengths to portray themselves as having important connections with the right people in government (often claiming to be a related to a high-ranking official) who can pull all the necessary strings as far as licenses, permits etc are concerned, with promises of great mutual benefits if you go into business together. Your new potential partners may also be introduced to you by your wife or other friend.