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Forming an LLC as a non-US citizen

On Behalf of | Mar 28, 2023 | Business Law |

For non-citizens, forming an LLC in the United States can be an excellent way to purchase property. However, there are certain limitations to consider before taking the plunge.

See below for some basic information about forming an LLC to purchase property as a non-citizen. The U.S. has relatively friendly laws for business formation, even for non-citizens.

Residency is not always required

It is crucial to understand that there is no citizenship requirement for operating a business in the U.S. Non-citizens can form a limited liability company (LLC) or a C corporation, but not an S corporation. Additionally, there is no residency requirement, but non-citizens must have a U.S. address or appoint an agent to perform specific tasks. According to New York Legislation, an LLC organizer does not have to be a member of the company they form.

Non-citizens have similar requirements

Non-citizens must also choose a unique business name and file Articles of Organization with the secretary of state. They must obtain a taxpayer identification number (TIN) from the IRS and pick a registered agent or agent service. It is vital to open a savings and checking account for the LLC and keep personal funds separate from the LLC’s accounts.

While non-citizens do not necessarily have to work from the U.S., they must obtain the proper visa or green card if they wish to do so. Once they get legal status, non-citizens can operate an LLC in the U.S. similarly to a citizen, with a few exceptions.

Forming an LLC as a non-citizen in the U.S. requires careful consideration and attention to detail. However, it can be worthwhile for those purchasing property in the country. By following the steps outlined above, non-citizens can successfully navigate the process of forming an LLC and achieve their real estate goals.