Can a non-U.S. citizen own an S Corporation?

No. A foreigner cannot be an owner of an S Corporation. U.S. tax law limits ownership of an S Corporation to U.S. citizens and some categories of U.S. residents, like permanent residents who hold green cards. It also restricts the number of stockholders (100 or fewer) and the categories of entities that may own stock.

If the alien wants to set up or expand a business in the United States, the formation of an LLC (Limited Liability Company) is usually the better option. An LLC can be foreign-owned and still provide limited liability protection and flexible management arrangements.

For international businesspeople seeking to establish or expand their U.S. footprint, One IBC USA offers incorporation, entity selection, and compliance knowledge to get your company established correctly from the beginning.