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Can a Foreigner Own an S-Corp?
The short answer is yes, a “foreigner” can own an S-Corp (also known as an S-Corporation), but it depends on what type of “foreigner”.
If you look on the main S-Corporation page of the IRS website, they briefly state, “To qualify for S-Corporation status, the corporation must meet the following requirements: May not be partnerships, corporations or non-resident alien shareholders.”
This is not very helpful since not all foreigners understand what a non-resident alien is, and the “who can own S-Corp” could be expanded on.
Note: An S-Corporation owner is the same thing as an S-Corporation shareholder.
Who can own an S-Corporation (be an S-Corp shareholder)?
• A foreigner that is a non-resident alien cannot own an S-Corp. As per the IRS, a non-resident alien is an individual who is not a US citizen or a US resident alien.
• A foreigner that is a US resident can own an S-Corp. As per the IRS, a US resident alien is an individual that is not a US citizen or US national and who meets either “the green card test” or “the substantial presence test” for the calendar year.
Said another way…
Can own an S-Corp:
– US citizens
– US residents
Cannot own an S-Corp:
– non-resident aliens