What is the name of your state? California
I am planning to open up a 2 member LLC where one of the members is a foreigner. He is here on an extended visa but not allowed to work. The idea is that he will put in capital but not receive any income from the LLC.
QUESTION: Is this legal? I know other people in the same situation, for ex. a teacher who was teaching in the US but requested that his pay be donated to a charity, for the reason that he was on a visa that did not allow him to work in the US. From what I understand it is not about "working" per se, but about receiving income.
In this situation I assume that the only choice is to elect to be taxed as a C Corp? Can we elect taxation as a Partnership if the Foreign member does not take any income? The LLC's line of business is Media Production with focus on Internet based radio. We do not expect to keep a lot of the profit in the company except for the first year or so, when we would need to buy inventory.
Also, because from what I understand the method of taxation stays with the company for 5 years: if we elect to be taxed as a C Corp., ibut later find out that it does no longer apply and we would want to be taxed as a Partnership, can we just close the company & open up another? What are the downs of doing this?
Thanks a lot!
Danielle
I am planning to open up a 2 member LLC where one of the members is a foreigner. He is here on an extended visa but not allowed to work. The idea is that he will put in capital but not receive any income from the LLC.
QUESTION: Is this legal? I know other people in the same situation, for ex. a teacher who was teaching in the US but requested that his pay be donated to a charity, for the reason that he was on a visa that did not allow him to work in the US. From what I understand it is not about "working" per se, but about receiving income.
In this situation I assume that the only choice is to elect to be taxed as a C Corp? Can we elect taxation as a Partnership if the Foreign member does not take any income? The LLC's line of business is Media Production with focus on Internet based radio. We do not expect to keep a lot of the profit in the company except for the first year or so, when we would need to buy inventory.
Also, because from what I understand the method of taxation stays with the company for 5 years: if we elect to be taxed as a C Corp., ibut later find out that it does no longer apply and we would want to be taxed as a Partnership, can we just close the company & open up another? What are the downs of doing this?
Thanks a lot!
Danielle