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Can an LLC taxed as an s-Corp have members that are not us citizens/us residents?

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Level 2

I have found documentation than an LLC can have non-US resident members but its also documented that non-US residents can not be members of an s-Corp.

What are the rules for an LLC taxed as an s-Corp?

Appreciate any insight that an be provided.  

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4 Replies 4
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Level 14

LLC taxed as an S Corp has to follow S Corp rules . For income tax purposes it is an S Corp.


ex-AllStar
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Level 2

thanks - that's what I thought but their previous CPA filed to have the LLC taxed as an s-Corp with 4 of the 7 members as non residents. 

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Level 12

@cherylgolich wrote:

thanks - that's what I thought but their previous CPA filed to have the LLC taxed as an s-Corp with 4 of the 7 members as non residents. 


Which pretty much voids the S-election, so it is now taxed as a C-corporation.

I think there is a provision to keep the S-election if immediate action is taken to correct the situation, but seeing as how 4/7ths of the members are affected, that doesn't seem like it will work for your clients.

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Level 14

They can live outside the US, but they cannot be Nonresident Aliens. They must be US citizens or Resident Aliens.

"nonresidents" doesn't tell us which you mean.


ex-AllStar