Foreign owners as partners in a US small business

January 5th, 2009
  • I know the visa regs for "employees" and others and the difference between 'work' and 'business' (at least to some tiny bit) but how do the rules change when the 'owners' or 'partners' in the firm are foreign nationals? We have a small training consultancy which is partnering with three individuals from the UK to form a new US company for the purpose of designing and delivering propietary training workshops and additional consulting services. The firm will be equally owned. Business services will be sold with payment to the new partnership. How then do the participants get paid? Is there a way to pay them directly from the new partnership? Or do they become employees at taht point? Can their current organizations (each is their own company in the UK) be paid for services if not the individual? What are irs and ins rules for this situation? My wife (the US owner) leaves for the UK Monday to continue work on product development. Any insight with appropriate links would be most appreciated. Jim


  • So then it becomes a tax issue as to how best (timing/method etc) to distribute?


  • Business owners CAN be foreign nationals. It is quite common and there is no restriction on holding stock (share interest) by foreign individuals. Distribution of profit is done by DIVIDENDS. You cannot make foreign individuals employees without proper VISA.







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