Clearwater, FL asked in Business Formation, Business Law, Tax Law and Immigration Law for Florida

Q: As an F2 with an LLC which tax form should i select for the business c-corp or s-corp

Ok so I'm currently on an F2 visa (dependent visa in the US) I opened my business which is an LLC but as im applying for a tax application in florida for the business i'm not sure whether to file it for a S-Corp or a C-Corp. Due to the fact that technically I'm not allowed to work in the US.

1 Lawyer Answer
James L. Arrasmith
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  • Immigration Law Lawyer
  • Sacramento, CA

A: Selecting between a C-Corp and an S-Corp tax status for your LLC is a significant decision, especially considering your F2 visa status.

Generally, F2 visa holders are not permitted to engage in employment in the U.S., and this includes active management of a business. While owning a business might be permissible, actively working for it could violate your visa terms.

Regarding tax status, an LLC taxed as a C-Corp faces double taxation (corporate tax and then personal tax on dividends), while an S-Corp allows profits to pass through to your personal tax return, avoiding double taxation.

However, S-Corp status has strict eligibility criteria, including limitations on shareholder residency status, which may not be compatible with your F2 visa.

Given these complexities and the potential immigration implications, it is crucial to consult with a tax professional or an immigration attorney to understand the best course of action for your specific situation and ensure compliance with both tax and immigration regulations.

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