Hello and thank you for using Just Answer,All of an S corporation's shareholders must be U.S. citizens or resident aliens of the U.S. Foreign individuals and foreign businesses cannot be shareholders of an S corporation. If you have met the substantial presence test and are a resident alien of the US you can be a shareholder in an S corp.This is exactly from the IRS:
To qualify for S corporation status, the corporation must meet the following requirements:
Note the rule says Non-resident Alien
As a resident alien you will be taxed just like a Green Card holder, on your worldwide income for US purposes.
When did you first come to the US?
I came to usa in 2006
on F1 Visa and got my H1 in oct 2008
Ok so since 2008 you have been here?
since then I have out of country only 2-3 times for just a month vacation .. Yes I am working in usa since then..
Then you have pretty much been a resident alien since at least 2009. Hav eyou been filing US 1040 tax return or 1040NR?
But I worked in different states almost each year.. there were situations when i was in 2-3 different states in a single year so even last year i was in 2 different states as I will be moving for projects.. so am not 100% sure if i filed as a resident alien.. even though I am..
will that be a problem..
The states are not relevant for federal residency rules. Yes that will be a problem.
You need to look back at those returns.
You need to see what you filed.
ok I will look in to it today..
As far as your original question, your S corp status is fine.
so company can be on scorp if i havent filed for 1040 NR correct ?
You are not a nonresident alien and have not been one for some time.
ok thanks last few questions robin..
You are most welcome
If you filed incorrectly please amend those
what is my status robin if I am party year resident.assume i worked 6 months in california and 6 months in texas. am i still considered a resident alien
For federal yes, we are the United States of America but for the states you are part year for each.
Texas has no personal income tax
am looking at one of my tax returns and I filed as part year resident for each state i worked ... chicago, texas, NY ,NJ and now california .. yes i worked in all of these states from past 4 years
so now that i filed as a part year resident can the company be still on s corp .. please suggest
Good for the states so on teh Federal you filed a 1040 form or does it say 1040NR at top
yes looks like it..
You have been compliant then and no worries on the tax issue
oh great, thanks for your suggestion robin, its really helpful. and one last question is if I can add a GC holder as a share holder for my company..
Yes, they are resident aliens too!
Thanks a lot for all your answers..
Your positive rating is always thanks enough.
thank u Robin :)