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It is my understanding that a S-Corp can not have a

Hello! It is my understanding...
Hello! It is my understanding that a S-Corp can not have a non-resident alien shareholder. Is this correct? Second, regardless of the previous answer can a SMLLC (the single member being non-resident alien) elect S-Corp taxation?
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Answered in 9 minutes by:
3/20/2018
Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 38,820
Experience: 30 years experience representing clients.
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1. Correct. Under United States tax law, an S corporation generally cannot have a “nonresident alien as a shareholder.” IRC § 1361(b)(1)(C).

2. The owner of an SMLLC can elect to have the business taxed as either a traditional C corporation or as an S corporation.

As the owner of an SMLLC classified as an S corporation you are not considered a self-employed individual and are not subject to federal self employment tax.

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Loren
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Category: Legal
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