Hi, I want to establish an LLC where my partner will be a Spanish Based Corporation. We will have 50% each. Can a foreign company partner up with me? What documents would we both need to show? What would be the differences of establishing the LLC in California or Nevada?
Thank you very much for your time
2 Answers from Attorneys
Yes, a foreign company may be a partner in an LLC. I would recommend that the foreign company seek international tax advice before doing so. You wouldn't need any documents other than the Articles of Organization to file with the State. You should file where you are doing business. If you file in Nevada for tax purposes, for example, but you do business in California, you will also have to register in California, which would double up your costs and administration.
I concur with my colleague. You are free to "domicile" the entity wherever you wish, but if one of the members reside in CA or if any of the business activity takes place in CA you will have to register there and will be captured by their tax regime. So there may not be any good or practical reason to form in NV.
While a non-resident is free to be a member of this entity by virtue of being so does not entitle him to visit, reside or work in the US. This is an immigration issue and you would have to explore the proper visa requirements. Further, the US Dept of Commerce requires a informational survey to be completed anytime a US entity is created holding 10% or greater foreign ownership. Assuming you do not exceed the income threshold of 30 mil per year I believe there is no other compliance required. You can look online for the form and instructions it is called BE-605.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis
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