Can anyone invest in an S Corp?
Say foreign investors or family?
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Listen to the audio
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In this audio snippet, you'll hear about:
- A foreign shareholder cannot invest in S Corp. If they do, it can no longer be an S Corp
- For federal tax purposes, there is not an age restriction. For state purposes there may be an age limit to be an officer of a corporation.
Audio Transcript
Travis:
Can anyone invest in an S–Corp?
Yosef:
Should one invest in an S–Corp?
Travis:
Can anyone invest in an S–Corp? Say, foreign investors or family or...
Yosef:
No. A foreign shareholder, a non–US resident cannot. Once they invest
in an S–Corporation it can no longer be an S–Corporation.
Travis:
Then it must be reframed as a C–Corporation?
Yosef:
That is correct.
Travis:
But anyone that is a resident, a permanent resident of the United States can invest in an S–Corp?
Yosef:
That is correct.
Travis:
What about underage? Is there an age limit for that?
Yosef:
I do not believe that there is, for federal tax purposes, an age for
investing in a corporation. I do believe that for state purposes, to be
an officer of the corporation there may be some regulation. You'll have
to check with your individual state to get the regs to being an officer
in a corporation.
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