Legal Question in Business Law in California

Re: non-resident, alien member limit of LLC

As far as I know, there is no restriction in California law on how many non-resident aliens may be members of a California LLC. Indeed, the ability to have non-resident alien owners is one of the several reasons to favor an LLC over an S corporation. (In other cases, however, various factors may point to an S corporation or other form of business organization as preferable.)

Please note, however, that the non-resident alien members very likely will be subject to back-up withholding or other IRS requirements designed to insure collection of taxes on their share of the LLC's income.

Anyone who is promoting a business that will accept money from non-promoters (i.e., investors) is strongly advised to have competent legal advice at all stages to protect, among other things, against securities law violations.

Re: non-resident, alien member limit of LLC

No, there is no such limitation. My firm has special expertise in the formation, taxation and maintenance of LLC's, and we are located near you (in San Francisco).

D. Alexander Floum is an experienced attorney and a law school professor.

The Schinner Law Group is a full-service law firm, providing assistance in business, corporate, tax, litigation, contracts, intellectual property and related areas of law.

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. Pursuant to California Rules of Professional Conduct rule 1-400(d)(4), this communication is intended as a solicitation for legal services.