Legal Question in Business Law in New York

Re: Can Foreigners own an LLC

Yes, two foreigners can own an LLC. Your "foreigner" status may govern what you can do with that LLC. You should consult an attorney to discuss whether that is the best corporate entity for you and whether it will achieve the goals that you are attempting to achieve.

You may give me a call at (212) 695-6400 if you would like to discuss this further.

Best regards,

Asi Kirmayer

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WARNING: This information is not intended to constitute legal advice and should not be relied upon for any purpose in lieu of consultation with appropriate legal counsel in your own jurisdiction.

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Re: Can Foreigners own an LLC

New York Limited Liability Company Act does not impose any restrictions on non-U.S. members so you should be able to organize an LLC in New York (assuming one of you is physically in the U.S. to follow up with opening a bank account and attending to other organizational formalities).

However, you should be aware that both under federal law and some state laws, foreign investors may be limited in the types of investments they are making and the types of business they are conducting in the United States.

Some of the industries that are restricted in this way are telecom, media, aviation, certain agroindustries, shipping, banking and mineral leases.

In addition foreign persons doing business in the U.S. may be affected by federal legislation targeting nationals from certain countries under the Trading with the Enemy Act, the Cuban Assets Control Regulations, the Iranian Assets Control Regulations, amongs other laws. These may restrict ownership of certain real estate. In addition, some states restrict ownership of agricultural land by foreigners.

There are also special reporting and filing requirements for some U.S.-owned businesses. Finally, the federal government may prohibit an acquisition by foreign interests of certain acquisitions of U.S. businesses or property if there is a "threat to national security."

Feel free to give me a call if you have further questions about U.S. regulation of foreign investment.

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Note that this reply has been provided for general informational purposes and is not intended to be nor relied upon as legal advice.

Re: Can Foreigners own an LLC

I concur with the previous writers, with one possible exception. You may be able to designate a local registered agent, if you are not physically located in the US. Many firms conduct their business solely to be a registered agent for foreign owners and one should be contacted if you are not physically in the US. With no implications or presumptions intended, there is some madatory documentation, besides the limitations on types of businesses permitted to be conducted by foreign nationals, to verify you are not listed on any "terrorist" list. This is particularly so if you intend to purchase real estate in the US.