Legal Question in Business Law in New York

The answer is yes. Foreign nationals and even entities are permitted to be equity holders in US business entities, provided they are not on any foreign asset control black list (such as terrorist organizations, for example) and provided they are not investing in certain industries that by law must be exclusively or largely owned by US citizens. You may have to provide your Social Security number, however, to obtain an Employer Identification Number from the IRS. In addition, foreign entities or individuals may be subject to higher taxation than US nationals.

My colleague is correct. Please also keep in mind that it is vital to have an operating agreement between the members not withstanding the fact that some of the members are foreign. An operating agreement is mandatory under New York law and it protects the rights of all members and ensures that all members familiar with their responsibilities as well.

Another important consideration to a foreign national would be potential visa considerations. If a future visa (visitor or work) is contemplated then there are certain factors that need to be addressed when forming the company.

My practice is focused on startups and I would be happy to answer any additional questions you may have. Feel free to contact my office at your earliest convenience.

Roman R. Fichman, Esq.

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