Two individuals would like to start a business as a partnership/LLC. One of the potential partners is a non resident without a greencard (in the process of getting one). Can they form an LLC prior to the non resident getting a greencard? Are there any particular issues I should be on the lookout for?
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The non resident partner...
Needs an ITIN but if he gets a green card, he will be a resident alien and will get a SS#.
Once he is a resident alien, he will be taxed in the US on world wide income and can take a treaty exemption for some of the taxes he pays to his country of citizenship.
An ITIN does not give the non resident partner the right to work in the US, so if he files with the ITIN, this partnership must be passive to him...I don't know if this is a passive or active partnership so you will have to decide what level of involvement the partner wants and needs
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