TN visa holder owning business ( Not working)

[anandan]

Can a TN & TD visa holder own a business / an LLC company in USA? I intend to hire US citizens for work. Thank you

[Christopher G. Rizzo, Esq]

No. If you did you would not be maintaining your TN status, and its also unauthorized employment. Big troubles if you do this.

[Steven]

Well, you can own a US corporation, provided that's not what you're employed doing. Which I'm guessing is not what you're thinking of doing.

Same as being a shareholder essentially, e.g. if you bought stock in IBM today. If you're a director you can act as a director of a US corporation regardless of where you are or what citizenship you have (unless of course you get paid for it while doing it in the US, then you need status because you're employed in the US at that point). And then you can have an entirely separate job doing something else which is not connected to that corp.

Not sure if any of that helps you though. Think you need an E type visa.

[anandan]

Steve,
Thanks for your post. I will not be employed by the LLC company that I intend to start or take any salary while in TN status. Can I do it?

[Steven]

If you're not employed in the US by it or receiving payment from it in the US (except a dividend) then I can't see why not. Essentially you're just a shareholder. And I can't see why you couldn't be a director if you receive no renumeration in the US. Plenty of US corporations with celebrity foreign directors on the board for show.

Like I said, there's no real difference between that and going to a stockbroker and buying some stock in a corporation.

There may be catches in the corporation law because you're a non-resident director and the corporation is essentially foreign-owned, which may mean you have to pay higher corporation taxes or form your corporation in a certain way. For example you could not use an S-corporation which is how most small corporations in the US are formed. This means you have to use one of the more conventional forms of corporation. Have a read of this: http://www.window.state.tx.us/taxes/ these are the State taxes on corporations.

Federal taxes on conventional corporations in the US are higher than they are in Canada, and significantly higher than they are on CCPCs.

So yes, possible, but tricky and you will almost certainly pay higher taxes than an American would.