A U.S. tax preparer told me to elect S corporation status for payroll savings, but I am still a nonresident alien. Is that even allowed?
I am a founder from Turkey with a New Mexico LLC. The business is profitable enough that people keep bringing up the classic S-corp strategy for reducing self-employment tax, but every time I read the IRS material I get stuck on the shareholder eligibility rules. I do not have a green card, I do not meet the substantial presence test, and I will still be a nonresident alien at year-end.
I am trying to separate common U.S. small-business advice from advice that actually applies to foreign owners. If the nonresident status blocks the S election at the shareholder level, I want to stop spending time on it and focus only on structures that are actually valid.
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