QUESTION
Can a foreign company become a shareholder of a US company?
Asked on Jan 09th, 2012 on Business Law - Florida
More details to this question:
Hi,
My company based in Serbia is interested in becoming a shareholder of a Florida based LLC. Is this possible? If yes, how would I go about it and where can I get more information?
Thanks :)
Take care,
Alex
2 ANSWERS
Probate & Trust Attorney serving Sarasota, FL
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As stated in another answer, foreign entities can be owners of US businesses, but there are some restrictions. There is a tax classification of entities under Subchapter S of the Internal Revenue Code which is not available with foreign owners or entity owners. In addition, you should be aware of the tax ramifications of such an investment and the charges and process for obtaining payments from the US company. Sometimes there are withholding requirements which surprise some foreign owners.
This is specific to Florida law and does not constitute legal advice as the facts presented are anonymous and incomplete. This is intended for general education only and does not create an attorney-client relationship. This should not be relied on and you must seek your own attorney client relationship.
Answered on Jan 12th, 2012 at 1:38 PM
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Absolutely, a foreign company may become a shareholder of a US corporation. An LLC is not a corporation and does not have "shareholders"; LLCs have "members" who are, in effect, partners with limited liability. Again, generally, foreign companies may own membership interests in US LLCs. Certain kinds of businesses are limited in their ability to have foreign owners, such as airlines and banks. You will wish to consult with a local attorney regarding your investment prior to making it.
Answered on Jan 09th, 2012 at 10:54 AM