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What is the best legal entity for 2 partners (American resident and NON-resident)?

New York, NY |

My partner is a US citizen running an S-Corp in NY and I am a Ukrainian citizen working as independent entrepreneur in Kiev, Ukraine.
Although my partner is a US citizen he permanently resides in Ukraine for more than a year already. We would like to create a mutual legal entity in a state where state (federal) tax is not applied or smoothly switch from an S-Corp legal entity to a Partnership Legal Entity with (if possible) possibility of attaching the same bank account used by S-Corp and using this bank account by the two of us as equal partners (50/50%).
What is the best Legal Entity for us to create to avoid the above mentioned taxes. Like I said we both reside in Ukraine right now and provide Consulting Services online but processing all the payments through American channels.

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Attorney answers 3


To comply with all legal requirements and meet your objectives I suggest meeting with an attorney who is versed in corporate law in person. Have your U.S. partner meet with such counsel for further legal advice. As you may realize, no one can effectively tell you both what you need exactly without discussing it in person during a confidential meeting protected by the attorney-client privilege.

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I agree with my colleague.

PROFESSOR OF IMMIGRATION LAW for over 10 years -- This blog posting is offered for informational purposes only. It does not constitute an attorney-client relationship.

Alexander M. Ivakhnenko

Alexander M. Ivakhnenko


Thank you.


You've got several options but which makes the most sense depends on multiple factors. Sit down with an attorney and explore them. It will be well worth the time and you'll get it setup right the first time.

Good luck.

Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.