Setting up US LLC or S-corp with EU partners

#2

S-corporation tax election is possible only for LLC members or corporation's shareholders that are US tax residents - citizens and resident aliens, so your European partners aren't eligible.

As the entity will have 4 initial participants, consider whether the countries where the other 3 are located are a treaty countries before any legal form and tax election is decided.

Consult the following for general information

https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes

and tax advisor for details.
 
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Reactions: Forester
#3
Where are your customers based? What countries are the other 3 partners based (EU is not a country)?

Maybe a limited partnership in Canada or UK and then have a US LLC and EU companies in the respective countries of residence as partners.

Another option would be a company in just one jurisdiction with an optional advance tax ruling, but this way is normally expensive in the US, probably easier to get the ruling in Germany hence it depends on the residencies.
 
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