Can C corp have foreign shareholders in the US?

Yes, C corporations in the United States can have foreign shareholders. Unlike S corporations, which have strict limitations on the types of eligible shareholders (including restrictions against non-resident aliens), C corporations do not have restrictions on the nationality or residency status of their shareholders. This makes C corporations a popular choice for companies that seek investment from international sources. Here are a few key points:

1. Ownership: C corporations can be owned by individuals, other corporations, LLCs, partnerships, trusts, and non-resident aliens without any restrictions on the number or type of shareholders.
2. Global Investment: This flexibility allows C corporations to attract global investors more easily, as they can issue stock to investors of any nationality residing anywhere in the world.
3. Tax Considerations: While foreign shareholders can own shares in a C corporation, they must consider U.S. tax implications, including the withholding tax on dividends paid to non-resident shareholders and potential estate tax liabilities.
4. Reporting Requirements: C corporations with foreign shareholders may be subject to additional reporting requirements, such as filing Form 5472 if they engage in certain transactions with their foreign shareholders.

Overall, the ability of C corporations to have foreign shareholders is a significant advantage for those looking to operate on a global scale.