The gap, named · our reading of the rule

New Permanent Residents often maintain restrictive nonimmigrant board structures unnecessarily. However, permanent residency subjects worldwide income to U.S. taxation and requires foreign entity reporting.

The Regulatory Framework

Under INA § 274a.12(a)(1), Permanent Residents have unrestricted work authorization. LPRs qualify as S-Corporation shareholders under IRC § 1361(b)(1)(C), but must disclose foreign corporate holdings on IRS Form 5471.

How entrepreneurs prepare for this conversation

• Step 1: Evaluate S-Corp Status: Consider filing IRS Form 2553 to optimize salary and self-employment taxes.
• Step 2: File Foreign Disclosures: File Form 5471 for foreign entities (10%+ ownership) and FBAR (FinCEN 114) for foreign accounts exceeding $10,000.

CPA & Attorney Interrogation Sheet (What to Ask)

1. Is an S-Corporation election advantageous for my current revenue level?
2. Do my overseas business holdings trigger Controlled Foreign Corporation (CFC) rules?

What this is not This piece quotes the published rule and says plainly where we are reading it rather than quoting it. It is not legal, tax or immigration advice, it creates no attorney–client relationship, and neither you nor we can apply it to your facts. Rules also move — check the date above, then take the questions in this piece to your own licensed attorney and CPA, who are the only people who can advise you.

Sources · primary law first, our own notes labelled as such

INA § 274a.12(a)(1) — employment authorization for permanent residents

26 U.S. Code § 1361(b)(1)(C) — S-Corporation shareholder eligibility

Ownership and work authorisation are treated differently in the rules, and that difference is what this library is about. Everything here is written for people keeping the job that holds their status.

Put a number on it. Readiness Check

Then choose your route. The Immigrant Entrepreneur Cohort is four weeks, while employed, and it starts with exactly this question. See the next run →