The owner of your company does not have to be an American or even an individual. Your pre-existing business can be the owner, the director, or the managing member of your new US entity.
If you are forming your company in a state that keeps member information as a part of their public records, you will need to enter your existing business as a member of your company formation document. If your state does not keep the owner’s information in public records, you can add another article to your Certificate of Formation, or simply demonstrate the member structure through inner company documents like the Statement of Authorization, Operating Agreement, or Bylaws.
The EIN Responsible Party can’t be a company. It must be a regular person, not a legal person.
According to the previous regulation, an EIN Responsible Party could be a company or a person. However, with the new regulation, applications, where an EIN is used for the Responsible Party, aren’t accepted by the IRS.
EIN Responsible Party Definition by the IRS
According to the IRS, an EIN Responsible Party Definition is as follow:
“The “responsible party” is the person who ultimately owns or controls the entity. Who exercises ultimate effective control over the entity. The person identified as the responsible party should have a level of control over. Or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual, not an entity.”
