I am helping a company incorporate and one of the founders is not a us-citizen. They want to form an s-corporation, but the problem is according to US tax law, only US citizens can own stock in an s-corporation. We are trying to figure out a way around this restriction for the foreign founder. The solution I am considering to sidestep the ownership restrictions of an s-corp is by having the foreign founder create a solo LLC and then have the LLC
purchase the s-corp shares. An LLC does not restrict ownership to only US citizens. Guidance on this question I would be appreciated.