K-1 Visa from Latvia, Company Ownership

[Elisefavre 0]

Hi,

I’m based in Latvia and had a question that might be relevant for others in Europe as well.

Has anyone here gone through the K-1 visa process while owning or running a company in Latvia?

I’m trying to understand:

• Does owning a business abroad impact the K-1 approval in any way?
• What happens to your company when you move to the U.S. on a K-1 visa?
• Are there any tax or legal issues to consider between Latvia and the U.S.?
• Did you keep your business active or close it before moving?

 

I feel like this situation is quite common in Europe but not often discussed here.

Would really appreciate any insights or personal experiences

Thank you

[Nonofpm 0]

Hi,

I’ve seen a few people in your situation with Latvian companies, so here’s the simple version:

Owning a business in Latvia doesn’t hurt your K-1 at all. What matters is your relationship and your fiancé(e)’s ability to sponsor you.

The main thing to watch is after you arrive: on a K-1, you can’t work right away. So if you keep your company, avoid being involved in daily operations until you get your work permit (EAD). Just being an owner/shareholder is usually fine.
 

For the company itself, you don’t have to close it. Many people keep their Latvian SIA running and manage it remotely or through someone locally.

The tricky part is taxes: once you’re considered a U.S. tax resident, you may have to report your Latvian company and income to the U.S. That can get technical pretty fast, so it’s worth getting advice.

[Crazy Cat 46,557]

3 hours ago, Nonofpm said:

once you’re considered a U.S. tax resident, you may have to report your Latvian company and income to the U.S.

You WILL have to report all income world-wide regardless of where the business is....once you are a legal resident of the US.  This applies to all US citizens and all US Green Card holders.

Edited 6 hours ago by Crazy Cat

[Crazy Cat 46,557]

4 hours ago, Elisefavre said:

• Does owning a business abroad impact the K-1 approval in any way?
• What happens to your company when you move to the U.S. on a K-1 visa?
• Are there any tax or legal issues to consider between Latvia and the U.S.?
• Did you keep your business active or close it before moving?

1.  No impact until you are a legal resident.

2.

3.  a. You must report all world-wide income to the IRS once you become a legal resident. 

     b. The US allows a Foreign Income Exclusion at tax time.

     c.  If assets and/or bank accounts meet certain criteria, you must also send a Foreign Bank Account Report (FBAR) to the US Department of                the Treasury once a year.

 

Edited 6 hours ago by Crazy Cat