Friday, August 2, 2013

Special stuff for Chile



Just to let you know, I have the regulation in front of me as I type.
A “foreign eligible entity” is NOT an S.A. (Sociedad Anonima) for our purposes.

That means E.I.R.L.’s and Limitadas ARE “foreign eligible entities”.

Unless a Limitada elects to be a “pass-through” within 75 days of its formation, it is a partnership and all the foreign partnership rules apply.
If the owner of the EIRL does not have limited liability, the EIRL is disregarded by default and the owner doesn’t have to do anything.

I don’t know if the Limitada and EIRL designations provide limited liability.  If they do, then the elections would have to be made in a timely manner.

That’s good news.  Plus, the fact that Social Security has exempted US citizens and residents who are living in Chile, makes things a lot easier.

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