You don't have to have a green card to be an S-Corp Shareholder. If the owner of the single member LLC qualifies a resident under the Internal Revenue Code an S-Corp election can be made.
According the AICPA publication "The Tax Advisor":
One requirement for an S corporation is that it cannot have a nonresident alien as a shareholder (IRC Sec. 1361(b)(1)(C)). IRC Sec. 7701(b)(1)(B) defines a nonresident alien as an individual who is neither a citizen nor a resident of the United States within the meaning of IRC Sec. 7701(b)(1)(A). IRC Sec. 7701(b)(1)(A) provides that an alien individual is treated as a resident of the United States with respect to any calendar year if (and only if) that individual either
- (1) is a lawful permanent resident of the United States at any time during that calendar year (the green card test);
- (2) meets the substantial-presence test of Sec. IRC 7701(b)(3); or
- (3) makes the first-year election provided in Sec. IRC 7701(b)(4).
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