Nonresident Alien, with no intention of becoming a US person is given the following options as comp:
In connection with services to be rendered for Company Z, A) $5mm worth of stock in Company Z once it goes public, some time in late 2022, with 50% vesting immediately with the remaining 50% vested evenly over the next 5years. Or they can opt for B) a $5mm interest in a partnership that will be owned by Company Z once it goes public. Interest in the partnership has the same vesting period as the shares Company Z. Company Z produces mostly portfolio income.
1) Assuming services are performed wholly outside of the US during the duration of vesting period, is there a difference in A or B. The comp is neither ECI or FDAP, so not subject to US income tax, correct? In addition when the interest, either common stock or partnership interest, is sold, it will be capital gain income that again is not ECI or FDAP?
2) An 83(b) election would be moot given the assumption in 1, correct?
3) Assuming some services are performed while in the US, does that change anything? I believe the 83(b) election is still moot. As long as the person isn't in the US for more than 183 days in a year(s) when they sell the interest it won't be subject to tax.
Am I starting down the right path? Any insight is greatly appreciated.