Legal Definitions - United States person

The term "United States person" is a legal classification used to identify individuals and organizations that are considered to be connected to the United States for various legal and regulatory purposes, such as trade regulations, sanctions, and tax laws. It broadly includes:

• Individuals: Any person who is a resident of the U.S. or a U.S. citizen. However, there is an important exception: a U.S. citizen or resident living outside the United States is *not* considered a "United States person" if they are employed by an entity that is *not* itself a United States person.
• Organizations:
  • Any business, partnership, trust, or other organization established or operating primarily within the United States (a "domestic American concern").
  • Any foreign branch, subsidiary, or affiliated company whose operations are controlled by a U.S.-based organization.

Here are some examples to illustrate how this term applies:

• Example 1: An Individual with an Exception
  Scenario: Maria is a U.S. citizen who has lived in Spain for the past ten years and works as a software engineer for a Spanish technology company that is entirely owned and operated by Spanish nationals, with no business ties to the United States.
  Illustration: In this specific situation, Maria would likely *not* be considered a "United States person." Although she is a U.S. citizen, she resides outside the U.S. and is employed by an entity (the Spanish company) that is not itself a United States person. This demonstrates the exception for individuals living abroad and working for truly foreign entities.

• Example 2: A Domestic American Concern
  Scenario: "Innovate Solutions LLC" is a technology startup incorporated in Delaware, with its headquarters and all its employees based in Austin, Texas. It develops and sells software primarily to customers within the United States.
  Illustration: As a business legally established and operating within the United States, Innovate Solutions LLC clearly falls under the definition of a "United States person." This applies regardless of the nationality of its owners or employees, as its legal structure and primary operations are domestic.

• Example 3: A Controlled Foreign Subsidiary
  Scenario: "Global Foods Inc." is a large food manufacturing company based in Chicago, Illinois. It owns and fully controls "Global Foods Asia Ltd.," a subsidiary incorporated in Singapore, which manages all of Global Foods Inc.'s manufacturing and distribution operations across Southeast Asia according to strict directives from the U.S. headquarters.
  Illustration: Even though Global Foods Asia Ltd. is a foreign entity incorporated in Singapore, its operations are controlled by its U.S. parent company, Global Foods Inc. Therefore, Global Foods Asia Ltd. is considered a "United States person" for various legal and regulatory purposes, reflecting the U.S. parent's influence and control over its activities.