I am a H1-B holder in USA and planning to open a Consulting Company in USA. Can i have 100% ownership and make my friend (who is a Citizen) as the managing member? Can I operate LLC by having a Citizen as managing member and will be basically operating as employee? If this option works, how to work on the EIN document? What are the rules and laws to be kept in mind while opening the LLC?

#1;As long as you are a US resident for tax purposes, I mean , under the IRC rule, then yes you can open a consulting Co, an LLC in US;however,if you are a non-resident alien (with an H1B visa), then, there should be no problem with you owning a business as long as you take a passive role, receiving only profits from your investment.
As you know, your work in the U.S. is employer-specific (i.e. limited
to employment with the approved employer/petitioner) so working for
your company and receiving any kind of compensation for your work is strictly not allowed. Doing a bit of volunteer work, like running
errands, is permissible, but best done after you have hired an
employee to run the day-to-day operation of the business. In other words, you, on an H1B in the US is legally allowed to invest in any venture or company and could possibly undertake some limited volunteer work on behalf of the venture or company. However, you cannot work indefinitely for that company and earn a salary without obtaining prior approval from the USCIS or DOL to work for the particular venture or company.however,you can't form your llc as an S-Corp. For that you have to be a citizen of USA. There are multiple ways of starting your own company, but one of the most effective one is by incorporating Limited Liability Company. You can find lots of companies on the net which can do this. LLC can be a Partnership Firm or the liability protection as a "Incorporated Company". You can be the
Chairman or Director of the board, but you can't work for it, unless
you have an H1 visa issued from that company. But, you can always hire a CEO for the company, who has a work permit(Green card or Citizen
etc.).





You may need to consult with an Immigration lawyer and Corporate lawyer.

#2;As mentioned above. It is that you cannot work, period, for your company, whether that work generates income or not. Having a business and working at it versus investing in a business
are two vastly different things. Recieving the profit from an
investment is appropriate. Receiving a salary or other compensation
from a business is not appropriate. The IRS takes the view that
regularly working for an entity (for a specific period every day,
etc.) constitutes employment. The INS would typically follow suit,
employing the IRS definition. If you set up a corporation,
perhaps paid a fee to someone to actually run the business, invested
in the business, and received the profit, then I can see that this
legal structure insulates your clients from direct "employment" and
thus could be permissible. your priority is to keep your immigration status safe andsecure. When in doubt, err on the side of caution. If you feel in your gut that you really should be being paid for your assistance, then you are probably are putting your status in jeopardy.


#3; EIN# is like the business' SS#. All profits/wages/ect by the company will be under the EIN#. This way the IRS can track the company's earnings, losses, ect.If you are self-employed, you use your SS#.EIN is needed only if you have employees.Pleae read above.