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Old 03-24-2012, 07:31 PM
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Join Date: Mar 2012
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Business Formation by immigrant status with H1B or F1

Hi,

This is Naidu, I am on H1B. My wife is on F1 and she is working on 1099 with CPT.

I am planning to start a corporation Company and make her work though that company. if i want to do that, what will be best option.

1. can i form company keep her as employee.
2. Can she form company on her name and work for it as employee.

I need to know what kind of corporation i have to form, if i want to start this.

Thanks in Advance...
Naidu.



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Old 03-25-2012, 04:47 AM
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Posts: 5,258
“1. can i form company keep her as employee.”---->Are you a US resident for tax purposes??? I assume that you are a US resident for tax purposes, then, you , as a resident /non resident alien (you can’t form S corp as a non US resident), can form a business entity,i.e., C –corp/LLC or etc. in US however it depends on the entity types, and subject to fulfillment of immigration requirements. For instance, you, as a H-1B visa holder who work for a company, can form a business entity in US however you cannot receive salary from the same entity. You cannot form an EE/ER relationship with any other entity until you get a petition from the current ER to work with other companies and get your H-1B issued from the new entity. However, the new entity should be eligible to do so. The important point to note here is that a non-resident alien can form LLC, C Corporation but not S Corporation. A shareholder of S Corporation must be either US citizen or a Green Card holder. she can work in your company as an EE provided that the company is active in her filed of study.An individual with a valid EAD can also start a business and work. EAD allows one to work as an employee and collect salary from the company.

“2. Can she form company on her name and work for it as employee.”---->Your wife, as a F1 Visa holder, can also create a business entity, but needs to form in the name of the person who has a valid visa(who can work legally and earn income), NOT in her own name. She can make investments in the business and can share profits. She can form C –corp/LLC but not an S corp. With OPT , she can work in her own company provided that the company is active in her filed of study. Her OPT doesn’t allow her to work in a company , even she owns it, if the work is not her field of study.


Last edited by Wnhough : 03-25-2012 at 04:53 AM.


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Old 03-26-2012, 02:55 PM
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Join Date: Mar 2012
Posts: 3
Need Info about H1B Holder as partner in Company formation

Hi,

This is Naidu, I am on H1B.

one of my friend is having GC, so we are planning to register a company as partners for operations & consulting all over USA.

can I be a partner without working in the company.

what are the complications doing this, Because i am on H1B working on W2 with other company.

what kind of issues i may see at the time of GC interview if i am a partner in a company.

Can I take profits from the company or not?

Thanks in Advance,
Naidu



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Old 03-26-2012, 04:16 PM
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Join Date: Oct 2010
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“One of my friend is having GC, so we are planning to register a company as partners for operations & consulting all over USA.can I be a partner without working in the company?”---->Correct. However, for H1B holder, the rule is that you can only work for your petitioner; an H1-B holder can be a passive owner(investor, I mean), but absolutely cannot work on the company. You must be a passive owner (not involved in the daily operations(it’s also not possible legally to work)) as a H1B holder sponsored by your ER and you are getting a W2 from them. (So, you can only open a company, NOT an S corp, here but cannot work for it since you are already working for the company which has sponsored your H1-B.)However, you can’t be a partner of an S corp.I guess Its better to get clarification from an immigration lawyer, as such matter may create issues in future.
“what are the complications doing this, Because i am on H1B working on W2 with other company.what kind of issues i may see at the time of GC interview if i am a partner in a company?”------>As nan h1b visa holder, forming an LLC or C corp, NOT an S corp, in US is not violation of the US law;you need some professional help form an immigrant attorney, OK???
“Can I take profits from the company or not?”---->I guess so; you can invest in business and make profits. you need to make sure you have a legal profit agreement with your partner. You need to report any income you making in your taxes.



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