Starting business on H4EAD

[hou2hou]

Hi,

 

I'm on H1B visa and my spouse has H4EAD. I want to understand leagal obligations (if any) on starting business on my spouse name.

 

Clarifications-

1. Can my spouse own/manage this business while I'll be pure investor?

2. Will there be any issue with my current GC (employment based)?

3. Can my spouse initiate GC after starting this business?

 

Thanks,

[JoeF]

You can't be involved in any business decisions, not even discussing things over dinner.

Your questions indicate that you would be the decision maker and your.spouse just the formal front. Such a thing would mean you'd be working illegality, and of course would result in lots of problems for your GC.

Also, it is not possible to get a GC though a company you or a relative have 5% or more interest in.

If you can invest $1M of your own money and hire at least 10 Americans, you could qualify for an EB5 GC.

[hou2hou]

Thank JoeF. I understand the necessity of being passive investor here. However, I strongly believe asking questions to understand the process is different than actually advising/spear heading business.

 

Could you please share details around "5% or more interest in"? Not sure how that is applicable, as any entrepreneur would certainly have more than 5% interest in their own business!

[JoeF]

Thank JoeF. I understand the necessity of being passive investor here. However, I strongly believe asking questions to understand the process is different than actually advising/spear heading business.

 

Could you please share details around "5% or more interest in"? Not sure how that is applicable, as any entrepreneur would certainly have more than 5% interest in their own business!

 

An entrepreneur would ask questions himself/herself, and not have the spouse ask the questions.

It seems that you want to be way more than a passive investor.

An entrepreneur would also have to have a board that controls the company. Generally, the VC people are on the board. An entrepreneur also would consult with an immigration lawyer.

It doesn't seem that your business idea is on that level.

This 5% rule was designed to prevent people from setting up more-or-less fake companies to sponsor relatives.

[hou2hou]

An entrepreneur would ask questions himself/herself, and not have the spouse ask the questions.

It seems that you want to be way more than a passive investor.

An entrepreneur would also have to have a board that controls the company. Generally, the VC people are on the board. An entrepreneur also would consult with an immigration lawyer.

It doesn't seem that your business idea is on that level.

This 5% rule was designed to prevent people from setting up more-or-less fake companies to sponsor relatives.

JoeF - For the sake of this discussion, lets keep aside about who can ask questions and who cannot. Also, nobody is born entrepreneur - so please forget about my/your level; it doesn't matter here. The idea behind having this forum/questions is getting to that level - eventually. ;-) 

 

Thank you for your response though. I appreciate if you could share real information - if you have one.

[JoeF]

It is obvious that you want to run the business. You are obviously actively involved. As I have told you, that is not allowed for you.

And I gave you answers already.

I have experience with running a small business. And I have friends who got startups off the ground with venture capital. That is a whole different level. You wouldn't be asking here if that is what you are trying. And starting yet another consulting business or some other mom-and-pop business is not what an entrepreneur is about. You've been throwing that word around without knowing what it means.