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maaleem

H1b Opening LLC for Passive income

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Hello- I am on H1b and have an approved I140 waiting for GC priority dates to become current. I am planning to purchase a commercial property to get rental income. As part of this, I would be getting a loan from bank. However Banks require me to Register an LLC company under my name and purchase it under company name.
 

This type of commercial property is purely for rental purposes. I would be collecting a monthly rental check and Not involve in any running business, not maintaining building/maintenance, not paying property taxes, not paying insurances etc (basically these are called NNN properties (i.e Tripe Net properties)) which are truly passive in nature. This will be stated in purchase agreement as well.

I read many posts and contacted few attorneys as well and all I hear is if it is Passive investment then it is fine. I did not get any clear answer as I can create LLC on my name (100% myself as owner) and purchase a commercial property.

My question is , being on H1b can I register an LLC under my name without involving any other partner etc? Are there any legal complications which needs to be aware of?

 

Thanks

A.M

 

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A company has to sign agreements, accept payments, file taxes, etc etc. All that is active involvement. Signing the purchase agreement is also active involvement, which you can't do for the company.

You can create a company but somebody else with work authorization would have to run it and make all decisions.

Edited by JoeF

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@JoeF: On the lines of what you said. If this guy actually has someone managing the LLC (meaning signing all the docs on behalf of LLC). Would that be considered passive investment. Just saying that all things such as sign agreements, accept payments, file taxes etc is done by the manager and the LLC is shown as manager run and not owner run, would that work? If the answer to that is yes, can that manager be outside of US. Imagine things such as e-signing the offer agreement, hiring someone to do property management file taxes is all done by this manager with all the proper audit trail. Would that make the situation better?

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