Jump to content
All posts are moderated, so it will take time for your post to appear!
Search In
  • More options...
Find results that contain...
Find results in...
the1

H1B rule - start a business in INDIA

Recommended Posts

Hi,

I'm on H1B(GC in-process), now I'm planning to start a company in INDIA, below are my questions,

  1. Is it legal for H1B holder to start a business in foreign/INDIA
  2. if it is legal, do I need to report in US tax returns
  3. if I need to report in US tax returns then what is the limit on foreign income, even if company not making any profits or if I earn any income on rental properties.

Please suggest.

Share this post


Link to post

1. I AM NOT A LEGAL EXPECT, but I think it is ok. May be you won't be the sole owner or handling the day to day activities. I will be interested to know others opinion too on this.

2. Yes, You will have to report it.

3. There is no such limit that I know when reporting to IRS. But there is a limit on how much you can transfer back from India to US for individuals which I think is $250K per year.

Edited by User099
text

Share this post


Link to post
On 11/19/2019 at 11:06 PM, the1 said:

Hi,

I'm on H1B(GC in-process), now I'm planning to start a company in INDIA, below are my questions,

  1. Is it legal for H1B holder to start a business in foreign/INDIA
  2. if it is legal, do I need to report in US tax returns
  3. if I need to report in US tax returns then what is the limit on foreign income, even if company not making any profits or if I earn any income on rental properties.

Please suggest.

You can start a business, but you can NOT work for it in any form while you are in the US on H1. On H1 you can ONLY be a passive investor, putting money into a business and otherwise staying completely out of it. Working for it would be a violation of the H1 rules.

On H1 you are a US tax resident (except possibly the first year) and you have to declare your worldwide income on your US tax returns. See IRS Publication 519, Tax Guide for Aliens.

Edited by JoeF

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×