Can H1b be authorized partner in an LLC.


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Hi Murthy Forum,

 

I have read many reviews regarding H1b holder to be a co-owner of an LLC. But it doesn't provide me clear understanding.

 

Below are my concerns.

 

My friend(green card holder) started an LLC. He is ready to offer me Partnership in the organization (49%, he wanted to keep 51% as he would be the primary owner and signing authority). But being H1b holder for some X company,  I understood, I am not suppose to work for this new company.

 

But my questions are

 

  i. Am I eligible to join in partnership(51%-49%) agreement as a co-owner(but not just a  passive investor)?

  ii. Do I have legal right to get profit/loss (but not just dividend) for my share at the end of each year?

 

 

Thanks,

Ram

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On H1, you can only be a passive investor.

You can not have any active role in the company.

And companies don't just give out profits. That's not how companies work. There would be an orderly process, often called dividends. And for losses, you obviously wouldn't get them (negative money?)

For the details how this works in a particular company form, you would have to consult a CPA or business lawyer. If you have money to invest, I am sure you have money for a consultation with a CPA or business lawyer. Don't be penny wise and pound foolish.

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