H4EAD Home based business


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I am on H1B and my wife who has an H4 EAD wants to start a cottage industry business.  Since I am the only monetary source of her initial funding for the business set up, will it look like I am directly involved with her business ( being H1B, I can not be a part of a business..) ? As it's a cottage industry business, operating from home, it doesn't require a huge capital for her to go for a loan on her name either. So we need your suggestion to proceed with this. 

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You can invest in a business, but otherwise have to stay out of it. She has to run it, she is the one who has access to the bank account and all company assets.

But, have you thought about what would happen if you lose your job? Then her H4 would become invalid, and with it her EAD, which means she would have to stop working in her business (the business would have to hire somebody with work authorization to do anything, including filing taxes.) Also, nobody knows if or what the current anti-immigrant administration is going to do to the H4 EAD...

So, running a business on H4 EAD is rather risky.


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Thanks JoeF and pontevecchio for your feedbacks. But my main concern is - will they come after ME (H1B) accusing a direct involvement in a business as my wife (H4EAD) will do cottage industry business from "Home" where I am also there   although I am not going to help her in the business activities nor I have the skillset to do that. FYI.. she is planning to do jams and jellies etc. which are allowed under cottage industry.

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