H4-EAD

[luck2u]

My wife is on H4-EAD, planning to start an LLC for a franchise opportunity. Would you recommend to start an LLC by H4-EAD person as H4-EAD is in jeopardy or recommend me to be included in LLC so that if she lost EAD, we can still continue business on my name as a passive investor, being on H1B. Please advise.

[User099]

If the business is on your name and you are the sole owner for it (your wife can't work for it on H4 if she looses EAD), who will you be treated as a passive investor? 

[luck2u]

@User099: I didn't got your point. Is it good to be on my name itself so that even we loose H4-EAD, I can still continue business as passive investor being on H1B?

[User099]

If your wife looses her EAD, she will not be eligible to work. You are on H1 so you can't work for the business. Who will be managing the business then?

If the business is on your name, you will not be treated as a passive investor but as an owner who manages the business. 

You need to find someone who has a EAD/GC/Citizen who can own and manage the business when your wife is not working for it. 

20 hours ago, luck2u said:

@User099: I didn't got your point. Is it good to be on my name itself so that even we loose H4-EAD, I can still continue business as passive investor being on H1B?

 

[luck2u]

Thanks @User099! Agree to you on H1B person owning a firm, when I took legal consultation I got to know that H4 person can own business even without EAD but cannot work (lack of EAD) i.e., like H1B person investing in some company shares but not working for the same company while H1B is with a different company.

[User099]

On 4/17/2020 at 4:42 PM, luck2u said:

Thanks @User099! Agree to you on H1B person owning a firm, when I took legal consultation I got to know that H4 person can own business even without EAD but cannot work (lack of EAD) i.e., like H1B person investing in some company shares but not working for the same company while H1B is with a different company.

Both the points about H4 and H1 are true. But if H4 doesn't have a EAD, you will have to keep the business closed. I don't know if that will work for the nature of the business you are planning. Any way..Good luck!