chakrakr Posted February 19, 2013 Report Share Posted February 19, 2013 I am forwarding this link to CPA of the company.... Only concern is this is for State of NJ, this S-corp is in New York City , state of NY..... Are the rules differ by State?? This is a Federal law ... does not differ by State. You may send this whole thread to the CPA and ask him for a legal reference which says H1/H4 satisfying Substantial Presence Test AND filing 1040 (not 1040 NR) cannot be shareholder. Be specific about your status and say that you file your return as a Resident Alien per IRS. Link to comment
JoeF Posted February 19, 2013 Report Share Posted February 19, 2013 I am forwarding this link to CPA of the company.... Only concern is this is for State of NJ, this S-corp is in New York City , state of NY..... Are the rules differ by State?? No, this is federal tax law. Link to comment
t75 Posted February 19, 2013 Report Share Posted February 19, 2013 You cannot advise him as that is illegal work while on H4. Your education proves that you are not illiterate. Why would you want to participate in illegal or questionable activities? Link to comment
chakrakr Posted February 19, 2013 Report Share Posted February 19, 2013 Owner of the company spoke to his own CPA who is been with him since last 15 years..... and he advised him same, the H4/H1 can not be S-Corp Share Holder..he also advised that if he is desperate to establish such a partnership than , company structure has to be changed to C-Corp or LLC.....I doubt to get an advise from Immigration Attorney since He would be an expert in immigration, not in IRS issue.... I know one such Immigration Attorney who is been practicing for 35 years, Lets assume that his advise would be positive and I can be Shareholder in S-corp.... What if He is wrong because by reading all of above posts, I assume that this is the Very Gray area where there is loophole in the system.... but I dont want to get benefit out of it since It can be violation of status or it would not..... its probability and I do not want to take slightest chance pertaining to my status...... On the contrary, This is the life time opportunity for my career and I don't want to loose it....... Do you have a Green Card process going on? The only issue that I can see is, if you return to your home country, you will loss your Resident Alien status. At that point, either the corp need to change to C-Corp OR you need to cease to be a shareholder. Link to comment
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