H-4 Visa and Want to be Shareholder in S-Corp


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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.

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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.

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