Buying a Retail Business while on H1B

[gauravs04]

My friend and myself both on H1B, are planning to buy an existing retail business.

There would be a manager who would take care of day to day business. Since we already have jobs, we would not work for the business.

Is this setup feasible ?

At the end of the year if there are any profits/losses, are we entitled to those ? Any implication on our GC processing ?

Thanks

[JoeF]

You can own a business, but you can not work for it, in any shape or form.

Essentially, you can only be a passive investor.

You can put money into a business, but you have to completely stay out of the business operations. You of course should not even have access to the business bank accounts.

If the business management (not you) decides to give out dividends, you can receive them, and you of course would have to declare them in your tax returns.

[t75]

It does no work in your favor.

Be sure to involve and attorney in your plan to protect your interests since you will not be directly involved in the management of the business.