Would like to start a business on H1B visa?

[member@217]

Hi,

I am planning to open a LLC on H1B. I got to know that we can open business on H1B as long as we are a Passive Investor. Is that true?

My GC is in process with my current employer and I am not going to take any salary from the business I am going to setup.

Please advice.

Thanks,

Ravi Nallapati.

[JoeF]

Being a passive investor does not just mean "taking no salary."

It means having no active role in the business at all. It means putting money into a business and otherwise staying completely out of it.

The business would have to have a CEO who has work authorization, who makes all the business decisions, like who to hire, what contracts to sign, etc. The CEO would have full access to the business bank accounts, and you won't have any access.

Think of it like buying company stock on the stock market. For example, if you buy Microsoft stock, you become a co-owner of Microsoft. You don't have the keys to their offices, nor any access to their bank accounts, etc. Nor do you tell the MS CEO how to run the business.

THAT'S what being a passive investor means.

[t75]

You cannot "setup"; that involves illegal work.

[member@217]

Hi Joe,

When I can open a bank account on my company name why cant I have an access to the bank account..

Buying shares is a different scenario as you did not open the company of the shares which you are buying. In my scenario I am the owner of the company. I would definitely hire some one to run the business.

Please advice me if my assumption is wrong.

Thanks!

[JoeF]

Hi Joe,

When I can open a bank account on my company name why cant I have an access to the bank account..

You can NOT open a bank account on the company name. That would already be active involvement in the company.

And having access to the bank account also implies active involvement.

Buying shares is a different scenario as you did not open the company of the shares which you are buying. In my scenario I am the owner of the company. I would definitely hire some one to run the business.

It is the same scenario. Hiring a CEO would be the ONLY thing you could do. The CEO would open company bank accounts, the CEO would have access to the company bank accounts. You would NOT.