Starting a Business on H1b


pramodh68

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Posted

hi,

  i would like to start a business on h1b some one told me i able to start a company on h1B either LLC or C-crop but i cannot  able to work for the company or i cannot draw any pay check that i know  

 can i do voluntary work for the company without hiring a green card or h1b guy as a employee ?

please suggest me on this 

Posted

hi,

  i would like to start a business on h1b some one told me i able to start a company on h1B either LLC or C-crop but i cannot  able to work for the company or i cannot draw any pay check that i know  

 can i do voluntary work for the company without hiring a green card or h1b guy as a employee ?

please suggest me on this 

 

No. Any work/activity for which a person would normally be paid would be construed as employment. The only thing you can do on H1-B is to be a passive investor.

Posted

hi,

  i would like to start a business on h1b some one told me i able to start a company on h1B either LLC or C-crop but i cannot  able to work for the company or i cannot draw any pay check that i know  

 can i do voluntary work for the company without hiring a green card or h1b guy as a employee ?

please suggest me on this 

You can invest into a company, but you can NOT work for it, not even volunteering.

On H1, you can only be a passive investor, putting money into a business and otherwise staying out of it.

Kind of like investing in the stock market. For example, you could buy Microsoft stock. That would make you an MS co-owner. It doesn't mean that you could work for MS, or have any access to their bank accounts, etc.

Posted

hi all ,

   thanks for the reply today i spoke with an attorney he suggested me i can open a company i can be the owner or share shoulder but i cannot  run the business without any one . if you want to run the business you should hire the green card guy as a manager or u need to sponsor h1b under your company and make him as a manager. and i also read frequently asked questions in murthy forums they also telling the same thing people on H1B  can start a company on their own but he should not work for that company. 

Posted

hi all ,

   thanks for the reply today i spoke with an attorney he suggested me i can open a company i can be the owner or share shoulder but i cannot  run the business without any one . if you want to run the business you should hire the green card guy as a manager or u need to sponsor h1b under your company and make him as a manager. and i also read frequently asked questions in murthy forums they also telling the same thing people on H1B  can start a company on their own but he should not work for that company. 

Sponsoring an H1 for you by the company isn't possible, because if you do it, preparing and filing the paperwork would be work, which you can't do.

And telling the manager to file an H1 for you would also be work, which you can't do.

So, again, all you could do is being a passive investor.

  • 1 month later...
Posted

Hi Joe,

 

I am also planning to start business with my two friends. My friends are green card holder and I am on H-1B. We are planning to form a LLC. As per the forum I saw people talking about passive investor.

 

1> What is the meaning of passive investor?

2> As a passive investor can I add my name on LLC?

3> Being a passive investor and employed on H-1B, does it affect negativly on my immegration status or green card process?

4> If our LLC makes profit, am I ok to claim that profit?

 

Thansk

Posted

A passive investor is somebody who puts money into a business and otherwise stays out of it.

Think of it as investing in the stock market. If you buy shares of a big company, say MS, you become a passive investor, a co-owner.

That doesn't give you any rights to the company keys, or bank accounts, etc. Nor does it give you the right to add your name to anything. It wouldn't become MS + <your_name>.

A company management can decide to give out dividends, and investors can receive such dividends.

  • 8 months later...
Posted

Hello,

 

Me and my manager have started a consulting firm for IT professionals and is a LLC. I am just an passove investor in the firm as i am on H1B and he is the one doing all the work. My concerns are:

 

1. Though am a passive investor, can i have an email id with the llc domain like "firstname.lastname@llc.com"?

2. We have a bank account, can i be a joint holder of the bank account?

3. We have registered the llc under my and his name but he is the primary person. Is it ok to have my name under the corporation? Will it affect my green card or H1B process?

4. The memorendem says we are equal partners but he is the signing authority and i have no rights in any operations or any work associated with LLC, however i can withdraw my profits anually. IS that ok or it jeopardise my h1b status?

 

Any advice will be useful and appreaciated, Thanks in advance.

Posted

Hello,

 

Me and my manager have started a consulting firm for IT professionals and is a LLC. I am just an passove investor in the firm as i am on H1B and he is the one doing all the work. My concerns are:

 

1. Though am a passive investor, can i have an email id with the llc domain like "firstname.lastname@llc.com"?

2. We have a bank account, can i be a joint holder of the bank account?

3. We have registered the llc under my and his name but he is the primary person. Is it ok to have my name under the corporation? Will it affect my green card or H1B process?

4. The memorendem says we are equal partners but he is the signing authority and i have no rights in any operations or any work associated with LLC, however i can withdraw my profits anually. IS that ok or it jeopardise my h1b status?

 

Any advice will be useful and appreaciated, Thanks in advance.

 

You can't use any company resources, that includes email.

You can also not be a joint holder of company bank accounts.

"Withdrawing profits" is not quite how a company works. All money in the company bank accounts is the company's money. Company management, not the shareholders, decide what to do with the money. That could be re-investing it, building reserves for when the business is slow, or giving out dividends to the shareholders.

Have you discussed the contract with a business lawyer?

  • 2 years later...
Posted

There are many companies which offer solutions where you don't have to do any work or almost no work, I'll give you 2 examples, please let me know if I as a H1b visa holder can legally buy into such investments or perform activities mentioned below:

(1) Will I be able to invest in an automatic machine where I don't perform any activities for the company I own, for example, say a soda vending machine:

[1a] Can I own the soda vending machine on my name and earn money from it? (P.S: I'll have to re-stock the sodas or contract someone to do it for me)

[1b] Can I own the soda vending machine through a C - Corp or LLC, owned by only me and earn money from it? (P.S: I'll have to re-stock the sodas or contract someone to do it for me)

[1c] Can I buy a franchise from a X company on my name and earn money from it? ((P.S: I won't have to re-stock the sodas, X Company will do it for me)

[1d] Can I buy a franchise from a X company through a C - Corp or LLC, owned by only me and earn money from it? ((P.S: I won't have to re-stock the sodas,  X Company will do it for me)

(2) I know I'll be able to buy a house on my name and earn rent from it, however, will I be able to do the same through a C- Corp or LLC ?

Posted

You can NOT do any work for the company, not restocking vending machines, not buying stuff for the company, not depositing checks, not filing taxes. All that is work, and requires somebody with the appropriate work authorization.

On H1, you can ONLY be a passive investor.

  • 3 months later...
Posted

Hi,

A friend and I (both on our H1bs) want to start an S-Corp. I am aware that you can only do so as a passive investor. However I will be getting married in November and (hopefully) will be on my green card by May 2018 (he is also getting married but not till late 2018). 

The company we wish to start has many different characteristics that will delay it from becoming operational until several months after the company is started (has to be approved to be a Medicare/Medicaid supplier, equipment needs to be purchased, website needs to be made,etc.) Is it possible for us to get the company started while we are on our H1bs so we can get everything aligned and ready so that once i go on to my green card, the company can go operational? 

Thanks!!

Posted

Who would file the supplier application, who would buy equipment, etc? All that is work, and only somebody with work authorization can do that. Also, for an S-Corp, all shareholders have to be US citizens or LPRs.

  • 2 months later...
Posted

Both me and my husband are on H1-B. Can he start a business and simply be a passive investor? In that case, can I manage the company and have the company sponsor my GC?

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