Business on H1/H4


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I am on h1 visa, wanting to start a salon for my wife. I have gc friend who is willing to let me start a business on her name. Our PD is March 2014. Id like to buy a salon franchise from american lady who is american citizen & my wife has worked with her in the past. My questions are:

1. If i start the salon with this american lady, should i have to be a partner on paper? Bcoz im assuming if ill be the sole owner, i cannot write checks to my employees.

2. How will i do my personal & business taxes.

3. Id like to stay away from all the hassles to not make my gc process troubled.

My friend is willing to let the business on her name. But just in case if she later in future decides she wants to work or any other change in mind stuff. I wanna do it either on my name or my wifes. So short question should be how do i start the business keeping our statuses safe

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Using just somebody's name is not going to work.

This whole "on paper" stuff is illegal.

A person on H1 or H4 can ONLY be a passive investor into a business, i.e., putting money into a business and otherwise staying out of it.

Your wife would not even be allowed to take the trash out for the business.

I suggest reading this:

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Your question is a little unclear. If you want to start a Salon with an American partner, yes it can be done as long as you are a passive investor. You (or your wife) can be majority share holders. That's not an issue. 


What is an issue is to do any work the person should be a Citizen or GC holder or otherwise authorized to work. Ownership does not matter for this. Being an owner does not give one a right to work for the company.


As for taxes, depends on structure of the company. Typically its a flow through of profits. You get taxed on your share of profits. Talk with a CPA about this.

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I understand my wife cannot work for the salon. One more question was if i am the sole owner, can i write checks for the employees? If not i assume, i will have to end up doing a partnership. And my partner will have to write checks and be the manager.


Writing checks IS work. So, that is NOT allowed.

On H1 or H4, a person can ONLY be a passive investor, putting money into a business and otherwise completely staying out of it.

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