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Wilton A. Person
Wilton A. Person, Immigration Lawyer
Category: Immigration Law
Satisfied Customers: 4147
Experience:  Knowledgeable and experienced immigration lawyer.
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Hello, I am on H1b visa in the USA. I intend to form an

Customer Question


I am on H1b visa in the USA. I intend to form an online LLC registered in USA. I intend to derive income in the form of dividents from it. Is it possible to make someone not residing in the USA as the CEO of the company paying active salary to the person in the process?

My work will be voluntary non salaried and I will be 100% shareholder of the company.

Does this have any restrictions from business or immigration law perspective?

Submitted: 3 years ago.
Category: Immigration Law
Expert:  Wilton A. Person replied 3 years ago.
The general rule is that a foreign national is only allowed to work in the United States pursuant to the scope of his or her employment visa which generally does not mean that the foreign national is permitted to start a side business in the United States.

The inquiry as to whether the person is engaging in work is not whether the position is paid or whether the person is volunteering but the degree of control that the person exerts over the day to day operations of the business.

It is generally permitted for a foreign national to engage in passive investments such as the stock market. To that extent, it may be allowable for the person to receive income from a business if he or she is only a passive investor but this is a factual inquiry conducted on a case by case basis.

If you decide to move forward with the business, it would probably be a good idea to retain an immigration attorney to assist with you staying on the right side of the immigration laws.

Customer: replied 3 years ago.
Would you recommend a LLC or a C corporation?
Expert:  Wilton A. Person replied 3 years ago.
Both provide liability protection but I am prohibited from providing legal advice. For immigration purposes, there is not really any difference but there are difference with respect to tax treatment.

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