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Hello, my name is Judith. Thank you for this opportunity to answer your questions.
You may not form a "S corp because that income is reported as earned income on your return.
You can form an LLC or a "C" corp.
You may not do anything but fund the corporation and sit on the board of directors which would hire the manager who then hires the employers.
You cannot open a bank account, sign checks, talk to customers or vendors, nothing but be a silent investor.
Thanks for your quick response. I have just few more questions and if you could clarify those, it would be great!
Q: How can I get my ROI or profit on my investments?
Q: How to show this on my yearly tax?
Q: Let's say, if I start the business with US citizen as my equal partner in the business, how can I share the expenses and profit with him/her?
I am not a tax expert. I could only tell you what corporate structures would not cause you to go out of status and what your imitations on duty are.
You will need to seek out a CPS or a JA tax expert who can explain how your profits are paid.
Generally under a LLC these are paid out and put on a special schedule of your tax return.
On a C corp you get dividends and capital gains.
Again, a CPA or TAX expert would advise on this. It is not an immigration issues.
That would depend on the ownership structure and a tax advisor will tell you how you would do this for your tax purposes.
Ok. I understand that all Tax related questions should go to a formal tax expert. Thanks.
Final 2 questions:
Q: If I form a LLC company in USA while on H1B visa, do I need to report it to anyone anyway? For example to the USCIS or DHS etc?
Q: Do I need to get any other visa or status for doing this? or I can just continue working on H1B for my existing employer and have a new company formed in parallel.
No you do not report it because you are not engaging in employment for the LLC. You are a silent partner who sits on the Board.
You may only hold one visa status at a time and you do not need any different visa status because you are not employed by the LLC.
Thanks a lot, Judith for clarifying my questions. Have a wonderful day ahead!
And you have a stellar week, as well.
If you have future questions you can begin them with "FOR JUDITH" and I will be your personal expert.
All the best with the venture. And than you in advance for your positive rating and any bonus you believe I have earned.
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