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Judith Ludwic
Judith Ludwic, Immigration Lawyer
Category: Immigration Law
Satisfied Customers: 28483
Experience:  34 years as practicing immigration attorney, with non-immigrant and immigrant visa experience.
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I am currently on H1B visa. Can I start a new business in United

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I am currently on H1B visa. Can I start a new business in United States? If yes, are there any restrictions on what work I can do for my new company?, any tax constraints?, What type of company I could form?

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.

 

Judith

Customer: replied 3 years ago.

Hi Judith,


 


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.

 




Q: How can I get my ROI or profit on my investments?

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.

Q: How to show this on my yearly tax?

Again, a CPA or TAX expert would advise on this. It is not an immigration issues.

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?

That would depend on the ownership structure and a tax advisor will tell you how you would do this for your tax purposes.

 

Judith

Customer: replied 3 years ago.

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.


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?

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.


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.

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.

 

Judith

Customer: replied 3 years ago.

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.

Judith

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