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Judith Ludwic
Judith Ludwic, Immigration Lawyer
Category: Immigration Law
Satisfied Customers: 28574
Experience:  34 years as practicing immigration attorney, with non-immigrant and immigrant visa experience.
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I have filed a article of organisation llc in colorado and

Customer Question

Hi.I have filed a article of organisation for an llc in colorado and also got an EIN from irs. I here on h1b and realists that I shouldn't have given my ssn to get an ein for my llc. What should I do now ? Do I need to file form 8832 to change it from llc to corporation ??let me know yoir fees .
Submitted: 1 year ago.
Category: Immigration Law
Expert:  Judith Ludwic replied 1 year ago.

Hello my name is ***** ***** I am delighted to answer your questions today. I have 35 years experience as an immigration lawyer.

There is no problem giving your SSN for forming the LLC.

You are not prohibited from establishing an LLC in the US while on your H1B.

You are prohibited from working in the LLC and performing any duties for it. Using your SSN is not proactive unauthorized employment.

You do not have to make any changes. You may form and own the LLC under your H1B and be a member of the LLC.

I see this is the first time you are using JA and I am eager to make this a positive experience for you. Please ask follow-up questions if my answer is not clear.
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Judith

Expert:  Judith Ludwic replied 1 year ago.

May I answer anything additional for you to earn your satisfaction. I strive to give good customer service and comprehensive answers. I feel I have failed you. Please tell me what additional information would be helpful.
Judith

Customer: replied 1 year ago.
I know that there is no harm in giving ssn. But for llc if it does any kind of business that income will be reported on owners w2.and considering am on h1b,am I allowed to have that income reported on my w2?also my green card in process. Will this llc (sole owner ) create issues while.visa interview or during next gc steps like i485
Expert:  Judith Ludwic replied 1 year ago.

First, profit from an LLC is not shown on a W-2. Only wages are reported on a W-2.

Profit from the LLC is reported on a schedule of your tax return and is treated no differently than dividends you earn on stocks, interest payments from savings account, capital gains from stocks, etc. All of these things are passive income and permissible.

None of these things will create a presumption of unlawful employment.

The problem arises through what you do for the LLC. A silent ownership is not a problem but if you are performing any active service for the LLC, paid or unpaid, that is a violation of your H1B status.

So you are a little confused on how the profit and income from the LLC is reported and are mixing up your ability to earn passive income versus unlawful employment through performing services for the LLC.

A logical question by USCIS when looking at this the income earned by the LLC is how was it earned? Who managed the LLC? Who performed services through the LLC. Example the LLC is a software development enterprise and has $50K earned income through contracts. Who did the software development work? You cannot because that is not passive and if there is no reported payments to employees or independent contractors who would have performed those job duties then a presumption is raised you did the work. That is how USCIS would find out you violated your status. Not because your SSN was used to set up the LLC.

Judith

Expert:  Judith Ludwic replied 1 year ago.

I have sent you an offer for a telephone discussion. It is in your email box.

I put a lot of time into answering our question and want to make sure you understand the issues.

May I answer anything additional for you to earn your satisfaction. I strive to give good customer service and comprehensive answers. I feel I have failed you. Please tell me what additional information would be helpful.
Judith

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