H1B Parent starting business for US Citizen child

[r_nanda_k]

Hi Everyone,

My wife and I are in H1Bs and working for separate companies. Recently we had our baby born in USA. As we know that he automatically becomes an American Citizen, can we register a business in his name and manage the company on behalf of him? We know that we can not work for that business, still we may need to put some effort on setting up the business, hire people, handle his bank account etc.

Do they have any limitations on someone’s age on owning a business? In my case the business owner would be an infant..!

Thanks in advance.

Cheers
Nanda

[r_nanda_k]

Hi ****,

Thanks for your reply. I am just trying to find out the possibilities of not having a third person (GC or US Citizenship) to register my company with.

As per your saying, I understand that it is not possible for an US Citizen Child to be a part of or own any business in their name unless until they become 18, though they are allowed to have bank accounts etc.

Cheers
Nanda

[EricS]

Originally Posted by r_nanda_k

Hi Everyone,

My wife and I are in H1Bs and working for separate companies. Recently we had our baby born in USA. As we know that he automatically becomes an American Citizen, can we register a business in his name and manage the company on behalf of him? We know that we can not work for that business, still we may need to put some effort on setting up the business, hire people, handle his bank account etc.

Do they have any limitations on someone’s age on owning a business? In my case the business owner would be an infant..!

Thanks in advance.

Cheers
Nanda

If you want, you can own a business yourself. You do not have to be a citizen to own a business in US. As a business owner you can hire people, but you CANNOT manage them. Those hired people will have to manage the business.

Now if you want to start a business in your baby's name, I do not know if you can do that or not, but even if you start it, you cannot work for it (manage). Wait for **** to respond. He is a expert on such issues.

[r_nanda_k]

Hi EricS,

Thanks for your reply. In the case of me owning a business, are you saying that the company can be registered in my name? If so, what would be my title in this company?

I know that I can invest my money as a shareholder (passive investor), but can I be the CEO or President (who only can hire people)?

I believed that the company should be registered under a person who has a GC or US Citizenship. That is why I posted this thread in the first place...to have my company registered in my Child name...!

I hope you guys can give me the right direction.

Cheers
Nanda

[Innocent4Ever]

Originally Posted by ****

You don't even need to have a visa or be in the US to start a company. There is one company form, though, the S-Corporation, that can only have US citizens or Permanent Residents as shareholders. But other company forms are open to everybody. The only issue is working for the company. That requires work authorization. Most people don't realize that owning a company and working for it, or running it, are two different things. A company owner does not necessarily have to run his company. That's probably because most small companies are owned and run by the same person. But these are two different roles that can be filled by different people.

Let's say r_nanda_k formed a C corporation (not S corporation) and he and his wife are the only shareholders (President and Vice President) in that corporation. The corporation commenced its business and r_nanda_k hired a manager to carry out the day to day operations of the corporation's business. (playing just the ownership role and not working for the corporation).

The corporation generates a profit of 100K (assumed figure) during the first year of its operations. r_nanda_k feels that the corporation's business is very promising and foresees that his corporation can generate higher profits if he could quit his job and manage his own corporation, (wants to play both the ownership and management role) which cannot be done without work authorization. Can r_nanda_k file H1B transfer seeking work authorization through his corporation and sponsor his green card? Does INS approve the corporation's H1B petition and GC petiton, that the corporation files subsequently?

[r_nanda_k]

Hi Innocent4Ever,

I was about to ask the same question....thanks for joining me.

Hi ****,

Thanks once again. Your explanations cleared all of my doubts. I would wait until I get my GC with present employer before I takeover my company.

I hope this thread helps all of those out there looking for possibilities like me.

Cheers
Nanda

[Innocent4Ever]

Originally Posted by ****

In principle, an H1 is possible. But, he would need to have a degree in management. ------ I have a Bachelor of Business Management degree from my country and MBA from U.S. university.
Furthermore, it is very hard to convince CIS that a college degree is required to run a company. If the job doesn't require a college degree, an H1 is not possible. ------- A high school student certainly cannot do that job as it requires active decision-making, strategies, and tactics on the part of management on a daily basis.
Third, because of the potential for fraud, CIS tends to investigate such applications. Something like that should not be tried without a lawyer experienced in these kinds of applications. ------- Why does INS consider this as fraud, when you are paying taxes and able to maintain your status? Would you suggest any good lawyer who can advise me in forming a corporation from both immigration and business viewpoints?
As for a GC, as per the immigration law, it is not possible to get a GC through a company the applicant or a relative owns more than 5% in, unless the applicant provides an affidavit of support from a US citizen or PR. There seems to be a small loophole opening: AC21 allows a job change when the I-485 is pending for over 180 days. CIS has indicated in a memo that a job change to a company owned by the applicant would be ok. But again, the job has to be similar to the one the I-485 is based on, so unless the original GC application was for a management job, it wouldn't allow running the company.

Thanks for your reply, ****.

[Barkri12]

Unless you are a U.S. Citizen or a U.S. Green Card holder, you must be in possession of a valid have a visa in order to enter the United States in Treaty Trader or Treaty Investor status.
If you are planning to start a business or have just started a business this may be music to your ears. Everywhere we look, the news does not sound promising.