Starting up a business as an IBO

[dreamBig]

Hi,

I am on a H1B visa and wondering if I can start an Internet based (e-retailing/commerce) business as an Independent Business Owner(IBO). I am told by an organization, that introduced this concept to me, that it is legal for a H1B visa holder to do this. Is it true? Also, as an IBO will I be able to claim Tax Deductions for the expenses incurred in this business? And finally, can I also sign up my wife, who is on a dependent visa, as my business partner? The organizations says, since this is an internet based business which doesnot require an IBO to be physically present in any particular place(in this case USA), he/she doesnot need to have a work permit? Is this true? What could the legal problems that I may face if I do this business on H1b visa?

Thanks,
dreamBig