H-1B & H-4 doing business with an LLC

[RichardFranco]

I am currently working full time for my employer on a H-1B visa and my wife is on a H4. She is not working.

Besides my main occupation, we have been working on setting up a business of our own. I formed a DE LLC not too long ago and listed my wife as a first member of the LLC (100% owner).
I also applied on-line for a Tax ID for the LLC and put down my wife once more on the application (SS-4 form) as a principal owner using her Tax Payer Identification Number.

As it stands, we have put no capital in the LLC and we have not opened any bank account(s) yet, nor did we do business with the LLC yet.

Questions:

1) Does the fact that my wife was listed on the SS-4 form have any consequence and if yes which ones?

*** EDIT: While non-US citizens and non-Alien Permanent Residents can own a business/ assets/ a house etc... in the house, they can only operate a business with a work authorization. So even setting up a business should be done by a US citizen, Permanent Resident or an agent, on behalf of the foreigner (viewed as an investor here).

2) Is there a minimum we must pay the MD if we hire one?
Could he/ she voluntarly work for free in the LLC (say a friend would accept to do this)?

*** EDIT: No minimum. Free yes. Both in particular when the business is recent and trying to get off the ground. Easy to justify.

3) Can business payments be made to the LLC from clients without hiring a MD? In that case someone still has got to invoice clients and we still need a US bank account in the state of DE (where the LLC was formed) or any other state where we do business and the LLC is registered. How is either one possible without having any employee, can my CPA do this besides the accounting books?

*** EDIT: I haven't found a clear answer to this one yet. Anyone?

4) I saw EAD-related questions often. I wonder if in my case my wife and/ or me can apply for an EAD (my LC application is stil pending)? Or is it only possible when applying to adjust to permanent residence status (post I-140 and I-485)?

*** EDIT: I found the answer to this. The EAD is post-I-140 & I-485 and while waiting for the actual Permanent Resident Card to arrive.

5) I would like to request referals for CPAs who are very familiar with H-1B visa holders business and taxes issues.
My current CPA is ok and isn't up-to-date in regards with the questions I posted in here.
Please refer your CPA to me if your situation is similar to mine.

*** EDIT: Please PM referrals.

Best to you all.

[RichardFranco]

Guys, anyone could help here?

[RichardFranco]

You are probably right.

My main concern above is that I may have made a mistake by listing my wife on the LLC as a first and only member. Later on, in order to obtain a Tax ID # for the LLC I provided my wife's tax ID on the application as she is the owner and only member of the LLC.

Were these mistakes?

I appreciate your help and thank you advance.

[sick_of_waiting]

RichardFranco,

I am afraid you broke the law by opening an LLC on H1-B visa. Although some experts here claim that you can open a company but can not work for it but isn't the task of opening a company "work"? So, be careful in the future and hope nobody caught of going to your accountant to open your company.

I hope this helps.

[sick_of_waiting]

Originally Posted by ****

Not really, because at that time, the company doesn't exist yet. And even if, e.g., by investing into an existing company, until the signature, the investment isn't made.
But I admit that it is somewhat strange from a "normal person" view. In legal matters, the role and the timeframe matter, though.

Are you suggesting that if one is "creative" enough then it is okay to circumvent the law?

[sick_of_waiting]

Originally Posted by ****

No. A person in this case plays several roles. The person can't play the role of company representative without work authorization. In the role as private person, it is of course possible to fill out forms, etc.
This is standard operating procedure with legal stuff. Please educate yourself about that.

How come one can fill out forms for a "corporation" as a private person but can not paint one's neighbor's house as a private person...it seems your logic changes in every post.

[sick_of_waiting]

Originally Posted by ****

What a moron.
Painting a house is normally done by a company.
You are a complete idiot. Get lost!

Oh really! What an idiot! You can't even paint a house and have to hire a company to do that for you...no doubt...someone who spends so much time on this board has to hire a company to paint his house!

[sick_of_waiting]

Originally Posted by ****

And our moron doesn't understand the English language, either. Helping neighbors etc. is the issue. You can of course paint your own house.
With every post, this troll shows that he is a complete moron.

An idiot like you would hire a company to paint his house..."real" humans usually ask their friends/neighbors to help them do that and they don't ask about their immigration status before using their help...man, what an as*h*le this guy is!

[RichardFranco]

There are always several ways to skin a cat. No need to argue on my thread. I dislike that.

Thank you both for trying to answer it though.

Richard