Business on H1B. quick questions...

[TkNeo]

Hi there,

I have a few questions about starting a business on H1B. I have read a few posts and threads here and there which say its perfectly legal to do so. It seems like i cannot be on payroll of the business however i can take profits from it.

1. Does it have to be in partnership with a GC holder. If yes, why?
2. What difference does it make if i get money through a payroll or i take the profit and not be on the payroll?

Thanks !!

[saigc]

Originally Posted by TkNeo

Hi there,

I have a few questions about starting a business on H1B. I have read a few posts and threads here and there which say its perfectly legal to do so. It seems like i cannot be on payroll of the business however i can take profits from it.

1. Does it have to be in partnership with a GC holder. If yes, why?
h1b holder can start a company but cannot work for that company without proper authorization from uscis. to get work authorization (for ex. h1 from your own company), some one from that company has to file a petition with uscis. signing such petition is work which you cannot legally do. to avoid this catch-22 situation it is generally recommended to start a company with someone who has unrestricted work authorization like us-citizen or greencard holders or even ead holder would do.
2. What difference does it make if i get money through a payroll or i take the profit and not be on the payroll?
being in payroll means you are actively participating or working for the company which you cannot do without proper authorization from uscis.
getting profit as dividend is just a passive investor. its similar to buying a stock of a public company.
Thanks !!

.