starting a C Corp on an H1

N

niravmd

New Member
can i start a C corp on an H1 which i'm using to be the general partner of my Family limited partnership[which in term is used to hold title to my real estate investments].

since we're allowed to invest in all kinds of things on an H1 visa, if i just have a C Corp doing the investing, would that become illegal?

if so, can i have a GC holder be the CEO who gets paid a nominal salary of saying 6-8k /year?
 
Joef is 100% correct

Joef is 100% correct.
There are 2 aspects INS and IRS.
INS would have Qs if you would work for any company without proper H1B / B1 or L1 or any valid work authorization.
IRS is ok as long as you pay taxes.

1> You can start a company. not a problem. And you can be a stock holder in that company. you may be 100% stock holder in that company.

2> On SheelaMurthy.com it is mentioned that you can work for "limited" time and "should not" get any salary without having a proper work authorization from this new company.

3> Also, note that you can invest in any stocks in stock market and pay the taxes on the earnings.

Now question you want to ask yourself is if you open a company, who would work for that company? You cannot work for the same company without proper work authorization. INS may not grant you H1B visa or any work authorization without the company's ability to pay. (If there are some lawyers that can prove to INS that you are going to work thru your company and if they prove to INS that the company would have ability to pay INS may grant you visa. On google I found some sites few years back and also read messages in some cases that people floated their companies and got the H1B visa from their own company. I am not sure of this though!)

But if you find some people who can work for you and as long as they have valid work authorization then you are ok. You can also earn dividends from the profits earned. And file the taxes.

In both these cases talk to immigration lawyer and some CPA with good immigration background.

thanks,
 
Just retain the earnings in the company itself (that is dont pay yourself a salary or dividend) until you get your GC or EAD !.

Without you getting paid personally nothing is reflected in your personal tax return and USCIS has no way to know that you run a business
 
Joe ,the truth is that strategy i suggested works :) , also i dont see it as unethical or something as by running a business he is contributing to the economy !
 
You seem correct JoeF

There is a gray area is working for "limited time". e.g. making business plan or registering a company or getting Tax ID or opening a bank account for the company. Without these things the company would not exist.

Secondly about getting paid. JoeF is right. Donot work for the company in any form without proper authorization. Do get paid in any form.

One Q in this connection though:
Is it ok to have an EAD in your hand? Unless you go out of the country and come back the EAD may not come into effect. Technically you are still on H1B or work visa. What should be done in that case?

thanks,
 
Let me rephrase the Q

What if someone has both H1B and approved EAD? Since this guy is not using EAD, he is technically on H1B.
Q is - Is it ok to start a company and get dividends via company in this gray situation?

At the end of the year, this guy would have to show his dividends for tax purpose. He is not an active person nor working for this company. Just a passive member earning dividends! :)

I guess this should be fine cause most of us invest in stock market. also, we get interests on accrued investments/ CDs in banks. And we declare this at the end of the year. Please note that all these dividends are NOT the source of income in any way!

Hence the Question!
 
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