Working on EAD for my company

[EAD_Question]

Hi everyone,
I've setup a company in India -Private Limited(equivalent to LLC I guess) for selling software products & software consulting.The company have not started functioning yet, just completed the registration process (meaning no employees & zero products in the market currently). I'm one of the directors of the company.
Recently I got my EAD, my question is,
1. Do I need to get any paper work done, to start working for this company from USA. I'm in India now, when I get back to USA can I just start working for this company, without incorporating a company or anything.

2. Do I have to file tax returns in USA?

3. If I need to hire any employees in USA, what is the procedure?

I know a CPA will be able to answer these, but before I contact a CPA, I just need some inputs from any one who has an idea about this.

Thanks in Advance for any help.

 

[Studious]

Hi everyone,
I've setup a company in India -Private Limited(equivalent to LLC I guess) for selling software products & software consulting.The company have not started functioning yet, just completed the registration process (meaning no employees & zero products in the market currently). I'm one of the directors of the company.
Recently I got my EAD, my question is,
1. Do I need to get any paper work done, to start working for this company from USA. I'm in India now, when I get back to USA can I just start working for this company, without incorporating a company or anything.

Yes, if you don't wish to form a subsidiary company in USA.
(Also remember, once your I-485 has been filed and you have an EAD, you can run the company yourself, but you have to be careful to keep your main job.)

2. Do I have to file tax returns in USA?

If you don't form a company in USA, you don't have to pay taxes in USA. You just have to comply with the Indian tax laws.

3. If I need to hire any employees in USA, what is the procedure?

You can hire them and account the salary that you paid to them as expenses of Indian company.

I know a CPA will be able to answer these, but before I contact a CPA, I just need some inputs from any one who has an idea about this.

Thanks in Advance for any help.

 

[EAD_Question]

Thanks Joef. I need one more clarification. If I am not setting up a branch in U.S, is it legal for me to work for this company. Do I need to have some kind of document for tax purposes and all that.

 

[Studious]

The OP apparently has an EAD, so the work authorization is there.

Ofcourse, I know he has EAD. I mean (by my statement in the parenthesis) that even if he forms a subsidiary, he would not be having problems in running his company.

Without work authorization, you can't work for any company while in the US, regardless if you work remotely for a company outside the US..

I have my company in India, I make all the decisions and I work for it from U.S.A whenever it is necessary in addition to maintaining my visa status in U.S.A. I did not start my GC processing yet. So, tell me what kind of a visa (work authorization) do I need to work for my company in India? I will continue to work for my Indian company without USCIS work authorization as long as I am present in U.S.A. Tell me in what way USCIS could hurt me?

Wrong. If you are a US tax resident, you have to pay US taxes on your worldwide income. See IRS Publication 519, Tax Guide for Aliens. There are tax treaties that may work that keep you from double taxation.

I earn substantial amount of income (not certainly a negligible) in India in the form of rents, dividends, and interest. And my cousins in U.S.A., many of my friends, and many others on this forum earn income in their home countries. All of us are tax residents as we have been present in U.S. for atleast 183 days of the current year. But none of us pay taxes in U.S.A. on the income that we earn abroad. All of us would continue doing that in the future. In what way IRS could hurt us?

Hmm, wrong again. If a foreign company has employees in the US, it obviously has a US branch. So, the usual US tax laws apply.

Okay, I have an Indian company, and I get some of its work done through others in U.S.A. and I show it as expenditure when I do accounting and file taxes for my Indian company. I would continue doing that in the future also. In what way could IRS hurt me?

As you said I form a company in U.S. and hire employees in U.S. to work for Indian company and the company does not earn any income in U.S. The company only has expenditure and in turn losses every year. Don't you think it is a fraud on the part of IRS?

I know we have to comply with the laws. But no one complies with all the laws in this world and USCIS and IRS and other law enforcement agencies are aware of this fact. And they could not do much about that.

The problem with you is you make simple things complicated. If you don't know how to get around the law, follow the law. Smart people get around the law.

By the way, which country are you from?

 

[Studious]

Thanks Joef. I need one more clarification. If I am not setting up a branch in U.S, is it legal for me to work for this company.

Ofcourse, you can work for your company even if you don't have EAD and who can keep track of it. It is something like you are doing your household work. Be brave. If you are scared of everything, you would not grow in life. When you become member on this board, the first thing you have to learn is to ignore some posters on this board, as they just discourage people for nothing. They don't play around the law and don't let others play around the law.

Do I need to have some kind of document for tax purposes and all that.

 

[nato]

You look all confused..and also making a recipe for loosing your GC

Don't mess up for your GC to get minor tax gains, you may have to regret. one has to give w2, tax records for 485 and you want to play with it?

Thanks Joef. I need one more clarification. If I am not setting up a branch in U.S, is it legal for me to work for this company. Do I need to have some kind of document for tax purposes and all that.

 

[Studious]

You are illegal.

No problem

So, say your GC goodbye...

We will see that.

Unless you lie to CIS,

whatever

which could result in a lifelong ban.

"Employers lie in every H1B petition and every GC petition." I will not explain to you and waste my time.

Does everyone get a lifelong ban? Are there no immigrants based on employment in this country?

One thing for sure, you never cease to amaze me with your posts. He he he

 

[EAD_Question]

Hey I didn't know that my post had started a debate here. By the way, Studios your post is misleading others. When I posted here I was looking for the legal way of doing things. I have many friends who are on H1 and run companies in India, and I don't think any Indian would need advise on that.

Yes, you are correct in saying that all of Joef's posts are discouraging, I'd felt that way when I was on H1. Now that I have an EAD, I didn't find his post discouraging.

In fact I know that any tax resident in USA has to pay tax for International Income. But I was under the assumption that you have to pay tax only if you bring that income inside US for spending here. Other wise you have to change the tax laws in USA.

In USA no one supports their parents and umpteen number of relatives. For us Indians, if we are making money in India, we are spending double that money too. Just think of one vacation to India - accounting all the expenses involved, it would come close to 10,000 dollars. And more than that we support our parents and younger siblings too. But can we itemise that in the tax returns - no, parents are not considered as dependents. Well, then how come IRS want us to pay returns on our international income.

Joef, I don't know if you are aware of the fact that thousands of Indians pay social security taxes, but will never recieve the benefits. Even though Indian government have been trying to rectify this, US govt. so far has not co operated with us.

These are just a few examples of US govt not playing it by the book. I had no intention of breaking any US law, but I strongly feel that the laws are not very fair and hence if people try to get around it, I don't blame them.

 

[nato]

The big Q is if you want to take a risk on GC, which is getting tougher every day

Hey I didn't know that my post had started a debate here. By the way, Studios your post is misleading others. When I posted here I was looking for the legal way of doing things. I have many friends who are on H1 and run companies in India, and I don't think any Indian would need advise on that.

Yes, you are correct in saying that all of Joef's posts are discouraging, I'd felt that way when I was on H1. Now that I have an EAD, I didn't find his post discouraging.

In fact I know that any tax resident in USA has to pay tax for International Income. But I was under the assumption that you have to pay tax only if you bring that income inside US for spending here. Other wise you have to change the tax laws in USA.

In USA no one supports their parents and umpteen number of relatives. For us Indians, if we are making money in India, we are spending double that money too. Just think of one vacation to India - accounting all the expenses involved, it would come close to 10,000 dollars. And more than that we support our parents and younger siblings too. But can we itemise that in the tax returns - no, parents are not considered as dependents. Well, then how come IRS want us to pay returns on our international income.

Joef, I don't know if you are aware of the fact that thousands of Indians pay social security taxes, but will never recieve the benefits. Even though Indian government have been trying to rectify this, US govt. so far has not co operated with us.

These are just a few examples of US govt not playing it by the book. I had no intention of breaking any US law, but I strongly feel that the laws are not very fair and hence if people try to get around it, I don't blame them.

 

[EAD_Question]

You obviously have no idea how much money Latinos send back to their home countries, for example.

I did not mean the latinos, latinos did not make the laws in this country. If you ask them, I guess they will express a similar view point. And I know many latinos who are rich enough to go on vacations to Hawaii, let alone their home country.

So, please, don't try to argue with things being so hard because you have to support relatives...
Sorry for rambling, but this "it is oh so hard" is just BS.

I didn't say it is hard because we have to support our relatives. I said IRS doesn't allow us to list this in our tax returns. I said that's not fair. Perhaps, you should consider getting your vision checked, pal.

You chose to live in the US, you weren't forced to.

Yes, we came to see how things are in this side of the world, that doesn't mean that we are sticking here. We are planning on moving to one of the European countries, to check out the weather there.

For India to participate in such totalization agreements, all India would have to do is introduce a social security system similar to what the US and a bunch of other countries have. If Chile and South Korea can manage that, why shouldn't India be able to get such a system off the ground?
Essentially, it is tit-for-tat. Your country provides such benefits to US citizens, and the US will provide such benefits to citizens of your country...

India has a very good pension system called the Provident Fund. I didn't know that it has to be called the SOCIAL SECURITY for US to recognise it. And I have never heard of US asking India for benefits for US citizens. If it has, I'm sure Indians will try to accommodate them, at the same speed that US is trying to..

Besides that, whining about how unfair things are doesn't change anything. If you want to change things, work with the politicians on both sides, or become a politician yourself.

Don't worry, you'll soon hear about me. I just need to get my financial situation right before I step into politics.

 

[EAD_Question]

The US as superpower has more clout here than other countries. There are probably relatively few US citizens in India, so it doesn't matter much for the US.

Are you sure the situation is going to be the same 50 years from now? I don't feel so. Already I see so many project managers flying to India to check out their offshore units.

If you want such an agreement, you better get the Indian side to move.

The case is not about a lack of initiatives from the Indian Government, but it could be that this superpower may not remain powerful enough to pay SS benefits to its citizens once it parts with the contribution of H1Bs.
Check this out if you are interested in reading further. http://www.zazona.com/ShameH1B/JDNewsArchive/2003/2003 06-16 India Asking for FICA refunds.txt

I have dabbled in politics in my home country before focussing on my degree... Once I am a US citizen, I can well imagine going back into politics CIS is obviously completely screwed up and urgently needs reform...

Things have improved slightly I must say. But anyways I look forward to working with you.

 

[EAD_Question]

I don't check if the site owner is Conservative or Democrat before I read its contents. But obviously you visit only the Democrats web sites. If that link didn't appeal to you because the site owner is anti immigrant, here are some links from Indian sites.

http://www.rediff.com/news/2001/apr/17us2.htm
http://economictimes.indiatimes.com/cms.dll/html/uncomp/articleshow?msid=22062
http://infotech.indiatimes.com/articleshow/msid-1166307,prtpage-1.cms

Perhaps you don't realise that you don't sound too immigrant friendly either. I'd seen that the previous site was telling a different side of the story, just wanted to show you why the anti-immigrants wouldn't give us our fair share.

 

[EAD_Question]

It has everything to do with not blindly believing what is on the Web. It has everything to do with educating yourself, and not following demagogues, be they right or left or up or down, or what-have-you.

Whether you believe it or not , it is a fact that the H1Bs have to pay thousands of dollars as social security tax every year and are not going to recieve any of the benefits. But because each of these people have not put up web sites proclaiming this fact, I had posted some links from some of the well respected Indian sites.

Pointing to newspapers isn't much better in that respect.All that these sites have is some anecdotes, cut, sensationalized and distorted to fit into the newspaper format and to help the newspaper sell more copies.

I guess you are referring to the type of tabloids that drove Princess Diana to her death. Well, at least in some parts of the world where I have been to, newspapers with quality content do exist. It's a pity that you are yet to find even one.

 

[EAD_Question]

And the "respected" sites, in their efforts to sell advertising, sensationalize things, and fail to mention that the H1s, once they become PRs and have 40 credits, do qualify for social security benefits. Thanks for making my point...

All of them mentions that you'll get the benefits after ten years. What is your problem????
Anyways you are fit to enter the US politics.

 

[EAD_Question]

Buddy, either you can't read or you have a serious problem of wanting to have the final word in every argument - not very healthy. When was the last time you checked your B.P.

Just answer one simple question. What percentage of H1B's really do get a chance to work here for 10 years. Well I'm sure that you are consulting your 'sources' now. Hope they are of better mental health than you.

Best of luck, pal. I don't think you will go far in your political career. Oh, but in US you never can tell.

 

[Studious]

I have dabbled in politics in my home country before focussing on my degree... Once I am a US citizen, I can well imagine going back into politics CIS is obviously completely screwed up and urgently needs reform...

May god bless America.

When you become member on this board, the first thing you have to learn is to ignore some posters on this board

 

[EAD_Question]

Most, because most go for a GC...

That, Mr.Smart Budding Politician, leaves some...

 

[EAD_Question]

Of course, I forgot that all Indian H1B's register with you as soon as they enter the country, when they apply for Green Card, and then when they leave after 10 years. Do they also tell you when they start recieving the SS benefits.

 

[EAD_Question]

And now we're back in the kindergarten.

 

[qwertyisback]

And now we're back in the kindergarten.

EAD_QUESTION, that guy has lost credibility in all of the forums, so he is busy in cluttering this forum with all of his sick ideas. And its no surprise to me that he argued like idiot with almost every member on these forums. I don't understand why moderators allow him to post craps all the time. But anyway who cares. Just filter the crap posted by him and you will be good.

And here goes smile again for those who missing it for a while