AC21- "EMPLOYMENT"-defination

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I have my I 140 approved [3 months], I 485 pending since Aug 05.
I want to change employer so now I can do so by AC21.
But, new employer is not willing to offer W2 & instead ask me tp work on 1099.[ working on 1099 is considered as an indepandent contractor & can independant contractor be consider as an employee?]
Can I work with the new employer with I 1099?
some one suggested I can set up my own corporation & I should be on w2 of my corporation & through my corporation I should work on 1099 with the new employer.
Is it possible this way? If yes ,do I need to transfer my H1b to my corporation? Also let me know possible risk factors with this issue.
My new employer doesnot wish to provide w2 mainly due to social Sec. & workman comp. contribution issue.

Please advise me.

 

[TheRealCanadian]

Can I work with the new employer with I 1099?

The latest AC21 memorandum that permits self-employment did so for precisely this kind of case. If you can demonstrate that you are working for a US entity just merely on 1099, you should be fine.

some one suggested I can set up my own corporation & I should be on w2 of my corporation & through my corporation I should work on 1099 with the new employer.

You probably should do this for tax reasons once you get your GC, but since you are not a Permanent Resident you cannot create an S-corp.

Is it possible this way? If yes ,do I need to transfer my H1b to my corporation? Also let me know possible risk factors with this issue.

Your corporation could not petition for an H-1B for you anyways; don't bother. The huge risk factor you face is if USCIS' guidelines on self-employment change from what was stated in the last Yates memorandum.