Becoming partner of LLC or shareholder while working on TN-1

A

avirex

New Member
Hello. I have been working for my employer on TN-1 status for about 6 years now. I was approached to take part in a small start-up which is going to be an LLC registered in Georgia.

Now the question is whether I can actually be an officer/partner in this LLC or if I need to be simply a shareholder? My concern is that I know I'm not allowed to work for any other company outside of the company who is sponsoring me, but what about operating a business?

Also regarding the taxation matter, should I file as a partner (schedule K-1) when it comes to profit sharing or do I need to simply be a shareholder who gets paid dividends. I'm not sure if this would impact the TN-1 visa, but I assume if the IRS notifies the DHS that I'm making money "on the side" it will raise a flag...?

I hope that makes sense. Thanks for any advise.
 
You may only be a silent non-controlling partner.

The IRS does not notify IRS of anything. This would all be looked at if you, say, decided to become a GC-holder.
 
AFAIK you cannot be working for another company, making money on investments is not a problem. so don't be on payroll.
 
It is not only a matter of payment, it is also a question on unauthorized work -- work which would be in violation of your current TN status, which would be the case if you are not a silent partner. It doesn't matter if you are on payroll or not.
 
nelsona said:
It is not only a matter of payment, it is also a question on unauthorized work -- work which would be in violation of your current TN status, which would be the case if you are not a silent partner. It doesn't matter if you are on payroll or not.
Click to expand...

Thanks for the great information, it is very helpful.

So in our LLC Operating Agreement I will be listed as a "non-working" and "non-controlling" partner. However this would not impact my ability to take profits from the company. Is there anything else I should take into consideration?

I figure as long as I'm not issued a W2 or anything like that, I should be okay. What about a 1099?
 
1099 dividends are fine.

"unauthorized work" - i believe unauthorized employment is the problem. because you can volunteer at your local meals on wheels and not be employed by them if you want on your h1.

so.. if you went in and sat for a board members meeting for which you arent employed or paid... its still work right? i think thats fine.
 
Volunteering is authorized under all these statuses. So, yes, it is the matter of performance of unauthorized work -- not unauthorized payment or even unauthorized employemnt -- WORK.
 
hmm.. interesting.

i always thought they word used by uscis was employment. could you point me to your sources for my learning.
 
I'll leave it for you as an exercise, since it was not your question. Let us know what you find out.
 
i didnt find anything that used the word "work". only "employment". hence i assume attending a board meeting can be thought of as work, but not employment since you are not employed.
 
Attending, as a silent observer, yes. Not paid, not making any decisions. Better just to go to a sporting event.
 
nelsona said:
not making any decisions
Click to expand...

yeah im just not sure about that.. even investing money is making a decision. it might be better to consult an immigration attorney about this since we are just people on the internet and interpretations can be varied.
 
Not making any business decision. I invest in McDonald's, but i don't tell them how much to charge, or when to bring back the McRib.

Silent partner is silent. Understand?

Of coure you should consult a lawyer. But, of course, you will ask more than one lawyer, and are bound to get 'varied interpretations', and the privilege of paying for those.

maybe those are the LLC's you should invest in!;)
 
a lot of stock gives you voting rights to elect the board of directors. if you own enough mcdonalds stock to influence that, you can tell them when to bring back the mcrib.

voting = making a decision.

not so silent anymore.
 
voting for a board member is not decison-making. A person on TN could not be a board member.
Are you finished?
 
My point is that B status has the same restrictions on employment as a TN does for an entity other than the sponsor, and USCIS and CBP have no issues whatsoever with shareholders using this status to vote and attend AGMs.
 
You must log in or register to reply here.
Top