C-coproration and H1B. Need help.

#1
Hello All.
I am in US on H1B visa, and my wife has H4. We just applyed our I-140 I-485 and yet non of them is approvel, looks like there is long time to wait.
I want to start my own business, and i spent quite a time doing a "homework". Reading all information about C-corp. S-corp. LLS and other related articles. I could not find all answers and this is why i'm starting my own thread.
As far as i understand i may not form an S-corp. simply because it can be formed by US citizens or permanent residents with a Green Card only.
I also can not form LLC corporation because even thought if it can be formed by non US citizen it requires filing of special additional form in my tax return(sorry can not recall it's name) that can give me problems with INS.
My only choice can be a C-corporation and i can not be active involved in business operation, i can be the passive investor only. In my case i will be the owner with 80% stocks. I will have a partner with 20% stocks who will be doing all job, he wil be signing invoices for clients, he will be writing checks, he will be even going to the postal office, he will be paying money to CPA to get out tax paperwork done annualy, he will be doing just everythings.
I know that there is a double taxation issue, we will have to pay company's own taxes first, and then after we got our dividends we will have to pay personal taxes in our annual tax returns. That all is no problem. I understand that.
I even already found a CPA who will take care of registration, then will take care of bookkeeping and tax returns and we even already pre agreed with his prices.
Everthing is ready to deploy and i want to register my company and start business asap. But i would not start it until i 100% sure that everything is legal and not violating my visa requirement.

But, there is something that i can not find answers before take a serious step and actualy register my company and this is why i'm here asking you all for informational help.

So the dilemma is:
(let's go step-by step)

1.To register C-corp i need to found a name, address, decide how many shareholders and how do we split stocks. Then file the papers to registers company and pay some registration fees. Then we will need to file to IRS to obtain an TAX identification number. What address should i put? If i put my address then can it give me a problems with INS in future? When we pay for registration, i will cut a check or use my credit card for that, am i allowed to do that? When we apply for tax identification #, who technically do that me or my partner?

2. The next step would be the bank account opening for our company. I know i will have to show them all information about company tax ID, then sign the papers. Am i allowed to do that with my H1B visa? Can that popentially be a problem with INS?

After that everything looks pretty smooth to me, we just do our business, keep all financial records, CPA will take care of all tax stuffs. We use our bank account to receive money from clients or pay money to contractors, we got our dividends at the and of the year.. etc...

Is there anything else i shoud be aware of? Or did i miss something?

Will i have the right of making strategical desigion of what direction does company go? If i have 80% stocks then technically i am the desigions maker and if i wll decide that company must disappear or get another share holder so be it, right?

And.. here is the second part of my post:
As i mentioned in the beginning of my post, as far as i know, i may not open LLC company being in H1B visa because it requires filing of some extra form with my tax return that can potentially be a problem with INC in future. I found that information when i was surfing internet and reading all posts relates to business opening being on H1B visa. Is that correct? What is that form and why it can give me a problems?

I really really appreciate any information, please help me to do everything right.

Thank you.
 

praveensg

Registered Users (C)
#3
Can some lawyer on this forum or from the offices answer the above queries and bring closure to these issues for good? After thousands of threads in this forum, these questions are still lurking around and no answers seem to be found. A lot of people visiting these forums have these same exact questions but no suitable answers. Please answer these queries and make it a sticky or something so that everyone references the same thread in the future without having to ask the same questions again n again :)
 
#5
Are you sure that an H1B cannot start an LLC?

this is what i found!
http://answers.google.com/answers/threadview?id=731971

Also, I have seen a lot of members on this board who have formed their own LLCs
I am not sure i just know that when someone have income from C-corp dividends he claims it in Schedule D of tax return and that does not make any concerns to INS in if they will pull out tax returns and see that.

But as far as i've heard, when someonce got his dividends from LLC he must claim that income in Schedule C of tax return even thought if technically was not self-emplymentand, so that can potentially be a problem with INS, because if they wil pull out a tax returns and see that, that might have additinal questions to an H1B holder.
 
Top