Currently Employed with Another Company on H1B - Started an LLC on the side...

R

RAKADH

Registered Users (C)
Hello,
I am currently employed full time for a firm and my status is H1B. I opened an LLC last Feb and do some marketing services. I am the sole person involved in running this firm. My LLC has made some money but the expenses far outweighed the income it generated for the year; the firm has made losses for 2005. I have not taken any salary from this firm as I understand that I cannot get paid from any other source besides my current employer.

It is time to file taxes now. And I have two questions:
1. Should I have to file the tax returns along with my W2? (I am married and will be doing a joint filing. I would like to keep these two things seperately, if possible.)
2. I hope I am playing safe with the immigration rules? (As long as I am not reaping any profits from the LLC and I am not taking any salary from it)

Please advise.

Thanks.
 
Any updates

I am also in the same situation but my LLC is breakeven no proft no loss.
 
RAKADH said:
Hello,
I am currently employed full time for a firm and my status is H1B. I opened an LLC last Feb and do some marketing services. I am the sole person involved in running this firm. My LLC has made some money but the expenses far outweighed the income it generated for the year; the firm has made losses for 2005. I have not taken any salary from this firm as I understand that I cannot get paid from any other source besides my current employer.

It is time to file taxes now. And I have two questions:
1. Should I have to file the tax returns along with my W2? (I am married and will be doing a joint filing. I would like to keep these two things seperately, if possible.)
2. I hope I am playing safe with the immigration rules? (As long as I am not reaping any profits from the LLC and I am not taking any salary from it)

Please advise.

Thanks.
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Wrong, you are running your LLC. That means working. Unless you could prove later that your LLC is running by a hired CEO who is US citizen or GC holder.
 
JoeF said:
As was already mentioned, you are violating your H1 status.
The important thing is that you can not work for your own company, not even for free, unless you have the appropriate work authorization.
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JoeF,
Thanks for the clarification. I guess I misunderstood the rules to begin with. What do you think should be done now? I have no issues in shutting my business down, but I am not sure what I can do about the taxes now.
 
in an LLC or S corp tax liabilities are passed on to the members of the same. that implies that they are individually responsible for paying any taxes if they are liable to do so. Taxe liability is only when profits or dividends are gained from an LLC or S Corp situation. I would say since you had a loss and made no profits or any money, u wouldnt need to disclose any in that situation. u wud be in a fix if you were caught operating the LLC by USCIS but presumed u havent yet been. I would discontinue work and make sure an officer is appointed who can legally run the LLC on ur behalf. Tax liability is your ownly issue and a CPA should be able to help you out.
 
newbies said:
Wrong, you are running your LLC. That means working. Unless you could prove later that your LLC is running by a hired CEO who is US citizen or GC holder.
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I agree with the above.
Can the Operating Person be a person on EAD? i.e. someone whose 485 is pending but he has received EAD?
 
anyone who is legally qualified to work in the United States. The company has the right to appoint an officer based on merits decided by the company solely. The USCIS or any other organisation cannot dictate the terms other than the board of directors off course.
 
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