ESOP / Profit Share while on TN

[EJ886]

Hi all:

After one year with my company, I became eligible for ESOP and profit sharing. I am concerned that if I begin to participate, this might create a (minimal) ownership interest? Though, I think my participation in these benefits would not rise to me exercising a controlling share over the company, and certainly not on my own employment at-will. I know on the form I-129 there is a question about “Does any beneficiary in this petition have ownership interest in the petitioning organization?” and would like to avoid complications on this in the future.

Any thoughts?

 

[nelsona]

This is not a problem. You are simply a shareholder. I'm surprised they forbid you from participating for a year. Most firms want employees to fluff up their stock.

 

[Amberleaf]

No worries. I participated in my company ESPP and received RSUs from my employer while on TN, then H1B, now on GC.
The amount of shares you own is very, very small compared to the number of outstanding shares in the corporation.
This website explains in more detail
https://www.murthy.com/2014/12/23/r...eficiarys-ownership-interest-in-the-employer/

I do recall when opening a brokerage account (like E-Trade in my case) you are asked a few questions, are you a US citizen, are you a Permanent Resident, which you answer No, then you are asked if you are a US tax resident (or something like that), to which I was a little confused. I was in US on TN for less than six months, so the IRS "significance presence test" did not apply yet. I waited until I was in US more than six months before opened the brokerage account, and I could answer "yes" to the US tax resident question and accept my company RSUs. (bonus).

My company offers 15% discount on ESPP through payroll defections, so it is an easy way to make a 15% rate of return.
It depends on how long you own your company stock and company performance of course, so you could make more or less over time.