H4 starting an LLC

[krzaidi]

Hello,

I am on a H4 visa and am interested in forming an LLC in partnership with an American citizen. It will be a real estate development firm, we are both going to invest 50% each and expect to split the profits/losses 50/50 too. Her role is going to be managerial and My role is going to be investor. The LLC will elect to be taxed as a corporation (so the LLC will retain any profits and therefore pay taxes on it).

I will not be involved in the running of the business and wont be withdrawing any salary. However, as co-owner of the LLC my name will be on the bank papers (I have a social security no# from my student days) and we will require signatures from both partners for any checks that need to be made.

Will I have any problems in doing this? Any insights will be appreciated.

Thanks

 

[laborvisalaw]

Krzaidi-

Not sure if you found answers to your question, I see that you posted your question about a week ago. We have helped and advised a number of foreign individuals who have sought to open a business in the US but are not allowed to work. You should carefully consider the type of business you are seeking to open and the precise nature of your duties.

While you cannot work (note that 'work' is construed very broadly by the USCIS) for a US company, you can be a passive investor. The difference between "work" and "passive investor" is sometimes pretty blurry and can depend on the particular facts. If, for example, you engage in an activity which would, if undertaken by an unrelated person who is authorized to work, be normally paid, then most likely the activity would be considered work and you cannot, under H4 visa, do it. There are many other factors that go into the analysis.