1. Can I be a passive member of LLC with my American partner while I am on H1B visa? I have read many posts which say only C-Corp is allowed for H1B visa holders. Is there any reference to OFFICIAL DOCUMENTS regarding this?
There are two kinds of corporations: C-corp (the "standard" one) and S-corp (pass-through taxation). For S-corp there are certain limitations, one of which is that the shareholders must be US citizens or residents. However, it doesn't mean
permanent residents. As an H1b person, you're a US resident for tax purposes, so you can be a shareholder in an S-Corp as well. However, once you lose your immigration status you must sell your stake in the corporation. For LLC the limitations are per state, from the Federal perspective LLC is a disregarded entity and is treated as partnership. You must check your state statues for limitations on LLC membership, but there are probably none which would prevent you as an H1B person from being a member. Disclaimer: this is in no way a legal advice, consult an attorney to be sure.
2. How to write it correctly in LLC or C-Corp agreement? What words should be there? Any Samples?
There are many samples and templates on line, some for free and some for a small fee. Check LegalZoom, Nolo, etc. However, you must edit the templates to fit your and your partners' needs and remember that this is a legal binding document for you, your partners and the company. So better get an attorney to interview you all and draft an agreement for you.
3. Imagine I get dividends, how do I file them in Tax return? Schedule D? Schedule C?
Dividends go on schedule B. Distributions from LLC/partership/S-corp go on Schedule E with 1065-K.
4. Is there any way to re-invest my dividends into the development of the company and avoid having this income in tax return? So I can accumulate it till the moment when I get my GG?
If its a corporation - it can retain earnings (consult a CPA re the differences between a C-corp and S-corp). For LLC/Partnership - you cannot retain earnings, you'll pay taxes on all distributed income, even if some is in fact left in the company for further development.
5. Any tips how to stay safe and not to jeopardize my status and CG processing?
You can only be a passive investor. You cannot be a managing member of the LLC (if you're the only member - you have to hire a manager), and you cannot be a general partner in a partnership or an officer or director in a corporation. Consult an attorney for more precise answer and details.
