own company on H1

[dyingforgc]

Can a person own LLC (Limited Liability Corporation) on H1-B status?

 

[great guru]

Can a person own LLC (Limited Liability Corporation) on H1-B status?

But should not work for this owned company, unless you have a H1 from your own company. owner should not sponser H1 for him.lf.

 

[dyingforgc]

sponsor won't be sponsoring himself but would spnsor other candidates in future. that would be fine right? When this person owns his company, he would have some income (besiedes his regular H1-B job income), would this be a problem? thanks.

But should not work for this owned company, unless you have a H1 from your own company. owner should not sponser H1 for him.lf.

 

[great guru]

sponsor won't be sponsoring himself but would spnsor other candidates in future. that would be fine right? When this person owns his company, he would have some income (besiedes his regular H1-B job income), would this be a problem? thanks.

Suppose you own a company, to sponser others you have to have a employee (not an H1) to sign the INS papers. INS do background check for this employee.

To sponser, you should have a office, business plan, atleast some balance in the bank showing you are not overnight compnay, if it is a body shopping company, you must have 3 yrs contract for the consultants specifying his/her locations , nature of job etc.

 

[dyingforgc]

great_guru: thanks for the answer. I do understand whatever you said below. I have a way of handling and meeting INS requirements, everything officially.

let's forget about sponsoring people for now but can person own a company (LLC) on H1-B and take official checks on company name. since person being primary member of LLC, can he generate income from his own LLC for him? that would be extra income and my question is; would that be a problem or how to handle this?

Suppose you own a company, to sponser others you have to have a employee (not an H1) to sign the INS papers. INS do background check for this employee.

To sponser, you should have a office, business plan, atleast some balance in the bank showing you are not overnight compnay, if it is a body shopping company, you must have 3 yrs contract for the consultants specifying his/her locations , nature of job etc.

 

[saigc]

great_guru: thanks for the answer. I do understand whatever you said below. I have a way of handling and meeting INS requirements, everything officially.

let's forget about sponsoring people for now but can person own a company (LLC) on H1-B and take official checks on company name. since person being primary member of LLC, can he generate income from his own LLC for him? that would be extra income and my question is; would that be a problem or how to handle this?

person in h1b is better off to form corporation rather than llc due to various tax treatment which trigger immigration regulations.

its better for you to consult good cpa, business lawyer in the state you are planning to incorporate.

h1b professional cannot work for a company (even if you own it) in any way paid/unpaid without proper work authorization from uscis. company has to sponsor h1b for you to work for that company. to sponsor a company needs a human who has the right and proper work authorization. you cannot form a company and sign h1 petition on behalf of the company to sponsor yourself. catch-22.

h1b professional cannot form a s-corporation. s-corporation is formed by usual corporation formation formalities and THEN ELECT "s-corporation" status with IRS. technically you dont form s-corporation you just elect it.

h1b professional can form a regular (general corporation) and be a passive investor and can get profits from than company as dividend (as a shareholder of that company).

h1b professional can form a LLC but due to tax treatment it will have adverse impact on your nonimmigrant legal status if you dont have an ead to make use of.

corporations are taxed as a corporation by default. company has the right to change to s-corporation by formally filing with IRS to elect s-corporation status. election should be made within 75 days from the corporation formation date.

llc are taxed as either soleproprietor or partnership based on single or multiple owners.

being a single owner your llc will be treated as disregarded entity by irs and taxed as soleproprietor. company does not need to file its tax return by itself. you as a single owner of llc will attach business income/loss with YOUR individual tax return. as a single member llc owner you are required to file "selfemployment" tax which violates your h1b status.

if you partner with someone else to form llc then you are taxed as partnership and still need to address selfemployment tax.

llc owner(s) can elect c-corporation tax status by electing it with IRS within 75 days from company formation date.

if for some reason you wish to form llc rather than corporation then your good choice is to elect c-corporation tax status with IRS within 75 days of the company formation. remember electing c-corporation tax status is working which is not allowed without uscis authorization. you are better off to form a corporation with citizen or permanent residents and be passive investor and get your profit share as dividend.

 

[dyingforgc]

saigc: thanks very much for elaborative reply.

United Nations: can you throw your expert advise as a CPA?

 

[catoon]

"if for some reason you wish to form llc rather than corporation then your good choice is to elect c-corporation tax status with IRS within 75 days of the company formation. remember electing c-corporation tax status is working which is not allowed without uscis authorization. you are better off to form a corporation with citizen or permanent residents and be passive investor and get your profit share as dividend."

what do you mean by saying 'remember electing c-corporation tax status is working which is not allowed without uscis authorization'? A llc filing tax return as a c corp needs to file certain forms with uscis? thanks.