Hello, I was reading the articles posted in this forum but found somewhat confusing to me.
1. Passive Investor:
What does this exactly mean? By definition, it basically means an investor who does not participlate in active management role, right? For example, no day-to-day management, no decision making, no sign-off, things like that. But, the definition appears to me that it is all about the management. So, as long as you don't manage the company (i mean LLC in this context) and don't make any decision, you are a passive investor? What about the investment itself? What do you invest? Is it money only or could it be some amount of time (of course, no salary for it or anything like that), or some amount of work (of course, no salary for it or anything like that as well)? Suppose you don't have any money to invest but you have some skills or ideas that can be turned into some kind of fortune later. Then, Is it still considered a form of passive investment to put such skills or ideas to a LLC company?
2. Profit Sharing:
I'm pretty sure every H1B holder can be a member of a LLC and can get some shares of the profit later. But you are not supposed to work for the company. So, here is a dilema. How could you get shares without working? So, it is like a bread in a picture. Of course, you can put your money as an inverstment, but what if you can only put time, skills, ideas to the company (because you are smart although you are poor)?
3. Membership:
Suppose a LLC company whose members are all US citizens and they want you to be a member of the company. But, because you are a H1b holder (with No LC, No EAD, No GC) of other company already, you cannot work for the company (let's forget about another H1b sponsor here). But, you need to help them and contribute something to get shares later. In this situation, if you are not listed as a member of the company in the company profile submitted to state goverment or whatever (and henc no voting right or anything. Basically you are not a member of the company and you have nothing to do with the company), but all other members are agreed by signing a letter (to be notarized) to give up certain portions of their shares to you later when you get authorized to work (EAD or GC) (so you put some effort (no money still) to help the business to run based upon the belief/trust), is this still considered to be legal? It is like a ^Hidden Member^. It seems to be ILLEGAL because you will have to work for the company in any way during your H1B period, but it also seems to be LEGAL because you are not a member or employee and even you have nothing to do with the company. Unpaid for both cases. So, i'm confused. Maybe i was thinking too much
4. Getting an investment:
Say, you are a young and smart and good prospective but poor person, and someone who has some money wants to help you in financial way. Can you take the money from the individual and pay back later? It looks a stuid question but in the context of immigration, H1b, LLC, membership, etc. what do you think?
Sorry for too many questions from an ugly mind. Last night i watched shrek2, I was laughing really hard.
Thanks in advance.
1. Passive Investor:
What does this exactly mean? By definition, it basically means an investor who does not participlate in active management role, right? For example, no day-to-day management, no decision making, no sign-off, things like that. But, the definition appears to me that it is all about the management. So, as long as you don't manage the company (i mean LLC in this context) and don't make any decision, you are a passive investor? What about the investment itself? What do you invest? Is it money only or could it be some amount of time (of course, no salary for it or anything like that), or some amount of work (of course, no salary for it or anything like that as well)? Suppose you don't have any money to invest but you have some skills or ideas that can be turned into some kind of fortune later. Then, Is it still considered a form of passive investment to put such skills or ideas to a LLC company?
2. Profit Sharing:
I'm pretty sure every H1B holder can be a member of a LLC and can get some shares of the profit later. But you are not supposed to work for the company. So, here is a dilema. How could you get shares without working? So, it is like a bread in a picture. Of course, you can put your money as an inverstment, but what if you can only put time, skills, ideas to the company (because you are smart although you are poor)?
3. Membership:
Suppose a LLC company whose members are all US citizens and they want you to be a member of the company. But, because you are a H1b holder (with No LC, No EAD, No GC) of other company already, you cannot work for the company (let's forget about another H1b sponsor here). But, you need to help them and contribute something to get shares later. In this situation, if you are not listed as a member of the company in the company profile submitted to state goverment or whatever (and henc no voting right or anything. Basically you are not a member of the company and you have nothing to do with the company), but all other members are agreed by signing a letter (to be notarized) to give up certain portions of their shares to you later when you get authorized to work (EAD or GC) (so you put some effort (no money still) to help the business to run based upon the belief/trust), is this still considered to be legal? It is like a ^Hidden Member^. It seems to be ILLEGAL because you will have to work for the company in any way during your H1B period, but it also seems to be LEGAL because you are not a member or employee and even you have nothing to do with the company. Unpaid for both cases. So, i'm confused. Maybe i was thinking too much
4. Getting an investment:
Say, you are a young and smart and good prospective but poor person, and someone who has some money wants to help you in financial way. Can you take the money from the individual and pay back later? It looks a stuid question but in the context of immigration, H1b, LLC, membership, etc. what do you think?
Sorry for too many questions from an ugly mind. Last night i watched shrek2, I was laughing really hard.
Thanks in advance.