Start an LLC with H1 & H4visa owners claim business losses on 1040 Schedule C on IRS Tax return

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kapoorrishabh

New Member
I am on H1B visa and my wife is on H4 visa in the US. We want to start a LLC with the two of us as member. I understand that we can open/start an LLC on our visa status. We should not be working / drawing salary from this business. We are planning to appoint the CEO of this company who will manage the day to day operations of the company from India. The person will be based in India and will be working for this company from there. Since the main operations of the company would be ecommerce and web / internet website this can be possible.

I understand that me and my wife will be passive investors in this llc and will not work/gain anything from it.

My question to you is that as business owners are we allowed to claim business losses / profits on 1040 Schedule C on our IRS tax returns for setting up and running the LLC?

Is Schedule C 1040 considered as self employment and not investing into a business? If Yes, then according to the H1 and H4 visa rules we can not be work for any other business other than who has sponsored us on the H1 visa.

Is it beneficial to start a S Corp rather than a LLC because the S Corp will be taxed as a corporation and we can make the case that this is an investment rather than a self employment?

Thanks for your help!!! Your help will be very much appriciated..

Thanks

Rishabh & Priyanka Kapoor
Richmond, VA
 
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