Starting a business after I140 approval

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sakra

New Member
Starting a business in US

I wanted to know at what stage can an individual start a business in US. Can a business be started on I140 approval and with an EAD?

Also, I have heard that one can start a business on H1B as long as one does not gain income through it. So can I start a business with my partners on my H1B and just be on the advisory board without any financial gains? I am hoping to start the business without my H1 status getting cancelled. I could join the business once I get my Green Card.
Any suggestions would be highly appreciated.
 
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Find the following Legal situations to start a Business ...
(I am talking about IT/consulting business, I don't know about NON IT business)

1) Starting/owning business on H1B status is legal 100%.
It's Legal to have/own your company on H1B.
Start with "C" corp and chage to "S" corp after a year.
But, you should not be on your OWN PAYROLL. You are eligible to Process H1B's for somebody even.

Your situation! Your share from your/partnership company Can be directed to your H1B employer as Corp to Corp. Get as a salary from your H1B Employer. This is one way to get your money from your/own company.

2) Starting business on EAD status.
It's Legal to have/own your company on EAD.
Start with "C" corp and chage to "S" corp after a year.
But, you should not be on your OWN PAYROLL. You are eligible to Process H1B's for somebody. Your company's income can be Drwan as your wife's salary assuming that your wife is on your company payroll.

3) Starting business on Green Card status.
This is pretty much straight. You can be on your payroll. All your company income will be taken as your SALARY.

Hope this information will work for you.

-Hari.
 
Re: Bandaruh - Starting a business in US

Thank you Hari. The information you have provided will be of great help. I am starting an IT company so this information is very relevant to what I need to know.
 
starting business before green card but with unresticted EAD

bandaruh said:
2) Starting business on EAD status.
It's Legal to have/own your company on EAD.

---Dear Hari,
I am a little bit confused about your post.
Can I start LLC or S without waiting 1 year?
1) Why you are mentioning only C-corp ?
I filed I-140 EB-1A (filed from myself, Extraordinary ability)
Approved ~ October 2003. Now I am on EAD with "none" restrictions.
2) Can I be employed in my company ?
My I-485 details are (Concurrent file I485/EAD/AP)

RD 03/26/2003
ND 04/04/2003
EAC-03-140-xxxxxx
FP1
FP2
EAD1 06/05/2004
EAD2 06/02/2004 (extended for 8 month in local office without gap)

Start with "C" corp and chage to "S" corp after a year.
But, you should not be on your OWN PAYROLL. You are eligible to Process H1B's for somebody. Your company's income can be Drwan as your wife's salary assuming that your wife is on your company payroll.

3) Starting business on Green Card status.
This is pretty much straight. You can be on your payroll. All your company income will be taken as your SALARY.

Hope this information will work for you.

-Hari.
Click to expand...
 
---Dear 15th_year_in_US,
>>I am a little bit confused about your post. Can I start LLC or S without waiting 1 year?
>>1) Why you are mentioning only C-corp ?
-->Answer: To start a "S" corp, you should start company between Jan-Mar.
After that if anybody starts, normally they go for "C" corp. Since it's easy to start (get running) and convert to "S" later on.

Refer to http://www.bizfilings.com/ OR consult your Accountant for more details.

>>I filed I-140 EB-1A (filed from myself, Extraordinary ability)
>>Approved ~ October 2003. Now I am on EAD with "none" restrictions.
>>2) Can I be employed in my company ?
>>My I-485 details are (Concurrent file I485/EAD/AP)
-->Answer : NO. You can't be on your Payroll right now. You are not a GreenCard holder. Since your sponsorship is STILL going. You are not Independent right now/GC process is still going on .
But, you can work multiple jobs and get Paychecks from different employers. But, not from your company. IRS/INS Rules are really funny and starge boss.

Good Luck.
 
Anyone can start a business in US even my dad in india :) ... But one need some sort of work authorization to operate the business in USA. So on a H1B you can start a business but have to hire someone to be the CEO/Manager ...But i will suggest just to be a passive investor by partnering with other citizens, PR's

I beleive bandarah gave wrong information regarding business on EAD . You can very well start and work on a business and even draw salary as long as you are also working for the sponsoring company !...But if you are married then as bandarah suggested its better to make your wife to draw the salary just to avoid any questions !


C-corp , S-corp and LLC are just different corporate structures each with its pros/cons ...Generally for a small business its better to be a LLC or S-corp where the income passes to you and you pay tax on it with your 1040 . But with LLC you pay something called as FICA tax (self employment tax) but with S-corp you can minimise it (by income splitting) ....

But the problem is an S-corp can be started only by a PR or citizen , so if you are starting business in EAD its better to start an LLC .
GoodLuck ...
 
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Starting a Business on EAD: Which is better

Hi,
My and my wife's EAD and I140 are approved. My wife wants to start business (after resting at home for 6 years) without waiting for I485 approval. I read in this forum that anyone can start business in USA. We have 3 options. Which one is better and what would be the impact on I485? I would appreciate your help.

1. Start business based on my wife's EAD:
a. She doesn't have enough credit for loan approval.
b. Can she legaly work there? I read some where that you can not work for your own company. (I am not talking about drawing salary?)

2. I start business on my name and she can work as CEO/Manager :
a. Would it affect my I485 processing?

3. We both start in partnership:
a. Again can she legaly work (with/without drawing salary?)
b. Would it effect my I485 processing

Should we start C-Corp or LLC? It's fast-food franchise.
 
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