Starting a Company on EAD...questions for JoeF or any other expert !!!!!!!!!!!!!!

A

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Registered Users (C)
Firend(s),

Me and my wife are working on EAD for 1.5 yrs now. My 140 is approved and 485 is pending - I am the primary applicant. I would like to know -

1) Is it possible for us to start a S corp?

2) Can we be the equal shareholders in the company?

3) Can my wife own 100 % share in the company and I work for her in the same or similar job profile thus file AC21? **she is the secondary applicant in 485 filing.

4) As we are planning to start something small - working from our current apartment only me and my wife - with an objective to SAVE ON EXPENSES & TAX, which type of corporation would be the best - S corp, LLC or INC? I know its a little vague question and may be easier to answer with a simple statement saying - "it depends on your situation" but really guys here I need some suggestions. Esp. considering the scenario what if the company doesn't generate any revenue - in LLC perhaps I will still have to pay $500 as california tax - which is big money for me.

An unrelated question -

A) Suppose I am working for a Company A in same or similar job profile as full time. Can I also work on 1099 for company B?

Thanks
 
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Why do you want to start a Corporation/LLC? Remeber there is other form of business - Sole Propreiter. Your wife can be a sole owner of a business.

For start up you can certainly go with sole, Unless you are required to do so( incorporate).

Also, the california LLC fee is $ 800 per year and not $ 500.
Starting a company doesen't always mean Incorporate. It basically depends on what business you are doing.

Pursuant to Internal Revenue Service Circular No. 230, be advised that this advice was not intended or written to be used, and cannot be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.
 
It is my understanding that the permanant residents in IRS view is different from immigration point. It depends upon your stay in a particular year in this country. For ex if you stayed in this country for 180 + days in a tax year you are a permanant resident in this country and technically work with S corp. Why not?
 
Joef,
Did you check if there might be any exceptions to that ...Probably will take time but have to check the revenue rulings.

I am doing my research, will let you know if I find something different as an exception.

Thanks.
 
could be very basic questions.....

Can my wife on EAD start a S prop company from the apartment? I mean do we need to have the company office, separate phone /fax line etc.?

Do we need to have an EIN for S-prop company?

Also, can I work with this company as a full time employee?

Thanks...
 
United Nations, Is that means and H1B holder, or a person on EAD (Primary or Secondary), cannot start a C corp? Or this restriction is only for S corp. I have heard that a person on H1 B or EAd can start their own company. But the person on H1B cannot work for the same company.

I have personally seen people, who started consulting/development companies on H1B and are doing business? If some body is doing that, when this thing comes in to picture as....something wrong?

Infact CPAs mentioned that. I am not arguing that is correct. But looking for an answer.
 
Every Corp, Partnership(LLC or general ) has to have a EIN. And a sole proporeiter if employs individuals has to have a EIN.
 
businesswoman said:
Why do you want to start a Corporation/LLC? Remeber there is other form of business - Sole Propreiter. Your wife can be a sole owner of a business.

For start up you can certainly go with sole, Unless you are required to do so( incorporate).

Also, the california LLC fee is $ 800 per year and not $ 500.
Starting a company doesen't always mean Incorporate. It basically depends on what business you are doing.

Pursuant to Internal Revenue Service Circular No. 230, be advised that this advice was not intended or written to be used, and cannot be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.
Click to expand...

The main reason for incorporating a business (C,S or LLC) is to reduce the personal liability. You can get sued for almost anything by customers, partners, suppliers. If you are incorporated the liability is limited to your investment in the business. If you are Sole prop , all your personal assets are online. Even though its more hassle and paperwork, its an insurance you need take if you are involved in any business.
 
PLEASE FORGIVE ME IF THESE ARE VERY BASIC QUESTIONS - I AM TRYING TO DO SOME ANALYSIS AND SEEK SOME EXPERT KNOWLEDGE HERE !!!! THANKS

I am trying to make an estimate - that WITHOUT ANY REVENUE stream if sb starts a business how much will he will have to bear in terms of taxes and other items in CA. For eg.

A)
Its approx $250-$300 for initial company (C, S or LLC) registration.
B)
Annual tax - LLC - CA tax - $800.

Similarly, there may be list of items that a person needs to take care 'AT A MINIMAL'. Guys if you have a list with the $ figures please share it with me.


My next questions is WITH REVENUE stream - as we understand S corp probably is the most lucrative thing in terms of saving taxes. How about the C or LLC? Please share if you have any matrix stating the different taxations, deductions etc with a baseline 100 K annual revenue stream and with one employee with a pay of $60k from this 100 k revenue stream.

Thanks in advance!
 
joef, if you think that you can make some money in your jobless days,for many years!!!,.. OK then go ahead make it. Rajiv, owner of this site, joef is putting 20hrs /day posting here..OK.. Please pay him , Joef Let me know, I will make sure that you are well feed so that this forum can be well adviced ... OK my freind...........if he don't get help , he is gonna to screw many memebers on this forum ....OK.... Members please help joef who is is jobless for many years .. he is begging for your help.
 
Yes and I do have one...

Yes you can... I have an S corp and i am on H-1... my husband is an F-1 and have an S corporation and own a company..... there is a residency requierment (i think 180 days withing the last yr) but i had mine for 1.5 yrs now and im filing taxes and everything is fine
 
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