starting a company on EAD

[webuser007]

I am a newbie to the world of incorporating and hence please bear with my questions.

1) my wife is the primary application of greencard. Both of our I-140's have been approved. I-485's are pending. Both have gotton EAD's. So, I can start a company (MYCOMPANY) right?
2) Can I start MYCOMPANY and not really work for it, or earn money on it - and continue to be an employee of my current company (CURRENTCOMPANY) on H-1B?
3) Can I, after a few months of (2), quit CURRENTCOMPANY, and start working and earning for MYCOMPANY?
4) At this point of (3), I am no longer on H-1B, but on EAD. True?
5) In the event that my wife (primary applicant) is affected by a layoff, what happens to my status?
6) If she finds another job, or shifts to a different company (similar position however), what happens to my status?
7) What are the different kinds of business entities one can start when on EAD - (a) S corporation; (b) C corporation; (c) LLC. Are there any types we can start on EAD?

Thanks in advance.

 

[webuser007]

Thanks for the prompt reply.

To start a company, you don't even need any visa. To work for it, you need work authorization, like an EAD.
What do you mean with "not really working for it"? What sense would a company make that exists but doesn't do anything? IRS, btw, automatically closes dormant companies after some time.
As soon as you do any kind of work for your company, and that includes stuff like just opening a bank account for the company, you are using your EAD and cease being on H1. Of course, you can continue to work for your employer on EAD.

What do you mean when you say "you can continue to work for your employer on EAD". I am right now on H-1B with my CURRENTCOMPANY. Are you saying I can make the switch to EAD and continue my employment with them? So in that case, I can open my MYCOMPANY, switch to EAD, try it for a month or so, and if it doesn't work out come back to my CURRENTCOMPANY (if they agree) and join them again on EAD. What happens to MYCOMPANY then? Do I have to close it before I join CURRENTCOMPANY again? It's confusing to me.

See above.
Yes. See above.
Well, that depends. If it is over 180 days after filing the I-485, she can use AC21. If not, her I-485 may become invalid, and that would of course also invalidate your I-485.
See above. It depends if she can use AC21.

Yes, 180 days are over. What happens to my status if she uses AC21?

For the S-Corp., all shareholders have to be US citizens or Permanent Residents. For all others, it doesn't matter.

 

[webuser007]

Yes. For them, the only issue should be that you have work authorization. That's why you had to fill out an I-9. The EAD is work authorization, so you can of course work with that for your employer.
However, there may be a catch: a lot of employers don't like it when their employees have side jobs. That takes energy away from the day job. These things are spelled out in the employment contract. It may be that having a side job requires employer approval.

Ok. Lets say I open my own company - how does the switch from H-1B to EAD happen with my current employer? Do I tell my current employer that they need to do something on their end to make sure they know I will be working for them on EAD now, and not on H-1B? What will they do to change my status from H-1B to EAD?
A related question - if my existing employer was also processing a green card for me (currently still in the LC stage), would that processing be affected when I make the switch to EAD? What do companies usually do? - discontinue the process because I already have one application pending?

With the EAD, you can work in as many jobs as you want, including your own company. See above about the side-job issue.
Nothing. Her I-485 continues to be pending, and your I-485 continues to be pending.