Starting new business on H1B visa

P

ponds1976

New Member
Hello,

My situation is as follows:

I wish to start an e-commerce/internet company. This company/service will help people meet each other and can be used by people all around the world. There will be online revenue aspect to it wherein people anywhere in the world could pay using their credit/debit cards for certain transactions and services. The team will be located partly in India and partly in USA.

I have registered the company in India (with my brother as owner of the company). I am here in USA on H1B visa and working for a software consulting company. I understand that I am not allowed to work for any other company and can only be a passive investor in another company. Is it best for me to just launch the company from India and set it up over there with all the transactions and revenue flowing there. Since it is online, it doesn't really matter where you are. Of course, in order to make it a success here, marketing is required and for that, funding and resources are required. The major market for my venture is USA. What would be the best possible solution for this problem? Should I partner with someone and let him own the company. What should be the structure and salient features of this partnership deal. How could I protect my interest in the company, (other than trusting my partner)? How could I get rid of my day job to work full time on this venture. My green card processing is happening with my current company. Can I file a concurrent green card with this new company as well (along with another H1B from this new company).

What are other things that I need to be concerned about? Any international tax laws that I should be aware of - since anyone anywhere in the world can pay for the services.

Your response to this will be highly appreciated.
 
I know a friend of mine has an S-Corp and he is on H1B. Please check with an accountant to confirm this. In that case, you could start a company with no other partners.

As far as, sponsoring yourself, it probably depends on number of American employees and revenue. If it is already being processed with your current company, why bother to file it with your company.

As far as international tax laws, I would go with an accountant.

Good luck.
 
Company on EAD

Hello JoeF,
What about i am on EAD. Is it possible to open a Company on my Sister's Name who is a Green Card Holder and transfer my papers to that company.

Thanks
Sanjay
 
My Brother In Law is a Citizen

I guess i am a little confused. My Brother In Law is a Citizen and he owns the company. Will that help or i need to have someone who is not related to me in anyway who will hire me and then transfer my papers to him/her.

Thanks
Sanjay
 
Thanks a Lot

You are Great. You should have been an Attorney as you have answers to all the questions.

Thanks
Sanjay
 
Re: Re: Re: Starting new business on H1B visa

Originally posted by JoeF
Well, your friend is in trouble. An S-Corp requires that all shareholders are US citizens or Permanent Residents.
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I browsed through S-corp documents from IRS, and I don't see any mention of restrictions on immigration status. Is this any H1 visa regulation? Could you please share source of this information? Thanks.
 
Yes. IRS document clearly states that nonresident aliens cannot be shareholders. When I had started my S-corp, I was already a green card holder. I informed my friend on H1B about these findings, but, he still thinks he passes substantial presence test. He also said that he has already checked this out with IRS.

However, I agree with you, and thanks JoeF for making sure that I did not misguide anybody.
 
Originally posted by JoeF
The law is what counts, and he should talk to a CPA or tax lawyer, who actually know such things.
Click to expand...
Funny you say that, he is Finance major. I have given up convincing him ;)
 
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