Starting Online Biz with EAD

[HoustonVJ]

Hi JoeF, immigration guru's & others,

I been going thru all the threads regarding starting a biz in US with all sort of visa's or EAD options. I think went over most of them. Let me summaries what I scanned thru and then let me shoot my quetions to you all. Please do any correction in my summary if you find any.

B1 & H1 Visa Holders - Won't be able to do any Biz in US as they are bound to work for employee who sponsored their H1. They also should not involve in any IBO's like Amway, Quickstar etc which is against the law.

EAD Holders -
1. They can open a LLC Corp but not S or C Corp which needs the shareholders to be US Citizens or GC's. Information about opening any form of biz can be found in the IRS site which is really knowledgable. Thanks for the link.

2. If your spouse opens a biz, you can't work without work authroization because its for-profit company and also you need authroziation from you current company to work off line if you have any contract with them.

3. If you open a biz with EAD and never used EAD for anything else and always used H1B, then your H1 status will be terminated. SO if you use your EAD you H1 status will be terminated and you can't work if your EAD expires and can't apply for H1 too..

4.You can open Online or physical Biz using your EAD which is good thing.


That concludes my study in this form.

Let me shoot my question,

My situation is, I am a EAD holder and like to start a Online Biz and let assume

1. Asumming I won't have any problem with my GC sponsor or employer, Do I still need to register the Online Biz or can I do without FEIN TAX ID if the biz has no sales involved ?

2. Can a H1 person partner with me in my business without doing any work ? I guess they can just checking again.

3. If I register and get the TAX ID, Do I need to take Tax Permits in my State (TX) for online biz ?

4. If I don't register the biz, Can I still submit the tax return with income from the biz as personal income ?

5. What are other registration do I have to do if I start a biz except FEIN and Tax permits ?

6. Can my spouse get involved in my registered biz ?

Hope to get a good answers for all my questions..

Thanks
Vijai

 

[HoustonVJ]

Follow up

You summed it up pretty nicely..

Thanks.

Lots of self-employment work is done without getting a tax id. For example, I have run my software development side business without a tax id. But if you sell goods, you need one. If you have employees, you also need one.

So I can do biz without tax id if it doesn't involve any selling items and employees. As you mentioned you are doing software development side biz, which inturn will be sold right ?! How come you are doing without TAX ID ? In general any biz will involve selling of something, how do you differentiate it ??

THe H1 person can be a passive investor in your business.
No idea how this works in Texas.

So you are saying its not a FED law and depends on state ?

You would have to declare that as income from self-employment.
Depends a lot of your state and local rules. Get a business lawyer or a CPA. They know what is needed.

So any biz without tax id should be entered as personal income in the tax return. But if you do that, is it possible for a chance that the person to take legal activities if something goes wrong and come after your home and self assets ?

I assume that your spouse has an EAD as well. If so, she can of course work in the business. If she's going to be an employee, you of course have to deal with employee taxes, etc. Again, a CPA knows how to handle all this.

So my wife can also work but if it involves money then she can declare in her tax return as income right ? What will be problem ? Also if no employee pay and just profit sharing what will be effect ?

 

[HoustonVJ]

Thanks again for the reply. SO you are saying you can do a service based Self employement business on EAD which doesn't need a Tax ID and you can report in your yearly tax return. If thats true, thats wonderful.

Only biz involving buying & selling needs to be registered and need to have TAX Id and canbe incorporated according to our needs. Thats a conclusion..

So my wife can also be a co-owner on my service biz and we can file the same return all together to put our personal income in the schedule C. I guess that should work too.

One final question, if I am going to register is it good to user a POB number instead of my home/apt ? I know apt landlord won't allow to do business, it might against the contract.

Thanks..
vijai