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shahlivefree
05-28-2012, 03:11 PM
Hi,

I have formed an LLC. I am the only owner. My business hasnít made any profit yet.

I know that H1B is allowed to invest in business. Iím still waiting for my priority date to file I-485. I heard that the LLC tax filing could trigger an issue during the process of I-485 filing. I am wondering does anyone know any ways to avoid these problems?

Please share your workable solutions. I donít want to hear something like you canít do it because such a biased immigration system is not fair for India or ChinaÖ. We only live once guys. Letís make the most of our life. I supported HR3012 and made contributions toward it. Anyways, please help.

GCHope2011
05-28-2012, 06:46 PM
Hi,

I have formed an LLC. I am the only owner. My business hasnít made any profit yet.

I know that H1B is allowed to invest in business. Iím still waiting for my priority date to file I-485. I heard that the LLC tax filing could trigger an issue during the process of I-485 filing. I am wondering does anyone know any ways to avoid these problems?

Please share your workable solutions. I donít want to hear something like you canít do it because such a biased immigration system is not fair for India or ChinaÖ. We only live once guys. Letís make the most of our life. I supported HR3012 and made contributions toward it. Anyways, please help.
Ownership of a LLC is not a problem. The question is - who works for the LLC? How is LLC producing any revenues/ costs? You are not allowed to work for the LLC in whatever capacity. If you are the only employee of the LLC and the revenues and costs of the LLC are based on your efforts, then you are in violation of H1B provisions.

shahlivefree
05-28-2012, 07:35 PM
Thanks, GCHope2011. I knew the obstacles. I am wondering is there a way to change the LLC tax filing status, so that it shows I am actually INVESTING in my business? (I'm investing my hard earned money and time.) Anyone knows the answer? You could send me a private message if you want. Thanks!!

shahlivefree
05-29-2012, 08:10 AM
Good morning, could anyone answer my question? :)

what_if
05-29-2012, 09:42 AM
Good morning, could anyone answer my question? :)
You need to tap a GC holder or US citizen's partner to make this work. You can give that person a 5% stake (and some remuneration, if needed) for agreeing to be an active partner and own 95% stake as a passive LLC partner. Since you'll be a passive LLC partner, it would be an investment (vs. work). When you file your taxes, make sure you or your tax accountant emphasizes on the passive role you are playing (there's some section where you are asked about it).

what_if
05-29-2012, 09:45 AM
You need to tap a GC holder or US citizen's partner to make this work. You can give that person a 5% stake (and some remuneration, if needed) for agreeing to be an active partner and own 95% stake as a passive LLC partner. Since you'll be a passive LLC partner, it would be an investment (vs. work). When you file your taxes, make sure you or your tax accountant emphasizes on the passive role you are playing (there's some section where you are asked about it).

Sorry, I meant "US citizen as a partner" and not "US citizen's partner".

kiran_pathuri
05-29-2012, 11:04 AM
You need to tap a GC holder or US citizen's partner to make this work. You can give that person a 5% stake (and some remuneration, if needed) for agreeing to be an active partner and own 95% stake as a passive LLC partner. Since you'll be a passive LLC partner, it would be an investment (vs. work). When you file your taxes, make sure you or your tax accountant emphasizes on the passive role you are playing (there's some section where you are asked about it).

When filing taxes for an LLC, you can file in two ways.
1) As a partnership company, where the income or loss will become part of each partner's income as per their share and active partners pay 15% additional self employment tax. You will use form 1065 to report your company's income and then Sheet K will be provided to each partner by the managing partner or tax preparer. You will use this to file your individual taxes.
2) File the taxes as of filing a corporation. In this you first need to elect to make your LLC as a corporation for taxation purposes by filing form 8832 with IRS. Then your LLC will pay the taxes to IRS, note here the corporation pays taxes here as against reporting in the first case. Every partner pay the 15% corporate tax on the share they receive (That is what Mitt Romney pays for his investment income :)).

And also with option 2, you need to keep paying estimated taxes quarterly. If you make no money, still you need to report this to IRS. With option 1, you file taxes once a year only.

Any partner who own 50% or more in an LLC is considered an active partner, so option 1 won't work for you as you are the only partner. You may be able to use the option 2 and probably you are safe. Go through IRS's publication 3402 which explains the taxation of an LLC for more details. http://www.irs.gov/pub/irs-pdf/p3402.pdf

gk_2000
05-29-2012, 12:39 PM
Outsource the dev work, if it is an IT co. Maybe you have some relative in your country?
You can simply hold "shareholder meeting" to get to know the status of the work..

bpratap
05-29-2012, 01:48 PM
Cant the owner of LLC be Pro-Bono (No remuneration ) ?

tavish.sandstorm
03-15-2017, 12:44 PM
Hi, what about forming an LLC just for real estate? I do not do any work on it, the management company does all the work to fix, rent it out, collect the rent, etc. I only create the LLC to put the properties in there for liability protection and earn passive income.
Any thoughts/opinion on if I am violating the H1b status and will it have any impact to my GC eligibility in future?