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swashbucklers
05-06-2016, 12:06 PM
Hello everyone

So on H4 ead I plan to start some art work and not expecting any/lot of profit 6 months down the line.

1) Single member LLC:
Advantage: Protect against personal liability, Tax benefit
But the issue is that during tax reporting it is treated as a disregarded entity (sole proprietorship) and there are chances of getting Audit during tax file.


2) With multi member LLC you require atleast 2 members. I don't want to involve my spouse (who is on H1B Visa) as a member on LLC due to any visa constraint. I read that you can keep spouse (H1b holder) as a passive investor without any issue.

3) C-Corp: Double Taxation. Everyone is suggesting to go w/ LLC..


Can anyone please suggest what is the better option (considering tax benefit, no implication on visa/green card)



Thanks a lot!

drcool77
05-07-2016, 05:24 AM
If you don't plan to hire employees, go for LLC. I discussed this with my CPA and he suggested if you dont hire anyone then LLC is better option but if you hire more than 2, then go for C corp as it offset payroll taxes.

Hope it helps!

swashbucklers
05-07-2016, 05:52 AM
Thank You. Yes I don't want to hire anyone. But w/ LLC should it be single member LLC or multi member LLC?

With Multi member issue is you need another partner and I don't want another partner as my spouse who is on H1.. What do you suggest?

Thanks!

drcool77
05-07-2016, 06:56 AM
LLC is usually single member!

gulute
05-07-2016, 08:03 AM
With multi-member LLC -

- The partners can be changed anytime.
- You can sell the company with the same EIN, when you plan to
- The tax filing will be different from a single member LLC. You may need to start the tax filing with a professional help.