Owning or Doing Business on H-1B
Is there any legal issues with starting a LLC for a software product on H1B based on below scenarios.
Scenario 1: Start a LLC in partnership with a US Citizen. For example say I would be 90 % stockholder and the other person would be 10 %. My partner would run the company and do all the work that is needed to sell the software product. I would be a passive owner and not involved in any active duties.
Scenario 2: Start a LLC as 100 percent stockholder and employ a GC holder or US Citizen as a manager to run the company. I would be a passive owner and the manager would do all the active duties. Is there any restrictions around how much salary i should pay the manager of my company? How about if i offer him/her 10 % of the stocks as a compensation instead of salary or offer him/her commission based salary?
Watch the Video on this FAQ: Owning or doing business on H-1B
Video Transcript
1. I do not see any problem with that.
Note: This is a verbatim transcript of the referenced audio/video media delivered as oral communication, and, therefore, may not conform to written grammatical or syntactical form.
well, what can I say than the usual? Folks at Rajiv's office must be thinking 'phew. we have recieved another one of those glorious feedbacks today. YET again. so, there you go. I'll be another guy who says you are the best. But its true aint it? You know your stuff, you are attentive, you hear our griping, whining and still say 'How can we help?' . Thats what I like the most about Rajiv's Office. After 9 years in the country, just when I started to get comfortable and thinking my status is safe, i received an RFE asking for what I call "Copy from CM and Copy from PM", which in other words, USCIS has asked for letters from everyone involved in my employment. Thank goodness, they didnt ask the now infamous 'tax returns of the company and letter fron the president'. The moment I saw my RFE, I sent an email to Rajiv with one sentence 'HELP!!'. He responded back in 5 minutes, directing his most amazing and best-at-what-she-does assistant, Anna Baker to help me. Letters followed, checks mailed, more emails and voila, we have our case ready and all the letters signed. We applied last friday (July 3rd), received the status email, and case processing has resumed the same day. On July 8th we received an email containing the magical words 'Approval Notice Sent'!! So, lets start with the mail room guys, copying room folks, all the assistants: Thanks a ton! and then Anna : Any number of thanks and best wishes wouldnt be sufficient for your hard work and diligence. and of course Rajiv: For assembling the best team, and for always being there. Thanks to all of you for making this happen for me. Much Appreciated. Bala