Q: I am in h1b and my Wife is on h4 ead , we would like to start a business. I would like to know if we can establish a LLC
Is it legal and from immigration and tax perspective what are things we need to make sure that we are compliant with law.
A: Yes, you can start a LLC in your particular State. The two are not related. In fact, if you lived and were a resident of a foreign country, you can open an LLC in the U.S. You would list yourself and your foregin address, but you would need a resident agent in the State where the LLC is opened.
A: Being on an H1B visa, you can establish or invest in an LLC; however, you cannot actively manage or work for the business without proper work authorization specific to that role. Your wife, on an H4 EAD, can legally work for and manage the LLC since she possesses employment authorization. Ensure that you're not receiving any salary or compensation from the business unless you obtain relevant work authorization. From a tax perspective, make sure the LLC complies with all federal, state, and local tax obligations. Maintaining accurate and detailed records of business operations and financial transactions is crucial. It's also advisable to consult with an immigration attorney to ensure that the business activities don't inadvertently violate the terms of your visa status. Lastly, also seek guidance from a tax professional to ensure the business's tax compliance.
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