Q: Question regarding forming LLC and passive investment while being on H1b
I am currently on H1b working for an employer.A couple of my friends recently proposed a business idea to organize social events, both of them on H4 EAD and L2 EAD and we formed a member managed LLC with me being just as a passive investor and each of us owing 33% of the share.My friends are acting as members and managers of the company. They are also working full time jobs with a different employer.Is this a right legal structure for the company ? Will this create any red flags in my green card process ?
A: There is a gray area between working which would cause your visas to automatically terminate, and passively managing investments. If you have a manager and you and your partners are directing him and overseeing the business - it may be okay. However, if you guys are behind a cash register 24/7, then you'd be deemed as working illegally.
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