Chicago, IL asked in Immigration Law, Business Formation and Business Law for Illinois

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.

2 Lawyer Answers
T. J. Jesky
T. J. Jesky
  • Chicago, IL
  • Licensed in Illinois

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.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Immigration Law Lawyer
  • Sacramento, CA

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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.