Q: Can I start an LLC on an F1 OPT as a foreigner? If yes, am I allowed to work full-time for my LLC and draw a salary?
I graduated in May 2024 with an MBA degree and I am currently on my F1 OPT. I have been working on a business idea for some time, and would like to start an LLC to formalize my business and use it as my OPT for the first year. I have already spoken to my DSO and while they have not raised any red flags, they recommended that I seek legal advice to ensure clarity and conformation with state and federal laws. My questions are:
1. Am I permitted to form an LLC while I am on F1 OPT? If yes, can I draw a salary from it and work on it full-time? FYI, I will be the sole owner of the business.
2. Am I required to form the LLC in my state of residence (Washington state)? The general recommendation is to form an LLC in Wyoming because of their relaxed and low tax laws.
3. Are there any concerns/risks I should be aware of?
Please recommend lawyers I can formally consult for this purpose (immigration/business/other lawyers, it's a bit confusing who to reach out to)
Thank you in advance!
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A:
You can form an LLC while on F1 OPT, but there are some important limitations to be aware of. While starting the business is allowed, working full-time for your own company can be problematic. The U.S. immigration rules for OPT require that employment be directly related to your field of study, and self-employment in an LLC may meet these requirements, but there are complexities. Drawing a salary from your LLC can also be a legal challenge if it’s not structured properly to align with your OPT status.
When choosing the state for your LLC, you don’t necessarily have to form it in your state of residence. However, if your business operates in Washington, registering in Wyoming or another state may lead to additional compliance requirements, such as foreign registration in Washington.
It’s crucial to fully understand the legal and immigration implications of your decision. Consulting with an immigration attorney experienced in business law will help you navigate these complexities, ensuring you remain compliant with both your OPT and business regulations. Look for an attorney who understands both business formation and immigration law, as they will be best equipped to guide you.
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