Hi yygian,
Can a non-resident alien (with an H1B visa) open a business in the USA?
Yes, there should be no problem with you owning a business as long as
you take a passive role, receiving only profits from your investment.
As you know, your work in the U.S. is employer-specific (i.e. limited
to employment with the approved employer/petitioner) so working for
your company and receiving any kind of compensation for your work is
strictly not allowed. Doing a bit of volunteer work, like running
errands, is permissible, but best done after you have hired an
employee to run the day-to-day operation of the business.
"In other words, a person on an H1B or other temporary work visa in
the United States is legally allowed to invest in any venture or
company and could possibly undertake some limited volunteer work on
behalf of the venture or company. However, the individual cannot work
indefinitely for that company and earn a salary without obtaining
prior approval from the USCIS or DOL to work for the particular
venture or company."
" We have also seen groups of H1B holders join together to start
companies. While it is necessary to be extremely careful not to
violate one's status, at least in this situation there are more people
involved amongst whom to spread volunteer efforts and get the company
started. "
http://www.murthy.com/startup.html
"There are no prohibitions under U.S. immigration law that would
prevent an individual who is foreign - indeed, someone who has never
set foot in the U.S., from serving as an incorporator, director, or
officer of a U.S. enterprise. Similarly, it is possible for
partnerships, limited liability, and other forms of organizations to
include members who are not U.S. citizens, residents, or in
non-immigrant status. It's the "working" the business that is
prohibited."
http://www.usvisanews.com/faq/business.shtml
Can you start your company, while on an H-1B?
"Yes, you can. But you can't form an S-Corporation. For that you have
to be a citizen of USA. There are multiple ways of starting your own
company, but one of the most effective one is by incorporating
"Limited Liability Company" ( LLC ). You can find lots of companies on
the net which can do this. They may charge you around 150-200$, and
the procedure may take few days. LLC can be a "Partnership Firm" or
the liability protection as a "Incorporated Company". You can be the
Chairman or Director of the board, but you can't work for it, unless
you have an H1 visa issued from that company. But, you can always hire
a CEO for the company, who has a work permit (Green card or Citizen
etc.)."
http://path2usa.com/immigration/h1bcorner/h1b_tips.htm
"Having a business and working at it versus investing in a business
are two vastly different things. Recieving the profit from an
investment is appropriate. Receiving a salary or other compensation
from a business is not appropriate. The IRS takes the view that
regularly working for an entity (for a specific period every day,
etc.) constitutes employment. The INS would typically follow suit,
employing the IRS definition. If your clients set up a corporation,
perhaps paid a fee to someone to actually "run" the business, invested
in the business, and received the profit, then I can see that this
legal structure insulates your clients from direct "employment" and
thus could be permissible."
http://answers.google.com/answers/threadview?id=111986
Remember, your priority is to keep your immigration status safe and
secure. When in doubt, err on the side of caution. If you feel in your
gut that you really should be being paid for your assistance, then you
are probably are putting your status in jeopardy. Pay attention to
your instincts.
I hope this is clear. If you have any questions, please post a
clarification request and wait for me to respond before closing/rating
my answer.
Thank you,
hummer
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