Opening a Business in the U.S.A as an H-1B Holder

Opening a Business in the U.S.A as an H-1B Holder

Opening a Business in the U.S.A as an H-1B Holder

H-1B visas are employer-specific, so their holders are only permitted to work for the company that applied for the visa. Entrepreneurship can be challenging for H-1B workers since there must be an employer/employee relationship between the H-1B visa holder and the petitioning company. H-1B employees may still have choices, though. Certain conditions apply to the ownership of businesses by people with H-1B status. An H-1B visa holder, however, is not permitted to work for themselves or for any other business save the one that filed the petition. Even if the labor is free, individuals risk losing their underlying H-1B status if they work for a company other than the H-1B petitioner. A limited liability company (LLC) can only be owned by an H-1B holder if they are a passive investor who holds no employment relations with the business. Their activities with the LLC must not constitute unauthorized work, and the LLC cannot sponsor their H-1B visa. They must stay employed by the organization that sponsored their H-1B visa. 

Getting Sponsored by own business:

While USCIS permits one to get sponsored by your own business, you have to meet certain criteria requirements. These are:

·         Establish a legitimate employer-employee relationship.

·         Your employer should have the authority to hire and fire you as necessary.

·         The company should continue after firing you

·         The company was not created to obtain a visa

·         H1B Position will still require a bachelor’s/higher degree

·         The business plan must incorporate the hiring of US workers;

Getting income from own company while on H1B:

While on an H-1B visa, one cannot participate in the day-to-day administration of their own business, and in a similar vein, they cannot get a paycheck from any employer other than the one that is sponsoring their application.

Opening a business in the U.S.:

Anyone with business startup plans may have an approach in place for doing so. However, if you’re thinking of forming a business in the US, you can get a quick overview from the processes below:

·         The individual should continue working for the H1B-sponsored company. The cornerstone of an American visa would be that. Avoid leaving the H1B sponsor to launch a business since one may eventually lose the status and be removed from the US. Before opting to leave the H1B job, switch the visa to another nonimmigrant visa.

·         Have a comprehensive business strategy that demonstrates your company’s potential for commercial success.

·         Decide which business type you want to incorporate – such as LLC or a corporation.

·         Create the company from scratch and participate as a stakeholder or passive investment without affecting your H1B status. Instead of getting involved in the operational side of the firm, find competent partners who can operate it.

·         Register a name for your business that is unique and does not infringe others’ IP rights. You can register your name with local or state offices.

·         Decide on a business location where the information regarding taxes and other legal information can be received. Contact the Internal Revenue Service (IRS) to receive your Taxpayer Identification Number and Employer Identification Number.

·         Ensure that you adhere to all legal requirements while starting your firm, including obtaining the necessary licenses and permissions to operate legally. Additionally, be sure to abide by laws governing health codes, employee benefits, insurance, taxes, and other matters that may give rise to legal complications.

·         Have a certificate of incorporation for your business.

·         Manage your company’s performance as a passive investor and pursue your entrepreneurial dreams.

When an H-1B visa is sponsored by a company in which the beneficiary owns stock, United States Citizenship and Immigration Services (USCIS) closely examines the situation. It is not advisable to seek an owner’s H-1B visa through S businesses, C corporations, or partnerships. To prevent jeopardizing their H-1B status, H-1B visa holders should discuss any entrepreneurial endeavors with their immigration attorney on a case-by-case basis. Attorney Raju Mahajan & Associates has been trying to assist individuals live their ambition of being an entrepreneur. Our immigration law office provides numerous legal services, including online consultations, which you can have access from any part of the world.

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