Starting a Business By non US citiens

[RamCharan]

Jurisdiction

California

First of all, Thank you for taking time to read and answer this question.

I am green card holder and my colleague is an H1B visa holder. We have a consulting business idea and we would like to pursue the idea to reality. From reading other forums and blogs, It is stated that we would require a C corp to be formed. I would like to have your guidance on the following,

1) Can the green card holder start C corp
2) Will the H1B visa transfer to new company be difficult
3) With restriction for H1B visa, can my colleague be added as co-owner/employee
4) Can myself and my colleague have ownership of the company or any guidance on partnership contract is helpful

I do have a lot of questions on tax implications both individual and business and I will probably reach out to a CPA based on the responses.

Sincerely, appreciate your help.

 

[adjusterjack]

Specific advice on starting a business is beyond the scope of this forum

Consult an immigration attorney, a business attorney, and a CPA.

 

[Tax Counsel]

First of all, Thank you for taking time to read and answer this question.

From reading other forums and blogs, It is stated that we would require a C corp to be formed. I would like to have your guidance on the following:

It does not have to be a C corporation. It could be a partnership, LLC, or LLP. It could be a S corporation, too, if both of you are resident in the U.S. for tax purposes. A green card holder is a resident of the U.S. The H1B visa holder might be a resident for tax purposes. That would be determined using the IRS substantial presence test. Which type of business entity would be best for you depends on the type of business you will be doing as well as the tax laws of the country or countries that the two of you are from.

First of all, Thank you for taking time to read and answer this question.1) Can the green card holder start C corp

Yes. And the two of them could form the C-corporation too.

.2) Will the H1B visa transfer to new company be difficult

Adding the H1B visa holder as an owner will not be a difficult thing to do.

3) With restriction for H1B visa, can my colleague be added as co-owner/employee

He certainly can be an owner of the company. But whether he can work for the company depends on whether the work he does qualifies one of specialized occupations for which he was granted the visa. He ought to see an immigration attorney for assistance with that.

.4) Can myself and my colleague have ownership of the company or any guidance on partnership contract is helpful

You both can have ownership interests in the company. As for drafting the necessary documents for the company I would strongly advise you both to consult a business attorney and a tax attorney too. They can help you decide which business form is best for you and draft the necessary documents to set it up.

 

[RamCharan]

@Tax Counsel Thank you so much for your response.

 

[flyingron]

Indeed, TC is right. I have had H1Bs who were also my employees as shareholders of my company (which was initially a C corp but after some reorganization became an S corp).