Creating a Business in the US on an H1-B Visa?
GnaGnaGna asks: "I've lived in the US for almost a year now and have a full time position with a major American company under an H1-B visa (work visa for foreigners). Besides this job, I also run an increasingly popular website generating AdSense revenues. I am not sure if I am allowed to create a US company (most likely an LLC), under my legal status, and transfer the Adsense profits to my personal bank account or a business bank account.
Have my fellow readers faced a similar legal situation or know anything about it?"
Get a lawyer. There is nothing here that can really help you other then moral support.
Now, if that makes sense to anyone, could you please explain it to me? I think I've confused myself.
Cliff, please explain why this is a good "ask slashdot" question. This is obiously something that should be referred to a lawyer. It is hard to believe that this was the best question you had in the queue.
-molo
Using your sig line to advertise for friends is lame.
No, you are not allowed to run a business while you are on an H-1B visa. You can be a passive investor in a business ONLY. If you do anything that is regarded as work that would normally be paid, even if you are not remunerated, you break the conditions of your H-1B, and are deportable under 237(a)(1)(C) of the INA. You may not receive anything other than normal shareholder dividends from the company, and you will need to declare them on your IRS return. Any attempt at covert payment through dividends is likely to attract unwelcome attention from the IRS, and possiby the USCIS.
Lots of people do what you are describing, but it is definitely 100% ILLEGAL, and you will most likely be deported and banned if you are caught.
Call me old fashioned, but I like a dump to be as memorable as it is devastating - Bender
I recommend that you use the time you have in the US to woo some VC capital.. maybe even sell your website to interested parties. If you get busted, so what? The INS will probably not renew your H1B in any case.
How we know is more important than what we know.
On an H1B, it is illegal for you to form a business that you are an active investor in. This is part of the "contract" you enter into to become an H1B. However, if you were an illegal alien, it would be just fine. For a prime example of this, check into the history of Philippe Kahn, founder of Borland Software Corporation, creators of Turbo Pascal.
"To those who are overly cautious, everything is impossible. "
You have asked a question that can only be answered by a lawyer. While reading the answers to your question, you should be aware that:
/. readers have been in this situation
/. advice could be:
[x] It is likely that many
[ ] That question is not applicable to geeks.
[ ] Wow. Who would ever wonder about that.
The consequences of following
[ ] Incarceration in a Federal Supermax Prison
[ ] Incarceration in a regular prison
[ ] Incarceration in "country-club" for white-collar criminals.
[ ] Large fines
[ ] Small fines
[X] Deportation.
Further consequences could be:
[ ] You may have to register your address for the rest of your life.
[X] You may never be able to [legally] enter the United States again.
[ ] You may be subject to the ridicule of your peers.
[ ] You may become an international pariah.
[ ] Find a new career. Toxic waste disposal sounds good.
Best of luck in your future endeavors!
The real "Libtards" are the Libertarians!
Did you notice that the person who submitted this was named "GnaGnaGna"? I'm not convinced it's even a real question.
Sokoban, I've determined the only way to stop the aliens from taking our "adsens" is to all have gay sex until all the aliens go away.
Please show your support and sign up for the man-orgy below.
Roughly half my comments are never submitted. You may be reading the better half...
Could you perhaps register the business in your home country instead?
> I also run an increasingly popular website generating AdSense revenues
:-) I'm not implying anything -- still, taking into account some "invisible intonations" and the way the question was asked -- Google is expected to shutdown their AdSense program for websites specifically involved in illegal warez and porno activities. The last time I checked the statistics the lion portion of Internet visitors were there.
4 digits figure?
P.S.: What if the person holds his future lawyer in stock, and would like to learn from personal experience of others? After all, it cannot be denied that the portion of slashdotters used to live outside USA or with H1B working visa is not that insignificant. Personally, I know at least dozen H1B'ers who keep slashdot.org as home page in their browser.
If you open an account in country X and the web site is hosted in country Y, where neither X nor Y = USA, is there any real chance of getting busted?
It is extremely difficult to become a US Citizen. Trying to attain citizenship while on an H1-B visa is a long and slow process, often up to 7 or 8 years. We should be letting people pursue citizenship more quickly, but we don't, at least if they are on H1-B status.
Statistically speaking, there's a 99.998% chance that my IQ is higher than yours. Get over it.
>> On average, illegal immigrants kill 25 American citizens every day.
So you're saying we should let in 25 immigrants each day to replace them.
On average, illegal immigrants kill 25 American citizens every day. That's more than soldiers dying in Iraq - that's 12-14 times the number of people dead since 9/11 than died on 9/11.
Those numbers are made up by people with an interest in skewing the results. There is no formal statistically sound basis for those claims. But you are quoting a fear-mongering politician, what do you expect?
When information is power, privacy is freedom.
Those numbers are made up by people with an interest in skewing the results. There is no formal statistically sound basis for those claims. But you are quoting a fear-mongering politician, what do you expect?
As I understand it the government has been prevented from keeping a close tally on this, so the numbers given are the best available data. Even if they're not exactly right it's still a problem. Even if it's off by an order of magnitude (900 instead of 9000) it's still a problem.
Let's say it is off by an order of magnitude - is it worth 900 citizens' lives to get lawns cut cheaply? I won't make that trade-off.
The funny thing about statistics is their ability to hide gross atrocities. If someone were to call '900' acceptable on paper I doubt he could sit in a chair and watch each of them happen without 'popping a vein' as the OP said.
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As I understand it the government has been prevented from keeping a close tally on this
Yeah, prevented in the same way that atheism is a religion.
so the numbers given are the best available data
Crap is crap, it doesn't matter if it came out of a prince or a pauper, it is still just as useless.
Even if they're not exactly right it's still a problem. Even if it's off by an order of magnitude (900 instead of 9000) it's still a problem.
No, not really. Given the estimates of the number of illegal aliens in the US (10-20 million), 900 deaths, half of them by traffic accident puts them between just at and half the national average murder rate of 420 per 10M and significantly better than the 1,500 per 10M national average of traffic deaths per capita. Those numbers don't even account for manslaughter, just murders and traffic deaths. Making them significantly better than the average legal resident.
When information is power, privacy is freedom.
Using the numbers [from the same data] it would appear that you discount the 75% of Americans who are killed by non-immigrants as "OK"?
From comments on the article that I've linked: Based on King's numbers, the vast majority of murders in the United States are caused by non-immigrants. So either we let in more immigrants--thus watering down the murder rate--or we start getting rid of bona fide U.S. citizens.
As above: talk to a lawyer. I'm pretty sure there's a separate visa program for business owners, as opposed to employees. On the other hand, you probably have to give up the H1B to get it.
We are the 198 proof..
Using the numbers [from the same data] it would appear that you discount the 75% of Americans who are killed by non-immigrants as "OK"?
Of course not. It doesn't follow that if you remove the illegal immigrants those people would be killed anyway. There's no daily quota on murder.
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Maybe you should re-evaluate the story here http://www.thecarpetbaggerreport.com/archives/9201 .html [thecarpetb...report.com]
Sorry, I hit submit by accident.... reading this article I see they're equating arrested murderers with murders. Those are two different numbers. If the murderer isn't caught he's not in the statistics. A good argument they could make is proving the immigration status of of those who weren't caught.
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Yeah, prevented in the same way that atheism is a religion.
I'm going to have to give you that picture of the bunny with the pancake on his head. But to elucidate, it's clear that those in charge of the executive branch don't want to stem the tide of illegal immigrants and they set policy. Far be it from politicians to set policy that supports their positions.
Crap is crap, it doesn't matter if it came out of a prince or a pauper, it is still just as useless.
Numbers with error bars are better than putting one's thumb to the wind. It's better to proceed with best available data rather than throw up ones' hands complaining about the confidence interval and declaring progress impossible.
No, not really. Given the estimates of the number of illegal aliens in the US (10-20 million), 900 deaths, half of them by traffic accident puts them between just at and half the national average murder rate of 420 per 10M and significantly better than the 1,500 per 10M national average of traffic deaths per capita. Those numbers don't even account for manslaughter, just murders and traffic deaths. Making them significantly better than the average legal resident.
You seem to be under the impression that if there weren't illegal immigrants Americans would have to do the killing instead. There's no quota on murder. There might be some credence on the drunk driving side, as presumably those people were driving to fulfill an economic need (if they were on the job). At that it would be interesting to know if there's a study comparing drunk driving rates of the two populations - typically education and socioeconomic status are two indicators on those kinds of scenarios.
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Not really. US is a great country when it comes to business. I have been at a similar crossroads and this is what I found. Anyone can create a business in the US irrespective of their visa status. The catch is, you can not sponsor your own H1 and you can not earn second income from services while you are on H1 (including AdSense money). Here is what can be done, you can continue to get the money in your company and don't draw it ... let it sit in the company or further invest through your company. Remember, if you have a company it has to pay taxes (expect at least $800/yr, if you are making more than this on AdSense alone, I need to know what site you have :)).
One of the best places to incorporate business for people on H1 I felt is Nevada State. You can keep the owner anonymous you are protected by state laws. Second, they have bearer share/stocks meaning whoever holds the share certificate is the owner you do not require papers to show transfers etc..... You don't even need to be present in NV. This maybe of some help: http://www.companiesinc.com/ for starters.
As a caution, take my information with a grain of salt and do consult a professional.
HTH.
PS: No offence, but IMHO US is a great country with a mediocre and somewhat parasitic immigration policy.
Did you have authorization from the INS to be running an enterprise for pay, e.g. this little side project of yours? Doesn't matter you were paid via AdSense, you took on side work, even entrepreneurial, you were not authorized to perform.
Technically you're subject to immediate deportation for breaking the law.
--- Jump!! Fire!! Bullet time!! - Lego version of the Matrix
I'm going to have to give you that picture of the bunny with the pancake on his head. But to elucidate, it's clear that those in charge of the executive branch don't want to stem the tide of illegal immigrants and they set policy. Far be it from politicians to set policy that supports their positions.
Aethism is no more a religion than not collecting stamps is a hobby. In other words there has been no law passed, no directive made, no active intervention that PREVENTS the collection of these statistics. Every response you have to that will be based on your opaque assertion of transparency.
Numbers with error bars are better than putting one's thumb to the wind
Hello? Do you even understand basic statistics? If any of those studies even published error bars, they would be no more meaningful than the baseline numbers. You can not create valid information from bad data.
You seem to be under the impression that if there weren't illegal immigrants Americans would have to do the killing instead.
So, your argument boils down to - illegal immigrants are not saints, so they should burn at the stake. That same argument can be applied to any population, illegal or not, and is a direct path to a police state. Just look at the correlation between men under 30 and the murder rate, much much higher than the average, let's lock them for 10 years if they get a speeding ticket or are busted for littering. Hell, let's lock up every man for the most trivial offense because after all, there is no quota on murder, if those damn dirty speeders were in jail they wouldn't be killin anyone.
When information is power, privacy is freedom.
So, your argument boils down to - illegal immigrants are not saints, so they should burn at the stake.
Wow! That you would equate being denied illegal entry to a country and burning at the stake is simply astounding. Enforcing immigration law is not a path to a police state, it's the rule of law which is the basis for our stable, productive society. There are plenty of anything-goes societies available on Earth if that's preferable - Somalia is especially good since it doesn't have a functioning government. Geez, even Mexico jails and kills illegal immigrants coming over its southern border.
And yes, immigrants are held to a higher standard than the average citizen. At least until an immigrant is naturalized he's got to be on his best behavior. And this is for a reason - we want the best of the best as our immigrants. Check out some of the immigrants who participate here on Slashdot - they are the best of the best. Smart, upstanding, and fantastic people. They make America better, and we welcome them with open arms.
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That you would equate being denied illegal entry to a country and burning at the stake is simply astounding.
That you would equate illegal entry to a country with murder and vehicular manslaughter is simply astounding. See my original post about popping a vein because you just did.
When information is power, privacy is freedom.
That you would equate illegal entry to a country with murder and vehicular manslaughter is simply astounding.
.sig, but I guess I was expecting a civil debate. Silly me.
So when I say that illegal immigrants kill Americans, that's astounding but when you say stopping them is "burning them at the stake" that's, what, reasonable?
See my original post about popping a vein because you just did.
See, what I did was point out a logical non-sequitor in your argument. What you just did was an ad hominem attack. If I was interested in that I would have gone right for the link to a socialist periodical in your
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So when I say that illegal immigrants kill Americans, that's astounding but when you say stopping them is "burning them at the stake" that's, what, reasonable?
No neither are reasonable because they are the exact same argument. All I did was ape your own argument substituting different perps and different victims and you suddenly saw the light about how ridiculous your argument was, you just didn't realize it was your argument.
When information is power, privacy is freedom.
All I did was ape your own argument substituting different perps and different victims
Um, changing the subject and the object of a sentence changes its meaning.
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Um, changing the subject and the object of a sentence changes its meaning.
Lol, is that the best you can do? Cognitive dissonance must really have y'all shook up. The groups of people changed, but the severity of their 'crimes' did not, thus the meaning stayed the same.
When information is power, privacy is freedom.
I think what you want is a Delaware LLC. Foreign ownership doesn't matter as long as you have a "registered agent" in Delaware. I am not a lawyer, so this is the equivalent of legal advice you found on the underside of a Snapple bottle. But start your search there.
Small potatoes make the steak look bigger.
I think that I understand what you were getting at, but I don't believe that immigrants are any worse [or any better] than anyone else. We have immigrants up here in Canada, too. A small percentage feel the need to gather in groups of isolated ethnicity for the purpose of defence or agression. Gang activity existed long before their arrival, but these groups become a convenient scapegoat for *all* gang activity.
These problems will exist regardless of whether or not you allow new people to populate your land. Your initial post suggests a rather xenophobic view point. The fact that you continue to argue an "us against them" rather than trying to find a way to live together... Well, it continues to support that assumption.
Thats 12 murders and 13 road accidents, even if we believe the numbers that produced out of thin air with no citations. I see no reason to believe it because a politician says so - in case you did not know, it is not unknown for politicians to distort numbers, and these could be distorted in a number of ways.
Given how good Americans are at killing each other both by murder and in road accidents., the illegal immigrants contribution is not huge.
US death rates for both causes are very high by developed country standards. The numbers for Britain are approx 300 murders and 3000 accident victims, which even on a per-capita basis are much lower. The problem that needs to be solved lies elsewhere.
Given how good Americans are at killing each other both by murder [usdoj.gov] and in road accidents. [driveandstayalive.com], the illegal immigrants contribution is not huge.
It may not be huge statistically but if it's > 0, it's unnecessary, and tragic for the families of those affected.
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Your initial post suggests a rather xenophobic view point
You're making the classic mistake of confusing opposition to illegal entry with an opposition to immigration. I'm a huge proponent of immigration, and as we typically get the cream of the crop coming here legally, it improves our society greatly. You can check my comment exchange with an H1B worker from a few days ago if you're uncertain (on the H1B story). Heck, four of my great grandparents were immigrants. On the other side you have to go back a few more great's but no human evolved in North America, so all of my ancestors are immigrants.
What's strange is that folks here expect me to support my rule-of-law approach to illegal entry. Our stable society is based on this very concept, so I reject the notion entirely, and ask folks to try to convince me that we should allow illegal entry. Cheap lawn mowing and 5-cent-cheaper lettuce hasn't convinced me so far. My local economy is almost entirely devoid of illegal workers so it doesn't have a great impact on my life, but it does on others.
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I'm surprised nobody yet commented on how this case shows how broken the H-1b "Business Model" is. Isn't that the common slashdotian rap on all the other big organizations (e.g. *AA) who try to place artificial barriers on activities that seem so "natural" (e.g. sharing a song with your friend, time-shifting, place shifting, making money on google ads from traffic on your blog etc.) just to protect an technologically obsolete'd business model (making loads of money off of marketing and distributing content in un-necessary physical forms, "protecting" American jobs by artificially restricting economic activity by un-necessary and totally irrelevant geographical boundaries). The biggest irony here is that the OP could be carrying out *exactly* the identical economic activity sitting anywhere else in the world and it's perfectly legal... heck even makes an American company some money (what google is paying this guy is after all just a cut from what google *itself* is making from the advertisers, right?).
So where's the outcry for removing the bureaucratic restrictions that limit highly educated law abiding immigrant's earning potentials on all the different narrowly defined immigration categories (student visas, H-1B, research visas etc.). If we're accepting them in our fold, briging them in because we think it's in our benefit (debate it all you will... but that's what the legislation, the legal voice of this country, officially says), why treat them as sub-human by restricting them from engaging in activities that are otherwise considered perfectly legal and even desirable (creating a business, engaging in gainful employment, creating something of economic value in their free time) in our own citizens ?