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Amway Business OK?

Discussion in 'General HR issues' started by dhivya, Dec 2, 2010.

  1. dhivya

    dhivya Member

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    Hi Ron,

    I've a general question. Can a person who is holding H1 or H4 status allowed to do Amway Business?
    You start by earn approx $100-200/month and it can go up to $1500-2000/month.

    I hope you know about Amway where you sell stuff and earn commissions, once you move up the ladder you start earning more commissions etc.

    Will this cause any issue during the Green card process?

    Thanks.
     
  2. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Amway Business OK?

    That shouldn't be a problem.
     
  3. Colworth

    Colworth Member

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    Re: Amway Business OK?

    dhivya,

    I would add a little more to what Ron said, as I think a one line answer is insufficient to cover the situation fully.

    You ask specifically about this on H1B and H4 status. It is not clear whether you have pending I-485 applications as well.

    If you are relying solely on H1B and H4 status then you cannot participate in the Amway business. If you are AOS Pending and have valid EADs you can use, then that would be OK, but you couldn't remain in H status.

    H1B (outside of the wage earned from the sponsoring company) and H4 are only allowed to earn PASSIVE income i.e. no work is performed in earning the income. Interest earned on savings would be a good example.

    The Amway business requires you to work at building up networks and selling items. The commission earned is NOT passive income and would be classified as having been earned through employment.

    If an H1B works for anyone other than their sponsoring employer, or if an H4 works at all, they lose status and in the absence of an EAD, engage in unauthorized employment.

    If the people concerned have a pending I-485 and an EAD, that will give the Employment Authorization necessary.

    However, working in the Amway business will cause loss of H status and result in the person becoming an AOS applicant, with no underlying non immigrant status.

    If the H1B works on the Amway business, both H1B and H4 will lose status and the H1B will have to use the EAD for the main job as well.

    If the H4 alone is involved in the Amway business, then they will become an AOS applicant, but the H1B can continue in H1B status.

    You should read this thread on Trackitt where, on the face of it, USCIS denied an I-485 because of previous unauthorized employment. USCIS determined that involvement with Amway constituted unauthorized employment.
    http://www.trackitt.com/usa-discuss...e-based-business-and-green-card-fiasco/page/1

    The person concerned had to clear the unauthorized employment by leaving the US, being readmitted in H1B status and then waiting for his PD to become current again so that he could submit a fresh I-485 application.
     
  4. ossifraga

    ossifraga Junior Member

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    Re: Amway Business OK?

    Colworth,

    how about H-1B and H4 visa holder will not be selling products but only use them, then they get a rebate. would they lose their H status?

    What if the H visa holder told the concept to someone who does the same thing, then that someone only buys products and consumes it, then both of them gets their respective rebates. Now what if they just did the same thing and not sell products, just consume, then they told their friends and their friends friends, they save money from their BNC(Basic Necessities Consumption) and get rebates at the end of the month, the one who started it (H visa holder) reaches to the top of the bonus scale and so as the people he/she invited, the H visa holder will get a 4% royalty income, would he/she still lose the H status?

    Building the network is just a voluntary thing to do, can only be done 2-4 hrs a week. I have read in some forums that the H visa holder can do voluntary work.

    Please correct me if I am wrong about the last line that I have typed.
     
  5. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Amway Business OK?

    If you do not engage in the kind of work that would normally be done by someone earning pay for what they do, then you don't need work authorization.
     
  6. psubbu79

    psubbu79 Junior Member

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    Re: Amway Business OK?

    Hi Ron,
    Apologize for asking the same question. I have been doing the Amway business for a few years now and am on an h1 visa. We have always been told this statement "A person can have only one paycheck on H1, but can have any number of 1099s". is that true? Could you please explain the relationship between earning additional income on the 1099-Misc form and filing losses for the activities that we perform, and how it could if it will, affect the green card process. Colworth's message is confusing and since you are the expert, I want to check with you.

    Thanks so much for the information
    Subbu
     
  7. Anjali

    Anjali Junior Member

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    Hello Subbu, and Dhivya,
    I just came across this thread. Ron is correct. You can "join" and even "do" the Amway business. "There is no specific law or regulation which would prevent a F-1 or J-1 student who is in legal valid non-immigrant student status from starting up his or her own business. "
    Check this out: http://blog.immigration-america.com/archives/571. This applies for H1 also. H1 is even less restrictive than an F1 Visa.

    Moreover the corporate entity by default, when you join Amway is a Sole-Proprietership. As you will see, all these entities are state issues (C Corp, LLC etc). A foreign national (F1, H1) can form any of these entities except for a S corp. The state (US states) does not care, if someone is a citizen of the US or not, when you set up a corporation. So, if you are already in the business, there is nothing to worry. Yes, "self-employment", is not allowed under F1 or H1, but Amway, in the beginning will not give you enough income to be considered as "self-employment". I worked at a law office for many years, and I have never seen a single case, where an officer rejected the 485 approval because of this. If someone challenges you about this fact, ask for the specific case law. It has to be a document on the justice.gov site. For example: http://www.justice.gov/eoir/vll/intdec/vol11/1647.pdf. Without case law, anyone can claim anything, but it cannot be taken as a fact.

    Personally I could never do Amway. So, I am not talking about the viability or the potential of that business; that is a different issue, something, where you have to make your own judgement call. But, there is no reason, not to "join" or continue Amway, because you are a foreign national on a F1 or H1. Again, from my experience, Amway might not work for you; but let that be your call, without immigration worries. Hope this helps. Best!
     
  8. balji_us

    balji_us Junior Member

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    Its is so funny when somebody says it will not work. when 100's of people making money.
     

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