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Forming C Corp on H1/H4 Question

Discussion in 'Start up company issues' started by dumbguy, Mar 2, 2010.

  1. dumbguy

    dumbguy Junior Member

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    Hi - I am currently on H1 visa and my spouse on H4. I am planning to start an online business which will accept payments from customers of different countries. Now the only problem I am facing is that in order to accept the payments online, I have to open a merchant account and a bank account and to do that, either me, or my wife has to submit a SSN or ITIN. And I know we cannot legally do any other work than my for my employer on H1.

    So I started looking for some advice, and here's the info I got so far:

    1. Form an Indian company with my family as owners.
    2. Form a C Corp in US, as a subsidy of Indian company, and apply for FEIN. The members of this C Corp can be same non US residents.
    3. My wife will be corporate secretary of the C Corp in order to visit the bank and open a bank account. Not sure is she can do this on H4 visa.

    Is this how things work for people on H1/H4 so they can start a venture like this? Or is there a different suggested approach?

    Also..when you register company through services like legalzoom or bizfiling, don't they give you a registered agent who can be that person who is managing the day to day administration tasks for company?

    Thanks..
     
  2. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Forming C Corp on H1/H4 Question

    You may use your existing SSN or ITIN. If all you are doing is what you have written, that does not violate your nonimmigrant status.
     
  3. dumbguy

    dumbguy Junior Member

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    Re: Forming C Corp on H1/H4 Question

    Thanks Ron - let me ask a different question (approach)..

    How can a non US resident start a company in US? I am thinking the following strategy -

    Someone from my family, who doesn't have a US visa, forms a LLC or C-Corp in US. Then gets a EIN number. And then fly down to US for a vacation and open a US bank account.

    Does this approach work? What about taxes and other issues? Is income taxable in India or in US?
     
  4. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Forming C Corp on H1/H4 Question

    Anyone may establish and own a company. They can't work for the company without permission, but they can own it.
     
  5. dumbguy

    dumbguy Junior Member

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    Re: Forming C Corp on H1/H4 Question

    They can't work even if they are in India? If not, can they hire employee in India to do the work, or is it necessary to have a US employee?

    What you are saying is that anyone in any country can form a company in US but they cannot work for that company even in their home country. Isn't that confusing?

    Let me ask you then how things work if someone wants to form a US company and then build a business?

    Are you available for consultation? Can you PM me your fee/contact info please?
     
  6. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Forming C Corp on H1/H4 Question

    They can't work in the US. What they do abroad is of no consequence here.
     
  7. whattodoeb2

    whattodoeb2 Junior Member

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    Re: Forming C Corp on H1/H4 Question

    Hi Ron - I understand that H1B holder can be a passive investor and form an LLC. Can you let me know whether this H1B holder can open a bank account for the LLC using his/her SSN/ITIN? And Can this H1B holder be one of the check signing authority and still be considered a passive investor?
     
  8. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: Forming C Corp on H1/H4 Question

    Yes to both questions.
     
  9. Roy Vargis

    Roy Vargis Super Moderator

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    Re: Forming C Corp on H1/H4 Question

    If you have an option of not being an authorized signatory, that will be preferable.
     

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