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LLC co-founder on EAD but no salary

Discussion in 'Start up company issues' started by berry78, Nov 23, 2010.

  1. berry78

    berry78 Junior Member

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    Hi Ron,

    I am on EAD with a pending I-485 (Priority date: Feb 2007. EB2). I left my employer to start my own company about 4.5 months ago. I have started the company with 2 other friends who are US citizens. The company is registered as an LLC with documents showing me as a co-founder of the company. In addition to being a co-founder I am working as a "software engineer" for my company, the same profession I had put on I140.

    My questions are as follows:
    1. We are actively (full-time) working on the product since last 4.5 months. Our company is not funded yet. So none of us are taking any salary (no pay-stubs for employment verification). Is that an issue? I have heard that it is risky to go without pay checks for more than 6 months while on EAD with pending I485. I am getting close to the 6month boundary if any such boundary even exists.

    2. Should I file an AC21 through my new company, before it gets funded. FYI.. It is registered as LLC. already?

    Thanks.
     
  2. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: LLC co-founder on EAD but no salary

    The law does not require you to file anything. If the CIS were serious about wanting people to let them know when they change jobs, they would have promulgated lawful regulations in the more than ten years since the AC21 statute took effect. The law requires you to work in the same or similar occupational classification. You are working (albeit not getting paid right now). At the same time, you are being compensated in the form of equity in your company. I don't see a problem.
     
  3. berry78

    berry78 Junior Member

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    Re: LLC co-founder on EAD but no salary

    Thanks a lot for the clear and concise reply Ron.

     
  4. berry78

    berry78 Junior Member

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    Re: LLC co-founder on EAD but no salary

    Hi Ron,

    This is in regards to the the same question I had started this thread with. Please refer to my question and your corresponding answer.

    My lawyer now is saying that in some immigration conference last week she heard that USCIS now is getting a little stricter about AC21 filings, and hence she is now recommending me to fill out an AC21 for my start up.

    I had started working for my startup as a co-founder and a full-time software engineer an year ago. I am concerned about the "gap" I will have to show on AC21 (i.e. I am filing AC21 a year after I actually started my employment).

    My questions are as follows:
    1. Is this AC21 "gap" a problem?
    2. Should I even file an AC21 now? (My PD is 2006 Feb. Will be current in July this year as per the July visa bulletin. So I am expecting decision in 3-4 months now.)
    3. What salary do I put on AC21 for the 1 year in which I was being paid in equity? (I was paid in equity from Aug'10 to June'11, and our salaries start from July'11 as we have secured some angel funding now).

    Hope my questions are clear. Please let me know if they are not.

    Thanks.
     
  5. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Re: LLC co-founder on EAD but no salary

    You have to discuss this with your lawyer. Obviously, you didn't read the rules of the forum which state that I can't answer questions posted by people who are already represented by counsel as it is a possible ethical violation for me to do so.
     
  6. manishmanish

    manishmanish Junior Member

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    Re: LLC co-founder on EAD but no salary

    Hi Berry78 - can you please tell me what exactly did you do? I am in the same boat and quite nervous if I am doing the right thing. I established my LLC and started working for it. But now there are no revenues at this point. Should I pay myself a salary?
     

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