Starting a Company on K1

[dutchmatt 1]

Hi I wondering if it's legal to go into a business partnership with a USC while in the US on a K1 without EAD? I do not want to recieve any income from this venture until I have my EAD/GC. Is this legal? I'm looking at this as an investment right now as I am not taking a salary. Any thoughts?

[Anh map 2,098]

Making an investment is ok. Working is what is not allowed.

There have been several discussion here on VJ about this. From what I recall the issue is whether a person is doing something that would typically have a form of compensation. So for example volunteering to do a job that would typically be a paid position would not pass the "smell test."

[payxibka 10,047]

Making an investment is ok. Working is what is not allowed.

There have been several discussion here on VJ about this. From what I recall the issue is whether a person is doing something that would typically have a form of compensation. So for example volunteering to do a job that would typically be a paid position would not pass the "smell test."

but could the same logic also apply here? Where you are starting a business and it would normally be a paid position, but is not simply because you as the owner decided not to draw a salary? In other words, would a non-owner expect compensation for the services being performed during this "startup" period?

[Anh map 2,098]

It's definitely a foggy, gray area. I guess what the immigrant has to consider is how they would answer the question(s) about work at the AOS interview.

Is providing unpaid services to your start up business considered work? As opposed to making an investment where all you do is provide funds and earn interest and/or gain equity.

[justashooter 430]

list your wife as sole proprietor and add yourself at a later date in a business agreement. she can get the EIN and open the business without any of your docs being involved. my wife is opening a firearms sales and gunsmithing business. i am listed as a responsible party in a consulting role, without salary. since we are not going corporate, the income will be listed on our joint 1040 return as hers, thru a 1099 filed by the EIN to her only.

[payxibka 10,047]

list your wife as sole proprietor and add yourself at a later date in a business agreement. she can get the EIN and open the business without any of your docs being involved. my wife is opening a firearms sales and gunsmithing business. i am listed as a responsible party in a consulting role, without salary. since we are not going corporate, the income will be listed on our joint 1040 return as hers, thru a 1099 filed by the EIN to her only.

Actually close, but if it is an unincorporated business then it can be a partnership or a sole proprietorship... Partnership results come to the 1040 via a form Form 1065 Schedule K-1 and is reported primarily on Form 1040 Schedule E or a sole proprietorship reported via Form 1040 Schedule C... No 1099 required but end result is the same....

Edited December 4, 2009 by payxibka