Sole proprietor proof of pay?

[mike42979 57]

Hello and thank you for your help has anyone been through a self run business during your application?

If i start a business as a sole proprietor how can i prove my income, its not like ill get a paycheck or anything unless i open up a business bank account and write me me own checks???

[Anh map 2,098]

Line 22 of your most recent year's tax return is used as the income earned.

[mike42979 57]

Line 22 of your most recent year's tax return is used as the income earned.

So on the I-134 i dont list my current self employment and i just list my last employer????

[Audy_Rob 26]

No, no, no. Of course you list your current job/position and list your annual salary as an annualized amount based on current expectations. You need to document current income using bank statements to show deposits in to the account. You can also make copies of checks received for work performed. Documenting current income is very important.

You probably will need to provide three years of tax transcripts or tax returns since you are now self-employed. It helps to show an overall sound financial picture which is very helpful if you are dealing with USEM.

Good luck.

[Anh map 2,098]

Are still currently employed? Or are you only working in your own (new) business currently?

[mike42979 57]

Are still currently employed? Or are you only working in your own (new) business currently?

Im still employed but may be leaving my job very soon to pursue my own business.

[Anh map 2,098]

Manila is tough on accepting joint sponsors for K visas. For immigration purposes it would be better to have a wages that meet the requirement rather than a newly started business. Of course that may not be possible/practical in your case.

[pushbrk 13,123]

Im still employed but may be leaving my job very soon to pursue my own business.

Then do your I-134 now, before you leave your work. Once you're self-employed, you'll be stating ZERO as your current income until that income shows up on line 22 of you NEXT tax return, as in 10 months from now.

[pushbrk 13,123]

No, no, no. Of course you list your current job/position and list your annual salary as an annualized amount based on current expectations. You need to document current income using bank statements to show deposits in to the account. You can also make copies of checks received for work performed. Documenting current income is very important.

You probably will need to provide three years of tax transcripts or tax returns since you are now self-employed. It helps to show an overall sound financial picture which is very helpful if you are dealing with USEM.

Good luck.

Sorry but the above is dead wrong. For immigration purposes, the self employed can claim current income only when it appears on line 22 of the most recently filed tax return. Fortunately, the OP is still employed, so can state employment income now.

"Business revenue" is not the same thing as "income" in this context. Income is on line 22 of a self employed person's 1040. If they also have non-taxable income like Social Security etc. that can be added to line 22.

[Audy_Rob 26]

Sorry but the above is dead wrong. For immigration purposes, the self employed can claim current income only when it appears on line 22 of the most recently filed tax return. Fortunately, the OP is still employed, so can state employment income now.

"Business revenue" is not the same thing as "income" in this context. Income is on line 22 of a self employed person's 1040. If they also have non-taxable income like Social Security etc. that can be added to line 22.

While in theory you think you have rock solid evidence of this, but in practice this is dead wrong. Numerous self-employed have posted 100's of times of success by clearly documenting and proving current income. Getting a CPA to draw up some books is not good enough. Documenting a trail or stream of income is excellent.

Although in this case it is highly likely if he leaves his job there still will be no income to document.

[pushbrk 13,123]

While in theory you think you have rock solid evidence of this, but in practice this is dead wrong. Numerous self-employed have posted 100's of times of success by clearly documenting and proving current income. Getting a CPA to draw up some books is not good enough. Documenting a trail or stream of income is excellent.

Although in this case it is highly likely if he leaves his job there still will be no income to document.

Cash flow and income are not the same thing. Bank records are used to document assets, not "income". Tax returns, W2 forms, award letters for tax free income etc. are used to document income. Lots of self employed people qualify on assets. That's where bank records come in. A sole proprietor can show lots of cash flow without having any profit or income. Here's a classic example.

Small retail facility has cash flow into the bank account of $50,000 a month. That's $600,000 a year in cash flow. Looks good, right? Here's the real story.

Inventory purchases of $500,000 during the year plus $10,000 a month in rent, utilities, advertising and taxes, leaves a $20,000 loss. Now, that same business might have 3 to 400K in inventory and fixtures that could be sold, so their balance sheet looks good. They may also have a couple hundred grand in excess cash. That sole proprietor has a negative income but MIGHT qualify based on assets. Their bank records would be critical in qualifying but NOT to show "income".

Bank records show "revenue" or cash flow, not "income". Consular officers are well trained in this. That's why "tax returns" are critical and why so many self employed people have a difficult time qualifying to sponsor an immigrant. The tax advantages business people have, all reduce their "income", even though they have plenty of money with which to pay personal expenses. Many expenses that are deductible to the business person are everyday personal expenses to the employee. This sword cuts both ways. Live by it and die by it.

[payxibka 10,047]

moving thread to:

US Embassy and Consulate Discussion

This is the place to post your experiences or questions related to this last step before moving to the US. Topics relating to I-134's, packets sent from consulate and medical & police certificates should be posted here.

[mike42979 57]

Cash flow and income are not the same thing. Bank records are used to document assets, not "income". Tax returns, W2 forms, award letters for tax free income etc. are used to document income. Lots of self employed people qualify on assets. That's where bank records come in. A sole proprietor can show lots of cash flow without having any profit or income. Here's a classic example.

Small retail facility has cash flow into the bank account of $50,000 a month. That's $600,000 a year in cash flow. Looks good, right? Here's the real story.

Inventory purchases of $500,000 during the year plus $10,000 a month in rent, utilities, advertising and taxes, leaves a $20,000 loss. Now, that same business might have 3 to 400K in inventory and fixtures that could be sold, so their balance sheet looks good. They may also have a couple hundred grand in excess cash. That sole proprietor has a negative income but MIGHT qualify based on assets. Their bank records would be critical in qualifying but NOT to show "income".

Bank records show "revenue" or cash flow, not "income". Consular officers are well trained in this. That's why "tax returns" are critical and why so many self employed people have a difficult time qualifying to sponsor an immigrant. The tax advantages business people have, all reduce their "income", even though they have plenty of money with which to pay personal expenses. Many expenses that are deductible to the business person are everyday personal expenses to the employee. This sword cuts both ways. Live by it and die by it.

Ok im a little worried, and am uncertain of what to do, you said file I-134 now but i already filed my I-129f i dont want to interupt my filing. What if i open a business bank account and cut myself checks from my company and instead of being a sole proprietor i incorporate as an LLC? There has to be a way, i have 4 years of tax returns with the current job showing i made 24k a year and about 7K in the bank. Oh and BTW thank you everyone for the help.

[pushbrk 13,123]

Ok im a little worried, and am uncertain of what to do, you said file I-134 now but i already filed my I-129f i dont want to interupt my filing. What if i open a business bank account and cut myself checks from my company and instead of being a sole proprietor i incorporate as an LLC? There has to be a way, i have 4 years of tax returns with the current job showing i made 24k a year and about 7K in the bank. Oh and BTW thank you everyone for the help.

An I-134 is not "filed". You complete and sign it, then send it to your fiancee to carry to the interview. It has a date. If, on that date, it is accurate as to employment and income and that date is within a reasonable time prior to the interview, you should be OK. If I were in your shoes, I would delay leaving my job until affidavits of support were not a part of my near future. You'll be filing one to get the visa and another after marriage, to adjust her status.

Edited March 28, 2011 by pushbrk

[mike42979 57]

An I-134 is not "filed". You complete and sign it, then send it to your fiancee to carry to the interview. It has a date. If, on that date, it is accurate as to employment and income and that date is within a reasonable time prior to the interview, you should be OK. If I were in your shoes, I would delay leaving my job until affidavits of support were not a part of my near future. You'll be filing one to get the visa and another after marriage, to adjust her status.

Under instructions for i-134 cant i use options A or B for evidence of support?

http://www.uscis.gov/files/form/i-134instr.pdf