Foreign 'Sole trader' income during K-1 and AOS

[Entheos 95]

I think that I've put this in the right spot, and I have searched around a little, however didn't find anything specific to my situation.

 

I am an Australian and I have an ABN (much like an LLC in the USA), as a sole trader (small business) with myself as the only business member.  This is for my work as a contractor to the company I am still technically contracted to.

 

My question is... If the company is still generating an income while I have moved and am immigrating, is that a violation of the 'unable to work till you have an EAD/Green card' situation.  I feel its clearly a business in another country, and it's income earned in another country, subject to the tax of that country, and paid into a non US Account...but then it also feels like it might be a grey area just knowing how US immigration and such seems to work.  Does anyone have any experience in this??  Owned a business which remained in business after you left that country, earned profits/income during their K-1 process and into AOS, and have any comments?

 

I'm looking for either way.... If anyone knows definitively... I can't see anything clear online... and I'm fearful to ask USCIS or DOS until I have my visa in hand for fear of it being interpreted as trying to skirt around the rules.  I'm definitely trying to find loopholes.... just trying to work out if I need to 'absolve' the company as I leave and enter on the K-1 or if it can remain 'in business'?

 

To me it's in the same kind of pot as earning interest on stocks/bank accounts, etc.... but then it may not be viewed that way by the people making the decisions?

 

Cheers.

[igoyougoduke 1,663]

are you  actively operating the company out of USA than yeah you are skirting the immigration rules 

[Entheos 95]

18 hours ago, James120383 said:

are you  actively operating the company out of USA than yeah you are skirting the immigration rules 

Yeah, This is also in my mind.  I think I'll just render the company into 'pause' mode until I have work authorization and go from there.  The company itself is self sufficient, and will 'run' on it's own, it's owner will just be residing in the USA.  Just wasn't sure if anyone else had had a company from their home country and experienced the same.  Thanks James for your reply.

[Wuozopo 4,293]

@Entheos

 

It is not clearly stated in law. You will only get opinions and interpretations of the law. Even immigration lawyers disagree.   Some people continue to work online, others quit until they get EAD. 
 

This is also an IRS issue. The fact that you get paid in a different currency makes no difference to the IRS. Once you live in the US, you claim worldwide income and pay taxes to the US and no longer to Australia per a tax treaty.  The start date of your residency, however is based on having a greencard or if you choose to file a joint return with your spouse and be treated as a resident alien for tax purposes.  Some info here https://www.irs.gov/individuals/international-taxpayers/tax-information-and-responsibilities-for-new-immigrants-to-the-united-states

 

If you choose  to earn prior to EAD  and pay US TAX on it to IRS, they do not report you to immigration. They collect tax from completely illegal immigrants using fake SSNs and they issue ITINs to illegals so they can file taxes. 
 

https://www.irs.gov/pub/irs-utl/20-Immigration and Taxation.pdf