Start your own business on EAD or start a business owned by dependents on EAD, risks

[shana04]

Please no critic, if you can provide some or any info will be appreciated and would be helpful for everyone who is interested on this topic.

Don’t redirect everyone to other threads, we all have come to this thread because we have applied to I 485 and received EAD and are interested in our next steps

1. Can and H1B holder or H1B with EAD own a company? If yes what is the risk involved in I485

2. Can a H4 Holder with EAD own a company? If yes what is the risk involved for the primary applicant?

3. What sort of companies can an EAD holder start? What is the risk involved?

4. What sort of liabilities is involved? Any insurance to protect

5. How much is the tax involved? And does it depend on State to state? If yes any info would be helpful

6. Can we start the company from our own apt/condo/house? Do we need to be in the same city/state, where we have started our company? Are there any tags or loop holes

7. Can the primary holder work part time for the company owned by dependent on EAD

8. Can the primary holder use EAD for part time (any job) or working part time for the company owned by EAD (dependent), is there any risk involved?

9. How much would be initial cost involved and what would be the approx tax for the first few years?

10. Initially do we need any attorney or paralegal to help in setting up the company?

11. Can we use AC21 for the company started by spouse who is on EAD?

12. What info do we need for kicking off AC21? Risks involved, info / suggestions always appreciated

13. Benefits or uses of EAD for Primary, dependent

All the senior people out there, who have got their EAD and waiting for your GC please advice and guide us in the right direction, so that we can make a better use of our EAD. Risks involved, important points to consider on various stages of I 1485 process, and your valuable suggestions would help us in making our lives a little better

Any more questions or suggestion or input on this topic would be helpful for me and our friends.

Please add your questions, suggestions, ideas, inputs and critics to the questions, if the question is not framed properly and not to the thread itself

Thanking all of you in advance for your valuable suggestion and posts

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[kumhyd2]

summerization of answers would be greatly appreciated.

[shana04]

Originally Posted by kumhyd2

summerization of answers would be greatly appreciated.

Friends,

If we can come up with more FAQ and find answeres would be of great help to each other.

[gc_chahiye]

Originally Posted by shana04

Please no critic, if you can provide some or any info will be appreciated and would be helpful for everyone who is interested on this topic.

Don’t redirect everyone to other threads, we all have come to this thread because we have applied to I 485 and received EAD and are interested in our next steps

1. Can and H1B holder or H1B with EAD own a company? If yes what is the risk involved in I485

you can start it with H1B also, but its full of gotcha's (you cant work for the company, cant draw salary etc). With EAD, no such restrictions. If you also continue fulltime on your GC sponsoring job, then no risk at all. If you try to call that job 'future employment' or try to use AC21 to port to your own company, its potentially risky. See earlier threads (esp by UnitedNations) on this issue, both on IV as well as immigrationportal.com

Originally Posted by shana04

2. Can a H4 Holder with EAD own a company? If yes what is the risk involved for the primary applicant?

yes, no risk for primary (assuming primary is continuing on GC sponsoring job, and not trying to use AC21 and port to this company.

Originally Posted by shana04

3. What sort of companies can an EAD holder start? What is the risk involved?

any kind. same risk as if a citizen were starting a company.

Originally Posted by shana04

4. What sort of liabilities is involved? Any insurance to protect

start an LLC so you cant be personally liable for losses etc. Get liability insurance so if you get sued, your insurance company can step in with teh moolah (or lawyers to defend you). Get an accountant to do your taxes.

Originally Posted by shana04

5. How much is the tax involved? And does it depend on State to state? If yes any info would be helpful

depends on state to state. In addition to taxes you pay a certain fixed amount to maintain the incorporation ($750 per year in CA as far as I know).

Originally Posted by shana04

6. Can we start the company from our own apt/condo/house? Do we need to be in the same city/state, where we have started our company? Are there any tags or loop holes

you can start from your own apt/condo/house/garage. There used to be some loopholes where if you incorporate in states like Nevada or Delaware you dont need to pay the annual fees to teh state. However if you are primarily doing business in CA, then you still need to pay CA and everything evens out in the end. General recommendation now is to incorporate in the state where you are living (& will primarily be doing business).

Originally Posted by shana04

7. Can the primary holder work part time for the company owned by dependent on EAD

yes.

Originally Posted by shana04

8. Can the primary holder use EAD for part time (any job) or working part time for the company owned by EAD (dependent), is there any risk involved?

standard risk of moving of H1 to EAD: if your 485 is denied, yuo are immediatelty out of status. WOrking for your spouses company part-time does not add to the risk in any way.

Originally Posted by shana04

9. How much would be initial cost involved and what would be the approx tax for the first few years?

depends on state.

Originally Posted by shana04

10. Initially do we need any attorney or paralegal to help in setting up the company?

no, you can incorporate on your own. Just get some books from the library (starer kits from NOLO for instance). You should get an accountant for tracking your finances and taxes etc.

Originally Posted by shana04

11. Can we use AC21 for the company started by spouse who is on EAD?

doable, but be prepared for questioning if interviewed (this is easier, simpler
than trying to port to self). will try to find unitedNations posts on this issue. He almost did this (port to self) and is the expert in such matters.

Originally Posted by shana04

12. What info do we need for kicking off AC21? Risks involved, info / suggestions always appreciated

only risks that I have come across are:
- RFEs sometimes go to old lawyer and they may/may-not tell you about it.
- old company might revoke I-140 past 180 days and USCIS will deny the I-485 (incorrectly) and you end up going through the hassle of MTR etc. THings work out ok, but its unnecessary tension.

Originally Posted by shana04

13. Benefits or uses of EAD for Primary, dependent

primary:
- can take up a part-time job
- can take up multiple jobs
- more job opportunities than on H1 alone

dependent:
- unrestricted employment
- can start-stop working whenever they want (useful for people planning to start a family)

[shana04]

Originally Posted by gc_chahiye

you can start it with H1B also, but its full of gotcha's (you cant work for the company, cant draw salary etc). With EAD, no such restrictions. If you also continue fulltime on your GC sponsoring job, then no risk at all. If you try to call that job 'future employment' or try to use AC21 to port to your own company, its potentially risky. See earlier threads (esp by UnitedNations) on this issue, both on IV as well as immigrationportal.com



yes, no risk for primary (assuming primary is continuing on GC sponsoring job, and not trying to use AC21 and port to this company.



any kind. same risk as if a citizen were starting a company.



start an LLC so you cant be personally liable for losses etc. Get liability insurance so if you get sued, your insurance company can step in with teh moolah (or lawyers to defend you). Get an accountant to do your taxes.



depends on state to state. In addition to taxes you pay a certain fixed amount to maintain the incorporation ($750 per year in CA as far as I know).



you can start from your own apt/condo/house/garage. There used to be some loopholes where if you incorporate in states like Nevada or Delaware you dont need to pay the annual fees to teh state. However if you are primarily doing business in CA, then you still need to pay CA and everything evens out in the end. General recommendation now is to incorporate in the state where you are living (& will primarily be doing business).



yes.



standard risk of moving of H1 to EAD: if your 485 is denied, yuo are immediatelty out of status. WOrking for your spouses company part-time does not add to the risk in any way.



depends on state.



no, you can incorporate on your own. Just get some books from the library (starer kits from NOLO for instance). You should get an accountant for tracking your finances and taxes etc.



doable, but be prepared for questioning if interviewed (this is easier, simpler
than trying to port to self). will try to find unitedNations posts on this issue. He almost did this (port to self) and is the expert in such matters.




only risks that I have come across are:
- RFEs sometimes go to old lawyer and they may/may-not tell you about it.
- old company might revoke I-140 past 180 days and USCIS will deny the I-485 (incorrectly) and you end up going through the hassle of MTR etc. THings work out ok, but its unnecessary tension.



primary:
- can take up a part-time job
- can take up multiple jobs
- more job opportunities than on H1 alone

dependent:
- unrestricted employment
- can start-stop working whenever they want (useful for people planning to start a family)

Thanks for the useful info, I read about unitednations before, the way he fought for someone else to get there greencard, he is not an attorney
*would do some research on him.

[vikki76]

It is allowed. You can do moonlighting in other jobs using your EAD, and still hold job with original GC sponsoring employer

[fall2004us]

thanks gc_chahiye,
very useful information....

[ItIsNotFunny]

Originally Posted by gc_chahiye

you can start it with H1B also, but its full of gotcha's (you cant work for the company, cant draw salary etc). With EAD,

.....

- can start-stop working whenever they want (useful for people planning to start a family)

Good information. Thanks a ton.