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smallville1
07-24-2013, 01:03 AM
I have a website that i am going to sell. I am on h1-b now and never had any income from website in my account. the payments were managed and servers paid from out of US. ofcourse there was no profit for all these years. But the website has some value now and I want to sell it. Is it ok to do this while on h1b?

Will this cause any problem for me in future while applying GC?
which tax category would this come in? (captial gain?)

Please advise.

Thanks

imh1b
07-24-2013, 07:00 AM
I see no problem. On H1b you can even start a company and run business. People take too much tension in life and ruin it.

imh1b
07-24-2013, 07:03 AM
Check with your CA how you will apply tax to it. People do side income all the time. Some people sell on EBay too.

krishmunn
07-24-2013, 08:18 AM
I see no problem. On H1b you can even start a company and run business. People take too much tension in life and ruin it.

Incorrect. On H1 you cannot run your own business. You can invest in a business and share profit but not work on running the business.

OP , see this -- Home-Based Businesses: Inadvertent Unauthorized Employment Murthy Law Firm : U.S. Immigration Law (http://www.murthy.com/2012/12/11/home-based-businesses-inadvertent-unauthorized-employment/)

greyhair
07-24-2013, 09:28 AM
Incorrect. On H1 you cannot run your own business. You can invest in a business and share profit but not work on running the business.

OP , see this -- Home-Based Businesses: Inadvertent Unauthorized Employment Murthy Law Firm : U.S. Immigration Law (http://www.murthy.com/2012/12/11/home-based-businesses-inadvertent-unauthorized-employment/)

Doesn't matter what some lawyer says. Be careful when taking advice from lawyer because some may want to increase your pain just to extract more money from you later.

You can run a business as long as you are not paid as employee. It means you are doing voluntary work for your company. But you can invest and make profit on your investment.

So if you sell your website, you are cashing out of your business, meaning you are taking out your investment. In which case you just pay tax on your investment. So it depends on the method of how you draw the money. If you draw the money as salary that could be inappropiate. If you draw as cashing out of investment, I think that is totally legal, just as investing in stocks.

I believe, on H-1 you can accept voluntary work for any company as long as you are not paid.

krishmunn
07-24-2013, 10:02 AM
Doesn't matter what some lawyer says. Be careful when taking advice from lawyer because some may want to increase your pain just to extract more money from you later.


I am amazed at how people ignore Lawyer's advice ! Did you guys file your 140 and 485 yourself (PERM is Employer paid) or did you hire a lawyer ? If you know so much about law why don't you open a legal service yourself.

At least in this case, the lawyer has warned you free of cost. Lawyer will make money only if you do not heed to the warning and invite the trouble




You can run a business as long as you are not paid as employee. It means you are doing voluntary work for your company. But you can invest and make profit on your investment.

So if you sell your website, you are cashing out of your business, meaning you are taking out your investment. In which case you just pay tax on your investment. So it depends on the method of how you draw the money. If you draw the money as salary that could be inappropiate. If you draw as cashing out of investment, I think that is totally legal, just as investing in stocks.



When you invest in stock you do not work for the company . Here , you are gaining money out of your work. That is the difference.



I believe, on H-1 you can accept voluntary work for any company as long as you are not paid.


You belive ? And you are asking someone to risk his H1 based on your belief ignoring what some of the very reputed lawyers say ?

BTW, on H1 you CANNOT volunteer for a for profit company.

imh1b
07-24-2013, 10:23 AM
krishmunn what you are showing are typical symptoms of a person fairly new to the country and scared about the new culture, laws and system of the country. Since you are from India you are used to corruption, lawlessness, poverty and unclean surroundings. When many such people land here it is a shock for them. When they see everyone standing in line everywhere, no jumping red lights, not honking every minute, being polite to others...... they get more scared. When they start coming more to forums and see other people scaring them and running to lawyers they start worshiping them too. These people spend a lot of money for simple answers. Sometimes they get charged even for reading their email. These people know the weak spot and many are happy to spend thousands.

You belong to those. Slowly when you spend more time in the country you will understand how things work and that you do not need to be in a state of tension all the time in life and worry. You will learn to differentiate between people. You will know it is all not that complex it seemed earlier to you.

As you grow more here, you will make friends outside your Desi H1B circle. You will realize that those desi H1B friends had kept you in dark and you were living an isolated life. Move out and make friends with people who have become citizens, greencard holders and people who were brought up here. You will know more deeply about the country. You cannot learn about the country by living on the forums and talking to your other desi H1B friends in your 'curry den' as anti-immigrants name it. Move out and see the world. You will gain a lot of confidence in life and do better.

kiran_pathuri
07-24-2013, 11:12 AM
You can start your own business on H1B. I have started one myself and owns 30% share in it. I am a passive partner in the business and I do some voluntary work. If your share is less than 50% and you work for less than 350 hours a year, you can claim yourself as a passive partner. I have filed 2 H1B extensions after starting the company and while replying to an RFE, once sent all my tax returns as well which shows my buisness income in it.

You can even own 100% share in your business, but you need to employ someone else to run the business.

imh1b
07-24-2013, 11:44 AM
You can start your own business on H1B. I have started one myself and owns 30% share in it. I am a passive partner in the business and I do some voluntary work. If your share is less than 50% and you work for less than 350 hours a year, you can claim yourself as a passive partner. I have filed 2 H1B extensions after starting the company and while replying to an RFE, once sent all my tax returns as well which shows my buisness income in it.

You can even own 100% share in your business, but you need to employ someone else to run the business.

Your answer is over complicating the issue. The OP asked a simple question and giving more information than needed makes people confused. This is why forums confuse and scare people. The guy has a website and he just wants to sell it. It is not a registered company in US and he has no employees in US it seems. So why are you applying company laws to him?

He can simply go ahead and sell it. No need to worry. H1B is a visa where people live a life of being scared. This is why they are exploited. We should encourage people to come out of that state.

checkmet64
07-24-2013, 11:47 AM
You can start your own business on H1B. I have started one myself and owns 30% share in it. I am a passive partner in the business and I do some voluntary work. If your share is less than 50% and you work for less than 350 hours a year, you can claim yourself as a passive partner. I have filed 2 H1B extensions after starting the company and while replying to an RFE, once sent all my tax returns as well which shows my buisness income in it.

You can even own 100% share in your business, but you need to employ someone else to run the business.

kiran_pathuri, can you please elaborate on the structure of your company. I am myself interested in starting a business and there seems to be a lot of confusing information on the internet about it. From what I have read, one thing is clear that at least one of the partners needs to be a GC holder/citizen. Is that true? It seems that without that you can not even register a company.

imh1b
07-24-2013, 12:05 PM
kiran_pathuri, can you please elaborate on the structure of your company. I am myself interested in starting a business and there seems to be a lot of confusing information on the internet about it. From what I have read, one thing is clear that at least one of the partners needs to be a GC holder/citizen. Is that true? It seems that without that you can not even register a company.

I read this and got a lot of info
Starting a Business - Immigration Wiki (http://immigrationvoice.org/wiki/index.php/Starting_a_Business)

krishmunn
07-24-2013, 12:27 PM
krishmunn what you are showing are typical symptoms of a person fairly new to the country and scared about the new culture, laws and system of the country. Since you are from India you are used to corruption, lawlessness, poverty and unclean surroundings. When many such people land here it is a shock for them. When they see everyone standing in line everywhere, no jumping red lights, not honking every minute, being polite to others...... they get more scared. When they start coming more to forums and see other people scaring them and running to lawyers they start worshiping them too. These people spend a lot of money for simple answers. Sometimes they get charged even for reading their email. These people know the weak spot and many are happy to spend thousands.

You belong to those. Slowly when you spend more time in the country you will understand how things work and that you do not need to be in a state of tension all the time in life and worry. You will learn to differentiate between people. You will know it is all not that complex it seemed earlier to you.

As you grow more here, you will make friends outside your Desi H1B circle. You will realize that those desi H1B friends had kept you in dark and you were living an isolated life. Move out and make friends with people who have become citizens, greencard holders and people who were brought up here. You will know more deeply about the country. You cannot learn about the country by living on the forums and talking to your other desi H1B friends in your 'curry den' as anti-immigrants name it. Move out and see the world. You will gain a lot of confidence in life and do better.



I have been in this country probably longer than you and never had to go through any body shop.

I am glad you are learning about the country . wish you had learnt about the law of your host country and how to respect it.

In spite of all your lectures, you have not been able to cite a single reference to law .

krishmunn
07-24-2013, 12:42 PM
@imh1b: BTW, hope you know ignorance of law is not an excuse to break it. You probably also know (from your "currey den" friends) that you cannot just break the law and say "Oh! sir , I did not know , here are some money for you just ignore the law".

Anyone who values his H1 , SHOULD NOT involve in illegal and unauthorized work. Even working for own business is unauthorized work. People sometimes keep a shield of a GC holder/Citizen to hide the unauthorized work. How legal/ethical that is ... I would not comment , but directly working for ones own business (or any other business) is a violation of H1 law.

imh1b
07-24-2013, 12:43 PM
I have been in this country probably longer than you and never had to go through any body shop.

I am glad you are learning about the country . wish you had learnt about the law of your host country and how to respect it.

In spite of all your lectures, you have not been able to cite a single reference to law .

It does not really matter how long you have been here if you have not opened up your horizon and made friends outside of your desi junta. This is actually the problem with you 'curry den' people. Narrow minded thinking and unwilling to open your horizon. If someone tells you something, you think it is a lecture. Unwilling to learn. This is why antis call your kind 'slumdogs'. (It is a sick word to use and I oppose it.) It is the same attitude these desis show at workplace and degrade the image of India. Keep enjoying your pani poori parties with other desis. Will not 'lecture' you now. You will learn one day on your own if you are fortunate.

smallville1
07-24-2013, 12:48 PM
Guys, thanks for the replies.

Just to make it more clear, the website is on my name,hosted on servers in US ( i think that doesn't matter). Only thing is the registered address is my own. there is no subsctiption model as such and hence all server costs are handled by ad revenue ( but from outside US only). I am ready to pay all taxes and will contact a tax consultant.

Unfortunately ( or say fortunately), the website valuation can cross 6 digits USD out of which i have few percent share That is going to be a very big spotlight on my taxes this year and eventually during my GC interview. I was only worried about that.

krishmunn
07-24-2013, 01:21 PM
It does not really matter how long you have been here if you have not opened up your horizon and made friends outside of your desi junta. This is actually the problem with you 'curry den' people. Narrow minded thinking and unwilling to open your horizon. If someone tells you something, you think it is a lecture. Unwilling to learn. This is why antis call your kind 'slumdogs'. (It is a sick word to use and I oppose it.) It is the same attitude these desis show at workplace and degrade the image of India. Keep enjoying your pani poori parties with other desis. Will not 'lecture' you now. You will learn one day on your own if you are fortunate.

If you would have opened up your horizon instead of listeing to "curry den" friends , you would have known that advising someone to break law is not a very good thing.

krishmunn
07-24-2013, 01:27 PM
Guys, thanks for the replies.

Just to make it more clear, the website is on my name,hosted on servers in US ( i think that doesn't matter). Only thing is the registered address is my own. there is no subsctiption model as such and hence all server costs are handled by ad revenue ( but from outside US only). I am ready to pay all taxes and will contact a tax consultant.

Unfortunately ( or say fortunately), the website valuation can cross 6 digits USD out of which i have few percent share That is going to be a very big spotlight on my taxes this year and eventually during my GC interview. I was only worried about that.

You might be able to get a clean deal here.

First, you say all Ad are handled from outside US. Who put the Googl Ad sense ? Who deal with the Ad providers ? If it is someone outside US , you are fine.

Second, to be on safe side, travel out of US (to home country) and complete the deal there. You are selling when you are not on H1 status and so you have no immigration consequence. You will still need to pay the Tax though

Bottomline is, if CIS queries (and they will with such a large amount) , you should be able to prove that you did not do ANY of the work related to this website while in US.

eastindia
07-24-2013, 02:02 PM
You might be able to get a clean deal here.

First, you say all Ad are handled from outside US. Who put the Googl Ad sense ? Who deal with the Ad providers ? If it is someone outside US , you are fine.

Second, to be on safe side, travel out of US (to home country) and complete the deal there. You are selling when you are not on H1 status and so you have no immigration consequence. You will still need to pay the Tax though

Bottomline is, if CIS queries (and they will with such a large amount) , you should be able to prove that you did not do ANY of the work related to this website while in US.

It is IRS who could find out and not CIS. But I have not seen anyone writing about it after getting RFE on extra income. People purchase and sell houses. Many people rent houses and make income every month. I know one person who runs a business to sell online as a sole owner and he has also sponsored his own H1B. He is a full time businessman for his website. But he cannot sponsor his own greencard so he is looking for a sponsor before finishing 6 years. he never got any RFE from CIS. Doctors on visas do moonlighting to earn extra salary from different hospitals. How is that possible if H1B does not allow it?

krishmunn
07-24-2013, 02:15 PM
It is IRS who could find out and not CIS. But I have not seen anyone writing about it after getting RFE on extra income. People purchase and sell houses. Many people rent houses and make income every month. I know one person who runs a business to sell online as a sole owner and he has also sponsored his own H1B. He is a full time businessman for his website. But he cannot sponsor his own greencard so he is looking for a sponsor before finishing 6 years. he never got any RFE from CIS. Doctors on visas do moonlighting to earn extra salary from different hospitals. How is that possible if H1B does not allow it?

You need to submit Tax Returns during GC application . They sometime ask for Tax return during H1 Visa interview as well.

Renting is different -- it is passive income. About the person on his own H1, who filed his H1 paperwork ? If he filed himself, he did not have the authorization to do that work . Right ? Wonder if he has sponsored his own H1 what stops him from sponsorign his own GC ???

Moonlighting --- you can do many different work -- people even work in Grocery stores and Gas stations on F1 . They get paid in Cash and once in a while get into trouble --- remember TVU and the ankle bracelets ?

greyhair
07-24-2013, 02:17 PM
You can start your own business on H1B. I have started one myself and owns 30% share in it. I am a passive partner in the business and I do some voluntary work. If your share is less than 50% and you work for less than 350 hours a year, you can claim yourself as a passive partner. I have filed 2 H1B extensions after starting the company and while replying to an RFE, once sent all my tax returns as well which shows my buisness income in it.

You can even own 100% share in your business, but you need to employ someone else to run the business.

Thanks for sharing. And that someone else that you employ to run your business can be sitting in India or wherever. That person can also be your Mom/Dad. You can pay your Mom/Dad as a contractor to run the business.

eastindia
07-24-2013, 02:40 PM
You need to submit Tax Returns during GC application . They sometime ask for Tax return during H1 Visa interview as well.

Renting is different -- it is passive income. About the person on his own H1, who filed his H1 paperwork ? If he filed himself, he did not have the authorization to do that work . Right ? Wonder if he has sponsored his own H1 what stops him from sponsorign his own GC ???

Moonlighting --- you can do many different work -- people even work in Grocery stores and Gas stations on F1 . They get paid in Cash and once in a while get into trouble --- remember TVU and the ankle bracelets ?

TVU and ankle bracelets were not because of students working for cash and evading taxes. It was an unrelated visa fraud issue. What I asked was not seeing anyone getting denial for running his business on H1B. The example of the guy I gave is a legit US corp business and he used lawyers in every step and he works for himself and he sponsors himself on H1B. He is a sole owner and has renewed H1B too. No problem with IRS or USCIS.

imh1b
07-24-2013, 02:48 PM
people even work in Grocery stores and Gas stations on F1 . They get paid in Cash and once in a while get into trouble --- remember TVU and the ankle bracelets ?

Another scare tactic commonly seen on forums. Those TVU students were studying in fraud University and got caught because of that. They were not caught accepting cash for work. Get your facts right.

krishmunn
07-24-2013, 02:49 PM
TVU and ankle bracelets were not because of students working for cash and evading taxes. It was an unrelated visa fraud issue. What I asked was not seeing anyone getting denial for running his business on H1B. The example of the guy I gave is a legit US corp business and he used lawyers in every step and he works for himself and he sponsors himself on H1B. He is a sole owner and has renewed H1B too. No problem with IRS or USCIS.

TVU was a visa fraud. Do you say unauthorized working is not visa fraud ?

Interesting . This means that all Attorneys and Law are invalid. Are you sure this guy did nto have a USC/GC holder as shield ? What is preventing him from sponsoring his own GC ?

Are any of the advocates of running (and working for ) own business courageous enough to share their Name and Address (through PM if required) . Once we inform USCIS , we will know for sure if it is legit :)

krishmunn
07-24-2013, 02:52 PM
Another scare tactic commonly seen on forums. Those TVU students were studying in fraud University and got caught because of that. They were not caught accepting cash for work. Get your facts right.

So you are now saying working for Cash without authorization is legal ? Do you work like that ? I would love to send your name to CIS .

TVU students who got Ankle Bracelets were WORKING in places like 7-Eleven using a CPT . This is NOT allwoed -- aka they worked without Authorization. Get YOUR facts right. Why do you think only a handful of TVU students got ankle bracelet ?

manan111
12-09-2013, 05:31 PM
I am in health profession which require PLLC (instead of LLC)
I am on full time H1b.
I talked to my attorney,
She said I can open PLLC, I have tax EIN. She said I can work for it, and can buy stocks and pay bills with this.
Now tell me the catch, I am maintaing my H1b status with ful time job.
And the state of NY allow any resident allow to open PLLC.
I can not file my H1b as par some new law as there is no employer-employee relation in it.
Who in the world will put their leg to be a partner in complicated health industry even with 75% profit share?
I am here for big fight, I am willing to join the campaign, spend money and time for the cause to file the petition to whomever it may concern.

When does the wire cross?
If my greencard will come after lets say five years (If I am lucky) EB2,
why I can not bill medicare/medicaid from my company?

desi3933
12-10-2013, 10:43 AM
...
She said I can open PLLC, I have tax EIN. She said I can work for it, and can buy stocks and pay bills with this.
....



Anyone who is in H1B status is only permitted to work for the H1B sponsor in the position who filed the H1B petition. In other words, the employment must be consistent with the terms and conditions of the approved H1B petition. Any employment/work, that is NOT consistent H1B petition terms, is considered unauthorized and violates the terms of the H1B non-immigrant status.


_________________
Not a legal advice.


.

manan111
12-10-2013, 03:44 PM
So can you explain me whats the solution to make my PLLC legitimate? I can file 2nd part time H1b (for my own PLLC) but do I need to show someone else as the owner? Whom I should meet? LLC advocate or immigration attorney?

desi3933
12-11-2013, 09:35 AM
....
Whom I should meet? LLC advocate or immigration attorney?



You should consider getting professional advice from immigration attorney. One may have wait to for EAD card (after filing I-485) or green card before operating any business.


_________________
Not a legal advice.

ramaonline
12-11-2013, 03:25 PM
In many cases, owning and selling a website can be considered as passive income which is legally allowed for H1 and even H4 visa holders.

You need to have proper documentation proving that this was a passive activity.

ramaonline
12-11-2013, 03:28 PM
In addition, you must report all income / gain information while filing tax returns

desi3933
12-11-2013, 06:24 PM
.....
In many cases, owning and selling a website can be considered as passive income which is legally allowed for H1 and even H4 visa holders.
....



Incorrect.