H1B Holder starting an Online Business?

[prasad_lg]

Hello,

I am working here in USA on H1B. Green card is long way to go!

I own some Online Internet Businesses when I was in India and moved to US 6 months ago. I have some Internet Business Ideas where I can sell some products Online, Affilliate with some leading service providers to sel their products through my website. I am aiming to generate around 5000USD per month from this for myself. My involvement in the day-to-day operations will be "Nothing" except establishing the website and generating the leads. All this can be done through outsourcing it to some one in US/India.

Legally, will it be a problem to generate revenue? I am not going to register any company in USA. If the cheques and paypal tranfers to my bank account are going to be an issue? I am willing to pay al the taxes for the earnings.

Please advice!

Thanks
Garry

[prasad_lg]

any reply to this post??

[da1prophet]

Not sure if there are any legal implications due to your non-citizen status, but from a practical standpoint you can get started with your business without any formal paperwork. The operative phrase here is "get started". Once you start to generate some decent revenue I'd strongly suggest that you get in touch with a CPA--who can advise you on the US tax implications of the money you make, as well as the most advantageous corporate structure to use. You might also want to consult with an attorney--maybe even one specializing in immigration law--to see if there are any issues with your non-citizen status. Since the web is a worldwide medium you could even consider setting up your formal corporate structure in your home country.

Once you start getting some money coming in your citizenship status does present a number of issues that, quite frankly, you need the input of a professional who specializes in situations similar to yours. I'd hate for me or some other poster to tell you the wrong thing and you get into some sort of trouble over it.

Though in a practical sense there's really no reason not to start getting your business going and--like Steve says--"ready, fire, aim". In your case, however, its crucial to get your tax and legal issues dealt with as soon as your business begins to become viable financially.

[tjflynn2003]

I don't think there is any prohibition on owning businesses even if you're not a citizen... You will, however, want to get a taxpayer id number and file your taxes. Who knows, if you have a regular job you may be able to write of business losses against your w-2 income.

You apply for a taxpayer id when you do your taxes. You need a birth certicifcate or some other consular documents to get the number. Check with your cpa or tax preparer.

Good luck with your business!

[sv800]

Originally Posted by prasad_lg

Hello,

I am working here in USA on H1B. Green card is long way to go!

I own some Online Internet Businesses when I was in India and moved to US 6 months ago. I have some Internet Business Ideas where I can sell some products Online, Affilliate with some leading service providers to sel their products through my website. I am aiming to generate around 5000USD per month from this for myself. My involvement in the day-to-day operations will be "Nothing" except establishing the website and generating the leads. All this can be done through outsourcing it to some one in US/India.

Legally, will it be a problem to generate revenue? I am not going to register any company in USA. If the cheques and paypal tranfers to my bank account are going to be an issue? I am willing to pay al the taxes for the earnings.

Please advice!

Thanks
Garry

I'm in same position....
That's fine...do not use the SSN in any of such transactions...even your US address...

I own a Corp entity at US, however I cannot pay myself as employee. I register all expenses...like car expenses related to the company.

If you are registered as a foreign, affiliates will slash 30% of your earnings..
From my eyes is better of have your company registered at US...go for LLC type...

Good Luck

[prasad_lg]

Thank you all for your detailed responses and advices. Appreciated.

I will post an update soon once get these things clarified from CPA, Employer & others.


Thanks Again!

Garry