Hi everone, I have been here in US for 14 months and I am an ESL (English Second Language) student for now. Before i get my graduate classes i have to get some English classes to improve it till a certain level. Anyway...
Approximately 1 month ago i got a job in school campus (my school is a college not a private language school). Finally last week i got my SSN too.
I am an F1 visa holder and my question is can i establish an online start up business ? I know that H1B holder people can establish but they cannot work at their own company. If i establish and own a web based company but not to work for it would it work for me? Could I also have my company like H1B holders could? Because both H1B and F1 holders are able to work (F1 holders in campus), so their situation seem same to me. I can also apply for TAX number. If i am not mistaken it is not that hard to get one unlike to have SSN.
If you help me or give me some direction i would very appreciated.
Gotham: Yes, as an F-1 student, you can own a company in the United States...however, unless you have employment authorization that is INDEPENDENT of your F-1 status, you would not be allowed to work for such a company.
You state that you have obtained a Social Security number based upon your authorization to work on campus...so, you are not eligible for an Individual Tax Identification Number.
If you do establish a company here in the United States, you should be very careful...you are not allowed to work at such a company, and doing so will invalidate your F-1 student status.
Originally posted by Gotham: Hi everone, I have been here in US for 14 months and I am an ESL (English Second Language) student for now. Before i get my graduate classes i have to get some English classes to improve it till a certain level. Anyway...
Approximately 1 month ago i got a job in school campus (my school is a college not a private language school). Finally last week i got my SSN too.
I am an F1 visa holder and my question is can i establish an online start up business ? I know that H1B holder people can establish but they cannot work at their own company. If i establish and own a web based company but not to work for it would it work for me? Could I also have my company like H1B holders could? Because both H1B and F1 holders are able to work (F1 holders in campus), so their situation seem same to me. I can also apply for TAX number. If i am not mistaken it is not that hard to get one unlike to have SSN.
If you help me or give me some direction i would very appreciated.
Thanks for your time in advance Gotham
Hi Gotham, Yes, you can own a company. However, it may be classified either as a domestic business entity or a foreign business entity depending on the regulations of the state how it defines resident of the state. A resident of the state is defined on tax status rather than legal immigration status in most states. This will determine how the company will be taxed: either domestic or foreign.
Contrary to SundevilUSA misinterpretation of the immigration code, you do not necessarily need an employment authorization to work for your own company. The reason will be how the company is classified as a business entity. The business entities include limited liability company, sole proprietorship, partnership, corporation, or S-corp (only for domestic association or corporation). The type of business entity will either be taxed as a domestic or foreign. If taxed as a foreign business entity, then no EAD is required. If taxed as a domestic business entity, more than likely, no EAD will be required either.
If you need any more questions, PM me.
"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre
Gotham, google the net for "free initial consultation immigration attorney" (you sure know how to use internet browser or you wouldn't be here posting a question). Many of those immigration attorneys have toll-free numbers. Lift that phone, dial the number, ask your question and get a legal advise.
But if you want to be misled then keep relying on the advise given on this forum.
Originally posted by OldE: Gotham, google the net for "free initial consultation immigration attorney" (you sure know how to use internet browser or you wouldn't be here posting a question). Many of those immigration attorneys have toll-free numbers. Lift that phone, dial the number, ask your question and get a legal advise.
But if you want to be misled then keep relying on the advise given on this forum.
Good luck
Old, this is not an immigration matter, but a tax matter. Immigration status just complicates the tax question.
"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre
For the tax matter he would need to consult an accountant.
Here is the quote from OP: ..my question is can i establish an online start up business ? I know that H1B holder people can establish but they cannot work at their own company. If i establish and own a web based company but not to work for it would it work for me?
Correct answer TTBOMN would be:
1) Yes, he can establish any business. Anyone can establish a business in US regardless of ones' geographical or immigration status.
2)Yes, it could work if he didn't perform at his established business, only collecting dividents like any stockholder.
Since I am neither immigration attorney (nor accountant) I suggested that he consult one.
Whatever he chose to do is his business, of course.
SunDevilUSA and Hudson thank you so much for both of yours valuable time. I got your replies i should say that being able to establish a company made me happyAnd yes i have some more questions to you helpful people. Now i dont have enough time to form my questions but later (i hope tonight) i will post my questions either publicly here on the forum or directly to your PM boxes. I hope you again share your experience /knowledge with me. Thanks a million in advance.
I am also open to others point of views' which will NOT be a waste of time like somebody has already done. I am not knowledgeable on US law. On the top of it i do not print money at home so that i can go to a very knowledgeable attorney to ask my questions. Forums have been my best places to ask for and share knowledge i have. I am a student here and trying to survive so i guess this explains my situation.
Originally posted by OldE: For the tax matter he would need to consult an accountant.
Here is the quote from OP: ..my question is can i establish an online start up business ? I know that H1B holder people can establish but they cannot work at their own company. If i establish and own a web based company but not to work for it would it work for me?
Correct answer TTBOMN would be:
1) Yes, he can establish any business. Anyone can establish a business in US regardless of ones' geographical or immigration status.
2)Yes, it could work if he didn't perform at his established business, only collecting dividents like any stockholder.
Since I am neither immigration attorney (nor accountant) I suggested that he consult one.
Whatever he chose to do is his business, of course.
Thank you for your time and sharing of your view . Although your are neither immigration an attorney nor an accountant, I should say that, your second message is much more constructive than first one. Thank you again.
Hi all again. After a tiring weekend i am here and have some more questions to ask as i have said before I hope this time also you do not avoid to share your knowledge/experience with me and who interested in the same situation.
I would like to begin wiht SunDevilUSA in your this sentence you say that;
quote:
Originally posted by SunDevilUSA: Gotham: You state that you have obtained a Social Security number based upon your authorization to work on campus...so, you are not eligible for an Individual Tax Identification Number.
Really? I am not sure about it because one of my F-1 holder friends had applied before and got his TAX number and afterwards he got the same job with me in school and now he applied for SSN (he supposed to get his card in these days but i dont know if he had) What is the connection between having SSN and not to be eligible for TAX number? Can't u have both of them at the same time? Isnt it an obligatory to have your own TAX number when you establish a business? How do you pay your tax otherwise? Last question is how much would it cost(approx.) to establish a company here in USA? Thank you in advance.
No contribution to my questions' subject. DO NOT WASTE ANYBODIES TIME AND DO NOT POLLUTE ANYBODIES SCREEN ! ! ! ! ! ! Next knowledgeable person please.
We dont need YOUR pictures here. Keep them for your self. Play in your kindergarden and do not reply anything in this folder. Nobody needs pollusion or wasting time here in this folder. By the way you already have been reported!
I am sorry but here we have a kindergarden kid who keeps posting his/her pictures trying to distrack the folder. Anyway...
I appricate your previous answer. Well i do have some more questions. I hope u have time to reply them all.
1-Contrary to SundevilUSA misinterpretation of the immigration code, you do not necessarily need an employment authorization to work for your own company. So, in regarding to my start up will be a web based tiny online business, can we say that i dont need to anybody to do some necessary work by myself? Doing some aggrements with second and third parties with my own name will be OK without a problem?
2-I am from New York, do you have any idea according to NY state law will i be foreign or domestic business owner?
3-For my type of company which of these The business entities include limited liability company, sole proprietorship, partnership, corporation, or S-corp (only for domestic association or corporation). would be most proper by considering getting bigger in time?
4-Either my business taxed as foreign or domestic i will not need EAD( working permit i guess) right?
5-What should be done to establish a start up and how much would it cost to me to establish a company.
Thank you very much in advance for your answers, directions and time.
I have done what should i need to do and report two times this immature person. From now on it is not my problem at all. Now it is this forum's admins responsibility and their turn to act. They should show that how much this forum is repectful. We all will see. I believe quite a lot by the way.
Originally posted by Gotham: Is there anybody (who is serious) who can share his/her experience or knowledge about my questions?
Thank you for your time in advance.
Gotham
Gotham, Please be patient. I will answer your questions in a day or two. I am doing some research for you.
"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." John Adams on Defense of the boston Massacre
Originally posted by Hudson: Gotham, Please be patient. I will answer your questions in a day or two. I am doing some research for you.
Hi Hudson,
Thank you for your sensitivity. I've been waiting for your reply there is no problem with that. I can wait till you form your reply/finish your research. I appreciate from now.
In addition to that i asked if anyone else also would like to share their ideas/experiences which may lead new solutions. Do not get me wrongit was not because i was not patient.
1-Contrary to SundevilUSA misinterpretation of the immigration code, you do not necessarily need an employment authorization to work for your own company. So, in regarding to my start up will be a web based tiny online business, can we say that i dont need to anybody to do some necessary work by myself? Doing some aggrements with second and third parties with my own name will be OK without a problem?
The Employment Authorization Document is for dependent personal services only, not independent personal services, ie independent contractor for instance. Generally, if you start your own company and are considered an independent contractor, but this will also depend on how you set up your company. If you hire someone as a dependent personal services, ie employee, then an EAD would be required if you hired an alien. However, with e-commerce such as a web based company, there are very complex tax regulations that would determine how the company would be taxed if you set up as a corporation.
quote:
2-I am from New York, do you have any idea according to NY state law will i be foreign or domestic business owner?
You are considered a non resident of the state, which may have an impact on how you set up your company. You will need to call 518.292.5220 or visit their site. I do not live in New York.
quote:
3-For my type of company which of these The business entities include limited liability company, sole proprietorship, partnership, corporation, or S-corp (only for domestic association or corporation). would be most proper by considering getting bigger in time?
This will really depend on how you want the company to be taxed and how easy it would be to obtain capital. First, I would write a business plan and determine what your goals are in the short term, lets say 2 years, mid term, 2-5 years, and long term, more than 5 years. This would need to include whether you intend to stay in the U.S. go back home to your home country, or move to a third country. This will help you on how to obtain future capital and how the comapny will be taxed. A paopular method for most individuals is to set up a LLC. For IRS purposes, LLC is not officially recognized but the tax authority has default rules. If you are s single member LLC, then the default rule is the company will be taxed as a sole proprietorship. An advantage to an LLC is that your liabilities would generally be limited to only what the company owns whereas a pure sole proprietorship will have both personal and business assets intermingled. A multiple member LLC, that is two or more members, the LLC is taxed as a partnership under the default rules. But again, the members will have their liabilities limited to what the company owns. In either a single or multiple member, the company has a choice, an election, to be treated either as a corporation or S-Corporation (if certain requirements are met). If you establish a corporation under the article of incorporation within NY state, this will generally be considered a domestic corporation. You can still elect to become a S-Corporation if certain requirements are met.
For tax purpoeses, a single member LLC or a sole propiortorship will be taxed on the 1040 series and you may be subject to self employment tax, unless you are a non resident alien for tax purposes. Generally, aliens who are F visa holders are generally non resident aliens for a max period of 5 years. this is the simpliest tax situation. For partnerships or multiple member LLC, a Form 1065 will be filed and the net income or loss is passed to each of the partners. Generally partnership income
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And yes i have some more questions to you helpful people. Now i dont have enough time to form my questions but later (i hope tonight) i will post my questions either publicly here on the forum or directly to your PM boxes. I hope you again share your experience /knowledge with me. Thanks a million in advance.
