Discussion:Is an H1 Visa Holder considered a "foreign citizen"?
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Discussion Forum Index --> Tax Questions --> Is an H1 Visa Holder considered a "foreign citizen"?
| 16 June 2007 | |
| I guess the question was a tad strange .... would like to confirm that an H1-B Visa Holder is a resident alien for tax purposes. I think that is true. Can an H-1 B Visa holder have an investment in a start up C corporation as a Founder? He is not actively involved in the business. Thanks. | |
| 16 June 2007 | |
| An H1-B visa holder is a resident alien if he meets the substantial presence test (183 day test). | |
| 16 June 2007 | |
| Thanks. Do you know if they can be a shareholder in a C Corporation if they are not actively involved? | |
| 16 June 2007 | |
| Sure they can be shareholder in a C corporation; they can (if they have met the presence test) be a shareholder in an S corporation as well.... | |
| 16 June 2007 | |
| Chase, not sure if you are asking this question from a tax standpoint or from the standpoint of whether the visa will allow this. | |
| 16 June 2007 | |
| Well... I am wondering and have been trying to research this on the internet. Seems like from both perspectives it would be alright because many Founders of startups hold H1B visas. I think the trick is that they can be an investor and even an employee of the C Corp but cannot be self-employed. I have not had much luck getting to an answer on any articles about this. | |
| 16 June 2007 | |
| My feeble memory seems to recall that the H-1B visa is for a specific job with a specific employer, and if the visa holder is engaged in concurrent employment, he would need to obtain permission from the USCIS.
You might want to post this question to an immigration law forum. | |
| 17 June 2007 | |
| The H1B VISA holder is working in the US for one employer; that is how he/she got their visa. Under this, he/she cannot work for any other company while here on the work visa with the current employer. They can have a passive investment role in a corporation, but not work it. They can volunteer services to a Corporation but cannot be an employee. You can look up the VISA classifications at:
h1base.com | |
| 17 June 2007 | |
| Sandy, I believe that concurrent employment with more than one employer is ok. Each employer must qualify under the H-1B rules. However, I also believe that ownership in a C corporation could be construed as “self-employment” if the shareholder is active in the corporation, and this would obviously not be allowed.
Lawyers.com has a forum on immigration law, and this issue has been addressed. See http://community.lawyers.com/chat/chatarchive.asp?channelId=18&chatId=1553 | |
| 17 June 2007 | |
| You are correct Riley but the employer would need to file for a concurrent H-1B visa application or the employee would require transfer documentation, but certainly I stand corrected...
But as for the second part, from what I am reading, any H-1B Visa holder can invest in a corporation in the US and can provide volunteer services to the corporation, but no they can't work or receive a salary until they get prior approval from INS and DOL and of course apply for an H-1B visa for the employee/shareholder. I certainly am not an attorney nor an immigration attorney and the immigration laws are very complex it seems. But thank you for the link btw :) | |
| 17 June 2007 | |
| Thank you for this link and the contributions to my question. I have a place to start now.....really appreciate it. | |
- adding search term: H-1 visa
