Legal Question in Immigration Law in California

Start a business with an H1B immigrant?
I am a U.S. citizen and would like to start a web-based business with a friend who is here on an H1B visa. (Both she & I work full-time, for different employers) I know that she technically can not start a business on her own, but can be a ''passive investor''. Does this mean she can be in no way involved in setting the strategy of the business, or help manage it? Or does it simply mean she can not draw a salary/wage from it?
What are our options? We want to have 50-50 ownership of the business, and, naturally, of the profits, and her know-how would be an integral part of the company's success.

Asked on 10/30/07, 12:14 am

2 Answers from Attorneys

Ricardo Vidal Law Offices of Ricardo Vidal, P.A.

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Re: Start a business with an H1B immigrant?

The best option is to apply for an E-2 visa. Depending of her country of origin, she may be able to qualify for an E-2 visa. This visa is an investor visa and would allow her to remain in the US and do business here as an active business partner. However, if her intention is to stay here permanently, continuing with the H-1B visa is more advisable if her current employer is planning on sponsoring her to get permanent residence ("green card") through a Labor Certification application.

Answered on 10/30/07, 12:54 am

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