Legal Question in Business Law in Massachusetts

LLC creation by a foreign national in the US

I am a Foreign National in the US on a H4 visa and I want to create a Limited Liability Company along with other individuals who are also foreign nationals on non-work visas. When I create the LLC, I plan on hiring people to work for the LLC.

From my understanding, I know that since I do not have a Green Card or H1B visa I will not be allowed to work for my company and receive compensation for any services I offer, and can only receive pass-through profits from the LLC.

I would like to know whether I could legally perform behind the scenes activities and management duties for the LLC such as payroll functions, signing contracts for work, etc. just as long as I do not receive a salary or compensation for the services I render.

I would appreciate any clarification you can provide me on this matter.


Asked on 2/20/04, 12:47 pm

1 Answer from Attorneys

Re: LLC creation by a foreign national in the US

The US does not restrict who can and can not be an owner or "officer" of an LLC. The issue has more to do with the work you are doing here and if that is a violation of your visa. If you are merely acting in the capacity that any reasonable investor of a closely held business is acting, then no you would not be violating your visa. If this is ancilary work permitted under a student visa, then no you have no problem. However, if this is a full time job of management and a primary use of your time -- what constitutes a full time job then you need to get proper authorization.

That authorization may not be as difficult as you think. However, you need to contact an immigration attorney for direction on your application.

However, if this is viewed as a clever way by the authorities to try and circumvent the US visa and employment rules, they will act accordingly. You should contact an immigration attorney for direct guidance and provide him with complete details of what you will be doing.

As an owner, you can sign contracts but if you are actively engaged in the management of the business on a day to day basis--you probably have a problem.

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Answered on 2/23/04, 9:19 am


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