Hey anyone on H1b. I can open a LLC but cant be employed in it. Anyone else in the same boat? Can anyone help me out on how to navigate it?
Disclaimer: This is a little above my pay grade (I'm not a CPA, so you'll want to verify all of this with one).
I don't believe you technically need to be "employed" by your LLC. It's one option, but not a requirement that I'm aware of.
A lot of LLC owners will just take distributions from their LLC when they want to pay themselves (i.e. - the LLC writes a check to the owner, and the owner deposits it into their bank account and they pay taxes on it along the way - then they are free to spend the money on the personal side).
Granted, once you start making a lot of money, this may not be the best structure to use long-term because you'll be exposed to a higher tax liability... but just based on what you're saying above, I wouldn't feel like you NEED to be an employee. This is one way to do it, but not the only way.
Thank you seth, Great to hear from you. I do see other people investing who are in the same boat, I will take advice from attorney and get going.
But yes you are right I can be the owner of the llc.
@retipsterseth said:
u technically need to be "employed" by your LLC. It's one option, but not a requirement that I'm aware of. A lot of LLC owners will just take distributions from their LLC when they want to pay themselves (i.e. - the LLC writes a check to the owner, and the owner deposits it into their bank account and they pay taxes on it along the way - then they are free to spend the money on the personal side).Granted, once you start making a lot of money, this may not be the best structure to use long-term because you'll be exposed to a higher tax liability... but just b