H1B visa holder - creates LLC.

[sohanpatro]

Hi Team!

I am an H1B Visa holder in Washington state.

If I create an LLC, will there be any implication on Tax?

Anything else I should know for the future before I go ahead and create an LLC?

Thanks!

[DaveF1006 · Accepted solution]

Yes, you may start an LLC as a H1B visa holder but you should be aware that if you are on H-1B, the scope of you having control over your company becomes limited. For an example, you can be a passive investor of the LLC but you won't be able to manage the day to day operations, As a result,  you have limited control over the operations of your company, even if you own it. This would create an additional expense in hiring a management team.

There is no immediate impact on your taxes but LLCs can benefit from a wide range of tax deductions for business expenses. Common deductions include costs related to operating the business, such as rent, utilities, employee salaries, and marketing expenses. Taking advantage of these deductions can significantly lower the taxable business income.

To form a Washington LLC, you'll need to file a Certificate of Formation with the state. The basic fee for this certificate is $180 when submitted through the mail or in person, or $200 when filed online. You can file here.

You may check with the Dept of Immigration to see if additional restrictions apply.

[Skyline]

Hello, I have a client who is an owner with an H1B visa and hired a manager as the governor. When I opened B&O and L&I accounts, they asked me if the governor owned the company and the percentage; I told them the governor is a manager and does not own any % of the company. Then, they wanted the owner's information to be updated in their systems. Should I give it to both of the departments? Also, they told me if the owner's info was not posted to the Secretary of State, then the owner's information needs to be updated there.  What should I do? 

[KarenL]

@Skyline 
This sounds more like a legal (or company authority) question and not tax advice.  Unfortunately, it is out-of-scope for this forum.