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Can "passive investor" of an LLC work as volunteer with this LLC?

San Diego, CA |

An H1B visa holder register an LLC which only has him as the only personnel. So he can not work for salary in this LLC, but only as a passive investor. Can he work as volunteer with this LLC and receive dividends if there is any income from the entity?

Attorney Answers 5


  1. This is an immigratin question, and I have changed it. The simple answer to your question is no. Your are attempting to violate the immigration laws by paying yourself a "dividend" and calling yourself a "volunteer." You could lose your immigration by doing this.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    www.worlclasslawyers.com

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is philsmithjr@worldclasslawyers.com.


  2. Work? No
    Received dividends? Yes.

    J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not constitute legal advice, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship. Answers on Avvo can only be general ones, as specific answers would require knowledge of all the facts. As such, they may or may not apply to the question.


  3. Only if such work does not interfere with the H1B duty and of a kind that is usually performed by volunteers.

    NYC EXPERIENCED IMMIGRATION ATTORNEYS www.myattorneyusa.com; email: info@myattorneyusa.com; Phone: (866) 456-­8654; Fax: 212-964-0440; Cell: 212-202-0325. The information contained in this answer is provided for informational purposes only, and should not be construed as legal advice on any subject matter.


  4. I agree with Attorney Segal.

    Law Offices of J Thomas Smith J.D., Ph.D 11500 Northwest Freeway, Suite 280 Houston, TX 77092 713-LAWYER-2 www.MyImmigrationLawyer.info NOTE: Responses are for the education of the community at large and is not intended to be "legal advice." No attorney-client relationship is established by responses or comments.


  5. I agree with Attorneys Ferrari and Smith.

    Aside from any straightforward immigration / work visa problem, there is a problem in that CA does not permit unpaid work in a situation such as you have described, so the "volunteer" would have to be paid, which would undermine the basis for your charade.

    This information does not constitute legal advice and does not establish an attorney-client relationship.

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