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

Asked over 1 year ago - 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. Alexander Joseph Segal

    Contributor Level 20

    5

    Lawyers agree

    1

    Answered . 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)... more
  2. J Charles Ferrari

    Contributor Level 20

    3

    Lawyers agree

    Answered . Work? No
    Received dividends? Yes.

    J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not... more
  3. Phillip Monroe Smith

    Contributor Level 18

    2

    Lawyers agree

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    Answered . 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... more
  4. Dana Howard Shultz

    Contributor Level 20

    1

    Lawyer agrees

    1

    Answered . 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.
  5. J. Thomas Smith Ph.D.

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . 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.... more

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