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I'm on F-1 visa. Somebody told me I can start a business but only as a passive investor. How do you start a business as a pas..?

Milwaukee, WI |

I'm on F-1 visa. Somebody told me I can start a business but only as a passive investor. How do you start a business as a passive investor? I need some advise on starting my own business as a passive investor. How do you do it?

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Attorney answers 4

Posted

It is risky. You can lose your capital! Unless you are the son of an Arab oil magnate or of a Russian minigarch you should be careful,before entrusting your money to somebody else and have him run (of even own a great part of the business the "active" partner will own and operate on his own, without you,'the "passive" investor having much say so on the expenditure of your money or the running of the business.

Talk to business / transactional lawyer before embarking on such an adventure!

Behar Intl. Counsel 619.234.5962 Kindly be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.

Asker

Posted

I thought America was the freest country in the world. I'm disappointed.

Giacomo Jacques Behar

Giacomo Jacques Behar

Posted

It is! You are absolutely free to spend, waste and give money to whoever you please.. Hey, maybe your"active" partner is the smartest and most honest person in the world, and you don't need any contractual protection or other safeguards. I coul very well be paranoic and trying to give advice without being asked.. Go ahead, do want you want to do.

Asker

Posted

I understand that you cannot work while you are on F-1 visa because you are "stealing" a job from an American. But I don't understand why you cannot work for your own company if you are a F-1 student. Yeah, sounds very much free to me. Thank you very much anyway.

Giacomo Jacques Behar

Giacomo Jacques Behar

Posted

For the simple reason that "working" (even for yourself) while on an F-1 student category is considered an activity which is "incompatible" with your status and, as such, a violation of the terms of your visa, which could get you placed in removal proceedings. I agree with you that it is silly, unjust, and anything else you might say or think, but, it is what it is and I don't make the laws myself.

Giacomo Jacques Behar

Giacomo Jacques Behar

Posted

No "developed" , industrial country in the world allows foreign nationals under student visas in the country engage in "work", for themselves or someone else and the US is no exception to that. Just think of your own country? Now, if you want to go into business or investment in the US, perhaps you could apply for an E-2 Treaty Investor status and legally remain and "work" in this country.

Asker

Posted

I understand. As for the E-2 visa, if I buy $1 million dollars worth of products ANNUALLY and export them to my home country (like an exporting business), do you think I can qualify for E-2? It looks like my country has a treaty investor with the US but not treaty trader.

Giacomo Jacques Behar

Giacomo Jacques Behar

Posted

What is your nationality? You need to seek a consultation with an immigration lawyer in your area to sort all this out. Period.

Posted

I agree with my colleague. You can start your own company, but It is not recommended. A passive investor is one who does not participate in the day-to-day decisions of running a company. You need to hire someone to run your company.

This answer is of a general nature and should not be relied upon as final, nor is it intended as legal advice. Consult with a qualified attorney before making any legal decisions. Gen Kimura, (832) 247-6932.

Posted

I, too, agree.

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.

Posted

Another question is why you would want to do that, when you can passively invest in existing businesses.

The above is intended only as general information, and does not constitute legal advice. You must speak with an attorney to discuss your individual case.