Hiring off shore contractors, US based start up


3

Since I am on H1 visa and I am not supposed to work/ contribute directly to my own company, what would be the best way to manage company proceedings. If I plan to hire a manager, who would get business for me and coordinate projects with developers(in India only) would that be ok and what paper work is required to hire some one for my company.

  • Can I hire off shore workers and pay them. Since most of my business will come from internet itself can I hire a off shore manager to manage business?
  • If I hire commission based sales rep(in USA), what forms and paper work is required to hire them.
  • Lastly, at the end of month after paying salaries and every other expense the amount left in company's account can I use it for my person expenses?

I hope I was able to explain myself and would appreciate any help.
Thanks

Getting Started USA

asked Jul 6 '13 at 04:22
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User596374
116 points

1 Answer


2

I suggest you talk to an immigration attorney, because it all comes down to what you can or cannot do as H1 person.

Can I hire off shore workers and pay them. Since most of my business
will come from internet itself can I hire a off shore manager to
manage business?

Legally? No. Because that would be working. You can only be a silent partner, you cannot hire anyone.

If I hire commission based sales rep(in USA), what forms and paper
work is required to hire them?

Depends on the State, each state with its laws.

Lastly, at the end of month after paying salaries and every other
expense the amount left in company's account can I use it for my
person expenses?

Of course not. Unless you're a sole proprietor (which you cannot be on H1), your company is a separate legal entity, and using the company's account for your personal expenses will basically "pierce the corporate veil" to say the least, will probably make potential partners/investors run away, or lead to embezzlement charges, which is a criminal offense.

The company may decide to distribute dividends, at its own discretion, and only then you can use the money for your personal expenses (after paying taxes of course).

answered Jul 6 '13 at 23:26
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Littleadv
5,090 points
  • I am writing this comment here so that it can help others too, I consulted a CA based immigration attorney and told him my situation, for hiring off shore workers he said I can hire any one as I am the CEO of the company but I can not participate in day to day working. For hiring people off shore and in US I need a contract with company letter head and thats it (my plan is to hire on commission basis, it might differ for full time employees). Lastly, yes I can not use the money for my personal use. – User596374 8 years ago
  • @user596374 CEO is an employee of the company. Any employee, including CEO, must pass the I-9 verification. Now go get the I-9 and see how you can do it. I hope you didn't pay that attorney. – Littleadv 8 years ago

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