3 ms·

I'm currently holding an H1B visa and my friend started a business where he currently owns 100% of the company. Before moving forward with any additional share

I'm currently holding an H1B visa and my friend started a business where he currently owns 100% of the company. Before moving forward with any additional share issuances (to myself and potential investors), we wanted to fully understand my eligibility and any complications that could arise as a result. Given my current visa status, am I permitted to receive shares without any legal implications? I'm also really close to getting the EAD, should I wait for it? And once I have it, how can I proceed to issue the shares from a legal perspective? Can I only issue the shares once I have the green card without any legal implication?

proberts 9y ago
There is no issue with your receiving shares as long as you are not providing services to this entity.
- lucascarvalho 9y ago
  If all I'm doing for this business is coding and I have less than 50% of the share, I'm not an employee and I'm not getting paid. Is this considered like providing services?
  - proberts 9y ago
    Yes.
    - lucascarvalho 9y ago
      How about when I get the EAD? Can I issue shares and provide services?
      - proberts 9y ago
        As a general rule, yes.
    - cletus 9y ago
      Wait, I'm confused... not the OP but if this guy is coding for this business (the one he doesn't have an H1B for), I thought it didn't matter if he was getting paid or not. This is "productive work" right? As in, it has value so is problematic. Or do I misunderstand the rules?
      - forkerenok 9y ago
        In the spirit of the law/regulation that's even worse: as an immigrant without permit to do that, he'd provide unpaid labor undermining ability of other people compete for this job. Edit: of course IANAL. And in other words, as I understand it, work permits limit strictly to what extent can you affect competition in the country (H1b - only one FT job position). And by filling in vacuum of required labour somewhere else you definitely affect it negatively.

proberts 9y ago

There is no issue with your receiving shares as long as you are not providing services to this entity.

lucascarvalho 9y ago
If all I'm doing for this business is coding and I have less than 50% of the share, I'm not an employee and I'm not getting paid. Is this considered like providing services?
- proberts 9y ago
  Yes.
  - lucascarvalho 9y ago
    How about when I get the EAD? Can I issue shares and provide services?
    - proberts 9y ago
      As a general rule, yes.
  - cletus 9y ago
    Wait, I'm confused... not the OP but if this guy is coding for this business (the one he doesn't have an H1B for), I thought it didn't matter if he was getting paid or not. This is "productive work" right? As in, it has value so is problematic. Or do I misunderstand the rules?
    - forkerenok 9y ago
      In the spirit of the law/regulation that's even worse: as an immigrant without permit to do that, he'd provide unpaid labor undermining ability of other people compete for this job. Edit: of course IANAL. And in other words, as I understand it, work permits limit strictly to what extent can you affect competition in the country (H1b - only one FT job position). And by filling in vacuum of required labour somewhere else you definitely affect it negatively.