Johnmail

Folks:

I am an H1B holder and recently I got an IT job offer with the following conditions:

* A high salary will be paid to you as a Consultant
* No benefits (Insurance, medical, dental, etc) will be involved
* No deductions/withholdings will be done, you have to do all the paperwork
concerning your taxes

These are the questions I have in mind:

* How should I deal with the issue of taxes ?
* Can I setup my own Limited Liability Company (LLC) as an H1B holder? Someone
suggested that I must first get permission from the INS to staert the LLC
* If I have an LLC, would I actually be working for that LLC rather than the
prospective employer ?

Thanks, John.

Ingo Pakleppa

On Tue, 23 Apr 2002 08:12:44 GMT, "JohnMail" <[email protected]> wrote:

    >Folks:
    >
    >I am an H1B holder and recently I got an IT job offer with the following conditions:
    >
    >* A high salary will be paid to you as a Consultant
    >* No benefits (Insurance, medical, dental, etc) will be involved
    >* No deductions/withholdings will be done, you have to do all the paperwork
    > concerning your taxes
    >
    >These are the questions I have in mind:
    >
    >* How should I deal with the issue of taxes ?

This type of job is known as 1099, because the employer will report your income on
form 1099 instead of form W-2. You will need to estimate the income tax that you will
be paying over the year, and then make estimated tax payments. You may want to get a
program such as TurboTax to do the hard work for you.

    >* Can I setup my own Limited Liability Company (LLC) as an H1B holder?

Yes, you can do whatever you want. In order to actually work, you have to do one of
two things: either, you have to get the employer to sponsor an H-1B for you, or you
have to have the LLC sponsor you for an H-1B. Since the LLC in effect is your
company, INS will scrutinize this more than most H-1B cases. Also, the LLC must be
able to pay you the prevailing wage no matter what - even if the final employer
terminates you.

And finally, the LLC could sponsor you for an H-1B, but cannot sponsor you for a
Green Card.

If you want the LLC to sponsor you, I would recommend an experienced attorney.

    > Someone suggested that I must first get permission from the INS to staert
    > the LLC

Not to start it, but to work for it. You could start an LLC and then hire a manager
to run it.

    >* If I have an LLC, would I actually be working for that LLC rather than the
    > prospective employer ?

It depends on which body of law you are looking at, and what the situation really is.
In terms of labor law, yes. In terms of immigration law, the prospective employer may
still be considered the actual employer. You have some control over that.

Ingo

I am not a lawyer and this is not legal advice. For reliable advice, please consult
with a professional immigration attorney.

For further information, check the following frequently-requested links.

For many questions, you may find answers at
http://travel.state.gov/visa_services.html (Department of State)

or http://ins.usdoj.gov (INS).

For consular policies and visa reciprocity fees, find your consulate in
http://travel.state.gov/links.html

For visa denial and suggestions what to do about them, see
http://travel.state.gov/visadenials.html

For DOL Online Labor Certification: http://workforcesecurity.doleta.gov/

For information on affidavit of support for marriage to US citizens (I-864), go to
http://travel.state.gov/i864gen.html and http://travel.state.gov/checklist.html

For information on entering the US as a K-1: http://www.k1poelist.com/

For poverty levels, see http://aspe.os.dhhs.gov/poverty/00poverty.htm

For information on H/L/O/P visa extensions at Dept. of State in St. Louis, MO, see
http://travel.state.gov/revals.html

For non-official information, check:

(When using these sites, and any Web sites, please watch out for privacy, as I do not
know all site operators.)

http://www.visalaw.com http://www.shusterman.com http://www.immigration.com
http://members.aol.com/MDUdall http://www.murthy.com/ http://www.richw.org/dualcit/
(dual citizenship FAQ) http://www.ilw.com http://www.srs-usvisa.com
http://www.getusavisa.com http://greencard-lottery.virtualave.net/
http://www.jcvisa.com (H-1B) http://www.h1bresources.com (marriage and fiancee)
http://www.kamya.com/misc/ (marriage and fiancee)
http://www.mindspring.com/~docsteen/...o/visainfo.htm http://www.workpermit.com

This is not an endorsement of any of these Web sites. I am not affiliated with any of
the Web site owners and do not receive nor accept payment in return for listing them,
and typically don't even know them.

(if believe you have a good immigration-related Web site and want your Web site
listed here, please e-mail me).