Neelam

I am wanting to start a business in the USA and hire and American to conduct the business for about a year, before I apply for my own working Visa and transfer myself there.

I understand that to file tax returns, I need to apply for a TIN number (required for non-American residents) Americans and residents usually use the SSN. Even though I am a British Citizen, I have a a SSN stamped with the words "Only for work with DHS authorization". I know that SSN are individual and not recycled, so the one I have isn't and cannot be used by other persons.

My question is, whilst I am in the UK and my American employee is running my business, can I still use my SSN to file US tax returns? Or, because I dont have the work Visa yet, do I need to obtain a TIN?

I obtained my SSN through a J1 Visa that I held in the past.

penguinsix

Are you talking about your company's tax return, or your personal tax return? If for the company, have you considered a quick and dirty incorporation for the business, such as an LLC, and then applying for an EIN (Employer Identification Number, the "SNN" for companies). You can set up an LLC (which is a tax structure in which your company get the liability coverage of the a corporation, but the profits are 'passed through' to the members of the LLC who treat the income as personal income tax) in about a day--there are dozens of services on the Internet that will do it. Minimal paperwork involved.

Google 'LLC Incorporation' and you'll find loads of information.

Pulaski

For a sole proprietorship or sole-ownership LLC your business won't need a TIN, it can use your SSN. Using your SSN to file a tax return is the appropriate thing to do, otherwise you'll have filed tax returns under two different SSN/TIN numbers, which can only confuse matters in future (I can't see any good coming of it).

Tip: Decide which state you want to form your LLC in, then Google <"secretary of state" "[state of your choice]" and form the LLC directly youself and save yourself several hundred dollars. It only takes a few minutes, then print out the forms and mail them with a check to the SoS, and Bob's your uncle!

Bob

Use your SSN number because you can't get a tax number if you have a SSN...and it doesn't matter about the legend because you aren't working are you.

Though you sure how easy it'll be to L1 yourself over?

Neelam

Thanks y'all for the responses. I am not expecting it to be easy to L-1 myself over, but I heard that small businesses can use this visa category and isnt limited to big corporations. I think ill just use my SSN. I was worried that it would look like I am "working and living" in the USA to the IRS if i make any filing using my SSN, even though I probably wont be physically there. Does the IRS ever question peoples residency status?

Bob

all USC's have to file, even if aboard, so what do you think?

And self transfer, it ain't as easy as you think, have a search through the visa forums and you'll find out, especially small businesses, sure it isn't against the rules, but it is being abused because of it, and they are cracking down on it, especially for those in the UK.

TouristTrap

You do realize that you have to have a business in the UK that has been operational for 3 years or more if you want to go the L1A route?

It also has to have a number of employees and make a fairly good amount of dosh annually.

Neelam

Yes, this is the problem that I am facing - I get different info in regards to the L-1 Visa from different sources. It is actually one of the last three years BEFORE applying for the Visa that a business has to be operational for. I have also heard that there is no set investment amount that you have to make and you dont have to have a set amount of employees. What does your source tell you about how many UK employees you need before making the application? And how much annual turnover does that business require to qualify, according to your source? I would really appreciate that info...and also if you could tell me what your source is, so i can chek it out myself!! Thank you!

Neelam

Yes, it seems like e British get the brunt of things!

TouristTrap

I don't have a source as we came over on a similar visa, but in the halcyon days before 911 when it was much easier.

Why not post in the immigration forum? There will be folk there who have done it recently who will be able to help you along the way much better than I can

Neelam

Good idea! Ill do that...

dakota44

An LLC is definitely easy to establish. I did mine in Florida over the net. Electronic filing and had the documents in my email the next day. Cost me $160 for the whole thing including a certified copy of the LLC. But I agree with a few others that you might be taking a route not well advised. Nothing is more frustrating than having the IRS get curious.

penguinsix

I was actually more concerned the IRS would get curious about a company filed under his SSN than they would if the company was filed under an LLC's EIN.

In addition, we haven't even touched on the legal liability issues of going at it as a sole practicioner vs. LLC. There an LLC wins hands down. Say your employee goes out and drives over a bunch of school kids waiting for a bus. Guess who is going to be sued until there is no tomorrow?--YOU. If there is an LLC shell there, then the LLC is sued (and you can keep your house and car, etc).

dakota44

Absolutely the LLC is a beautiful thing. Liability is limited to the assets of the LLC. So it's a good idea to limit the assets as much as possible.