Can I form an LLC on H-1B? (Yes, but read this first)

Short version: you can own an LLC on H-1B. You cannot "actively engage" in the business's day-to-day operations without separate work authorization. Here's what that looks like in practice.

What "passive ownership" means

You can:

Own an LLC (single-member or multi-member)

Hold rental property in an LLC

Invest in someone else's LLC or C-Corp

Receive distributions and K-1s

Sign the Operating Agreement

You cannot:

Manage day-to-day operations

Work for the LLC full-time

Take a salary from the LLC

Be listed as an active employee

Common H-1B LLC structures

**Rental property LLC.** Very common. You own the LLC, the LLC owns the property, a property manager handles day-to-day.

**Passive investment LLC.** You put capital in, the LLC invests in stocks, real estate, or another business. You review results quarterly. Fine.

**"Placeholder" LLC.** You form an LLC now, plan to activate it after your green card comes through. Zero activity until then. Fine.

S-Corp is off the table

S-Corp shareholders must be US Citizens or Green Card holders. H-1B, L-1, EAD, and ITIN holders cannot be S-Corp shareholders. Form a regular LLC (default disregarded/partnership taxation) or a C-Corp instead.

When to talk to an immigration attorney

Immediately if:

The LLC will generate significant income

You want to work for the LLC in any capacity

You're considering leaving your H-1B employer

You have EAD via a pending green card and want to work for the LLC

For simple passive ownership, our CPAs can guide you. For anything active, you need an immigration attorney's letter alongside the formation.