Question:
I have a query which is a mix of both business and immigration related.
I intend to setup a LLC. I am on a H1B visa. I intend to use that LLC for corp to corp assignments.
For e.g. Deloitte -> My LLC -> employer (who holds my H1B).
or
Delloitte -> My LLC (for short assignments which can be done working from home)
Under this scenario, I will always have control over the payments. My employer would never know that the LLC thru which he is doing business, is owned my me. Also I have no contract signed (between me and my employer) which prevents me from doing so. Also I would be on W2 of the employer who would hold my visa.
I would take the money from my LLC and show as profits.
Is such a model legal according to immigration rules?
Answers:
I do not believe that you can own an LLC and I know you cannot own an S-CORP (the State Corporation Commission will automatically dissolve an S-CORP if any percentage of it comes under foreign ownership but I'm not 100% and an LLC is basically intended to be a "simple S-CORP" so it generally falls under most of the same rules).
Also, because both of these entities are pass-through companies, they're hardly "blind" to the employer.
You can't be on a W2 and pass those payments to an LLC. That's money laundering. I don't believe as you can own a corporation/LLC unless you have a green card anyway.
Your whole scenario is irrelevant. Of course Deloitte would know that you own the LLC. If they did not know they would not do business with it. You would not be able to escape taxes either. Trying to do what you suggest would be dishonest, and it might be illegal. It may also not be possible, but I don't know the law for holders of an H1B visa.
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