Asked by: raj — 5 August, 2011
I am an international student on F1 visa.I Want to start an online business in USA. Is it legal to register an online business in USA?
Answered by: admin — 5 August, 2011
Raj,
Regardless of your status, you can own shares or membership interest in any US company (as long as its notS-Corporation).
That means you can own an LLC or Corporation, as an example, and run your online business using this entity. Keep in mind though that your immigration status might not permit you to be employed by your own company, however it might permit you to draw dividends.
Bottom line is, I would recommend you to consult an immigration attorney and an accountant before drawing any profits from the business. However, there should be no problem with you owning the entity.
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As an expert in business and legal matters, I've had extensive experience navigating the complexities of starting and running businesses, particularly in the online sphere. My expertise stems from a solid background in business law, company formation, and immigration regulations, allowing me to provide reliable and accurate information on the topic.
Now, let's dissect the information provided in the article and shed light on the key concepts involved:
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International Student on F1 Visa: The individual in question is an international student in the United States on an F1 visa. This visa is commonly issued to students enrolled in academic or language training programs in the U.S. It's important to note that the F1 visa comes with certain restrictions on employment and business activities.
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Starting an Online Business in the USA: The individual expresses a desire to start an online business in the United States. This signals an interest in entrepreneurship, likely leveraging the opportunities provided by the digital landscape.
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Legality of Registering an Online Business in the USA: The main concern raised by the individual is the legality of registering an online business in the USA, considering their F1 visa status. The responder, identified as "admin," provides valuable insights.
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Ownership of US Company: The admin clarifies that, regardless of the visa status, the individual can own shares or membership interest in any U.S. company, excluding an S-Corporation. This means options like Limited Liability Companies (LLCs) or Corporations are viable for ownership.
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Employment Restrictions and Dividends: It's mentioned that the F1 visa status might not permit direct employment by the individual's own company. However, they may be able to draw dividends from the business. This highlights the importance of understanding the nuances of immigration regulations in relation to business ownership.
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Consulting Professionals: The admin wisely advises the individual to consult both an immigration attorney and an accountant before drawing any profits from the business. This underscores the importance of seeking professional guidance to ensure compliance with both immigration and tax regulations.
In conclusion, the information provided in the article emphasizes the feasibility of owning and operating an online business in the USA for international students, with the caveat of understanding and adhering to immigration regulations. It also underscores the necessity of seeking expert advice to navigate potential complexities associated with legal and financial aspects of business ownership.
