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Immigration Issues/LLC - Member Manager or Manager Managed (H1B)


Dear Mr.Hay - Four of us want to form an LLC, two of us are on our H1B with a different company. Without giving up our current H1B job, we (The H1B holders) would like to become passive investors in this new venture. Should we form a manager managed or a member managed. Wouldnt forming a member managed LLC automatically construe a violation of a H1B since, it means you are involved in management and thereby working?

Neither would cause a problem, although for various reasons I favor a Manager managed LLC.

"Working" in the USA means working for an employer who is PAYING you for your services. If you are not receiving a salary, then you are not working. Being a Member of a Member managed LLC does not impute this.

Good luck, and please contact me if you need help with the formation of the LLC. There are a few tricks you need to know to save you some taxes and some trouble.

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Alexander J. Hay


I am a U.S. lawyer with offices in Houston, Texas and in Belize. I can answer questions on U.S. Immigration, U.S. corporate law, and Offshore Tax and Asset Planning.
If you are on an H or L visa I am NOT GOING TO ANSWER your questions since they are usually highly fact oriented, and also you have a company attorney handling the whole thing. Call your own attorney please! If you disregard this request, don't be surprised if I answer with "homework question".


I am a U.S. attorney with offices in the United States and Belize. I have experience helping to protect assets, reduce taxes, and improve investment performance by utilizing global investment techniques.

Harvard University, A.B. degree; University of Houston Law Center, J.D. Degree; Fulbright Scholar

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