Side income on H1b

Amazon sambharguy
Apr 9 21 Comments

I am aware that I am not legally allowed to work for profit/non-profit except for my sponsoring employer.

But what if I register a SaaS business in India on relative’s name. I would be sole person running operations(code, support,...) for it. However, business entity and tax(in India) will be paid on my relatives name.

How would IRS or USCIS suspect or know about it?

Are there any other issues I should be aware of in such situation?

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TOP 21 Comments
  • Google todamoon
    they won't and probably won't care. what do you do once it becomes profitable or worth something? because on paper, your relative owns it.
    Apr 9 6
    • Google todamoon
      moving back to India means your relative will just willingly change the names to be yours? you'd be surprised to how people change once money is involved. I'd say, just register under your name. on h1b, they won't care too much.
      Apr 9
    • Amazon sambharguy
      OP
      Looking around some other forums, I got impression that it is easy to track income for IRS if registered under my name. So would avoid taking any risk in that case
      Apr 9
    • Twitch FUI
      You can still be the sole owner of the company in India or in the US. You just can’t get paid legally
      Apr 9
    • Amazon sambharguy
      OP
      @FUI Thats a good suggestion.

      In such scenario, will I need to show that I hired a manager which carried out operations? Will it require me to hire some freelancers just for dummy work?

      As per my understanding, there should be someone employed in business entity except me to carry out operations
      Apr 9
    • Twitch FUI
      Think of it as you being a major shareholder on board of directors who doesn’t work for the company. Always stay legal and pay taxes for your own defense. There’s a way to work things out legally.
      Apr 9
  • Amazon / Other y2dry3
    If they figure your journey will end with no return.
    Apr 9 3
    • Amazon sambharguy
      OP
      Looking for pointers on how could they figure it out?
      Apr 9
    • Amazon / Other y2dry3
      Only by chance. Imagine some enemy in India that doesn't like you being successful in the US just providing a clue to US immigration.
      Apr 9
    • Amazon sambharguy
      OP
      You would be a good tester 🤣🤣
      That seems like a plausible scenario however unlikely till business earns a lot of profit.

      I will need to keep things low profile.
      Apr 9
  • Oracle edsav
    Why relative? Why not father or mother or someone more trustworthy?
    Apr 9 1
    • Amazon sambharguy
      OP
      Father or Mother is always preferred.
      Had relative in mind because he has experience setting up business entity in India and more familiar with Tax purposes.
      Apr 9
  • Oracle / Mgmt aiabc
    I feel having it registered on parents name and not drawing any profits or transfer any profits to us under ur name will keep things cleaner ...
    Apr 9 0
  • Hortonworks inqzin
    Trust me , get a proffessional advice. I am sure you will find a lot of people going thru that way. Untill then, stay safe and dont risk your future on assumptions.
    Apr 10 2
    • Amazon sambharguy
      OP
      I understand your point. Whom to consult for professional advice?

      Lawyer? - I cannot take professional advice from lawyer when I am aware that what I am doing is illegal. What I would be asking is what are chances of it getting caught if I go forward.

      Any other person you have in mind for professional advice?
      Apr 11
    • Hortonworks inqzin
      See dont ask him something illegal. Ask him if he has another legal way. in short, explore. In case you dont find anything you should find what are consequences of that illegal way. Taking risk is great but only when it is calculated.
      Sorry, In my contacts I dont have anyone.
      Apr 11
  • Microsoft oMAG58
    Really? You are here asking how to evade taxes? Also I don't see how having a business outside of US conflicts with H1B requirement. H1B is for employment in the US.
    Apr 10 2
    • Amazon sambharguy
      OP
      I am not asking here how to evade taxes. On H1b, I cannot work for any employer be it in US or other foreign country.

      By working for my own firm(in India) is against H1b requirement.
      Apr 10
    • Microsoft oMAG58
      If you go through with this, are you going to report the income to IRS? If not, you're asking about tax evasion.
      Apr 10
  • Microsoft YoloM
    That will be fine
    Apr 9 0