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Visa Compliance

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

H-1B holders can own an LLC. What they can't do — without extra paperwork — is actively work for it. Here's how to structure it correctly.

2026-06-08·6 min read

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.

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