Self Employment for I-134

[Brandon&Re 1]

Hey VJers,

The joint sponsor I am going to use is self employed, what all does he need to send to me as proof, just his W-2 or transcript from the previous year?

Thanks

[Anh map 2,098]

Tax transcript from 2010. Line 22 is the income amount used.

[Gary and Alla 3,694]

Hey VJers,

The joint sponsor I am going to use is self employed, what all does he need to send to me as proof, just his W-2 or transcript from the previous year?

Thanks

A co-sponsor must provide a completed I-134 form with verification of all income. IF his business is a sole proprieterhip or S corp. this can be copies of his tax returns with all schedules and attachments OR a tax transcript. The useful income number is line 22 from his PERSONAL income tax return. He cannot qualify on business income, the business is not sponsoring anyone.

IF his business is a corporation and files a separate return and he is, actually, an employee of his own corporation, then he would have a W-2 and a normal 1040 tax return.

A co-sponsor also needs to provide proof he is a US citizen OR Legal Resident.

He is not a "joint sponsor" for a visa. There is no such thing as a "joint sponsor" for a visa. He is a CO-sponsor. A co-sponsor must have income sufficient to support himself, your fiance(e) and any other dependents he may have.

His income is NOT combined with yours, it must be sufficient on its own. A "joint sponsir" would have his income combined with yours, this is not allowed for visas.

A "joint sponsor" can be used with the AOS and the incomes can be combined IF people are in the same household.

[Brandon&Re 1]

A co-sponsor must provide a completed I-134 form with verification of all income. IF his business is a sole proprieterhip or S corp. this can be copies of his tax returns with all schedules and attachments OR a tax transcript. The useful income number is line 22 from his PERSONAL income tax return. He cannot qualify on business income, the business is not sponsoring anyone.

IF his business is a corporation and files a separate return and he is, actually, an employee of his own corporation, then he would have a W-2 and a normal 1040 tax return.

A co-sponsor also needs to provide proof he is a US citizen OR Legal Resident.

He is not a "joint sponsor" for a visa. There is no such thing as a "joint sponsor" for a visa. He is a CO-sponsor. A co-sponsor must have income sufficient to support himself, your fiance(e) and any other dependents he may have.

His income is NOT combined with yours, it must be sufficient on its own. A "joint sponsir" would have his income combined with yours, this is not allowed for visas.

A "joint sponsor" can be used with the AOS and the incomes can be combined IF people are in the same household.

Okay, I just wasn't sure if a tax return would be sufficient enough, I meant co-sponsor I was just reading the I-864 while typing so joint sponsor was in my head. Here is another question then, if the person is self employed recently but his tax return is for a job he had, does this make him ineligible?

[Gary and Alla 3,694]

Okay, I just wasn't sure if a tax return would be sufficient enough, I meant co-sponsor I was just reading the I-864 while typing so joint sponsor was in my head. Here is another question then, if the person is self employed recently but his tax return is for a job he had, does this make him ineligible?

No. The I-134 asks for CURRENT annual income. Current means today, the day you sign the form. If you had an income of $22,000 in 2010 and that is what is on your tax return, and you got a new job last week that pays $63,000 per year...what is your "current annual income" today? $63,000.

You would attach your last years tax return and proof of current income (chec stubs, employment letter, etc.) At MOST consulates, current income rules the day.

If a sponsor/co-sponsor had income that is not claimed on taxes (workman's comp, child support, military combat pay, etc) you can claim that also and attach proof of the income along with your tax return.

[Brandon&Re 1]

No. The I-134 asks for CURRENT annual income. Current means today, the day you sign the form. If you had an income of $22,000 in 2010 and that is what is on your tax return, and you got a new job last week that pays $63,000 per year...what is your "current annual income" today? $63,000.

You would attach your last years tax return and proof of current income (chec stubs, employment letter, etc.) At MOST consulates, current income rules the day.

If a sponsor/co-sponsor had income that is not claimed on taxes (workman's comp, child support, military combat pay, etc) you can claim that also and attach proof of the income along with your tax return.

So how does a self-employed person show current income, he said the company is LLC. Do you think that last year's tax return will be good enough?

[Gary and Alla 3,694]

So how does a self-employed person show current income, he said the company is LLC. Do you think that last year's tax return will be good enough?

If it is an LLC he will be paying himself with checks (hopefully)he should have check stubs and have bank deposits to show that. He can also have an independent accountant do a P&L statement to attach to show current year income/expenses. If it is a corporation and pays him as an employee, then he is, technically, not self employed.

I am not a business attorney or accountant and I know that an LLC is a corporation but I do not know if it is an "S" corp (or can be) and would be covered by a personal (1040) return. Ask him if the LLC does its own tax return. If so, he would just attach his 1040 and w-2s.

Most consulates are satisfied with one year tax return for the visa. SOME request 3 years. For the AOS you have to attach one year and state the gross income for two other years and they can request 3 years if they want.

[Anh map 2,098]

With current employment being self employed this is not a straight forward situation. Last year's wages don't really matter.

Does the joint sponsor draw a regular paycheck with taxes and social security withheld?

If it is an LLC he will be paying himself with checks (hopefully)he should have check stubs and have bank deposits to show that. He can also have an independent accountant do a P&L statement to attach to show current year income/expenses. If it is a corporation and pays him as an employee, then he is, technically, not self employed.

I am not a business attorney or accountant and I know that an LLC is a corporation but I do not know if it is an "S" corp (or can be) and would be covered by a personal (1040) return. Ask him if the LLC does its own tax return. If so, he would just attach his 1040 and w-2s.

Most consulates are satisfied with one year tax return for the visa. SOME request 3 years. For the AOS you have to attach one year and state the gross income for two other years and they can request 3 years if they want.

S corp flows to your personal 1040 (at least mine does).

[Gary and Alla 3,694]

With current employment being self employed this is not a straight forward situation. Last year's wages don't really matter.

Does the joint sponsor draw a regular paycheck with taxes and social security withheld?

S corp flows to your personal 1040 (at least mine does).

You are right about the S corp and personal taxes. I am not sure if a corporation can be an LLC and an S corp. I had an S corp when I was self employed but never had an LLC so I do not know. I currently work (as an employee) for an LLC but I am not the CFO or even the bookkeepper, so what do I know?

[Anh map 2,098]

You are right about the S corp and personal taxes. I am not sure if a corporation can be an LLC and an S corp. I had an S corp when I was self employed but never had an LLC so I do not know. I currently work (as an employee) for an LLC but I am not the CFO or even the bookkeepper, so what do I know?

No, you choose either LLC or S corp.

[Gary and Alla 3,694]

No, you choose either LLC or S corp.

OK, then he should, technically, be an employee, not self employed if he has an LLC, right? In that case he will have regular paychecks and witholding, etc. (or at least he should)

[Crashed~N2~Me 970]

No, you choose either LLC or S corp.

An LLC may elect S Corp tax treatment by filing IRS Form 2553 (Form 2553 Election by a Small Business Corporation).

OK, then he should, technically, be an employee, not self employed if he has an LLC, right? In that case he will have regular paychecks and witholding, etc. (or at least he should)

Shareholder-employees will receive two tax documents from the S-Corporation at the end of the year: a W-2 wage statement (income as an employee) and a Schedule K-1 statement (income as an owner).