Registration of Sole Proprietorship *prior* to EAD?

[TAB2TAB 52]

Hi fellow VJers,

I am the USC and asking this question on behalf of my (now) husband of K1 visa.. We got married the end of May and filed AOS shortly thereafter. He is planning to start his own business in the arts/photography and he has been invited to attend his first arts festival in September (to have a booth and sell his photographic art).

We are still waiting on the EAD and hope to have this in the next 2-4 weeks. I have read many forum posts saying that it is perfectly legal/moral etc. to interview for jobs, even be hired for a job prior to getting an EAD; you just can't begin work/earn income. I am trying to verify whether it is similarly true that my husband can establish a sole proprietorship (i.e. 1. file his business name with the state Superior Court, 2. obtaining any necessary sales licenses/permits, and 3. obtain an EIN on the IRS website) *prior* to receiving his EAD, as long as he does not begin working/earning income.

From what I've read on VJ, it appears that working and earning income are the no-no's that USCIS cares about. Still, I can't help but be concerned that registering his business with the state and applying for his EIN with the IRS prior to receiving his EAD might not be something that USCIS will look upon favorably.

If we were to begin the process of establishing the sole proprietorship now, we should be able to complete the process and get his sales permits (another state) in time for the show's deadline in September. If we wait another 2-4 weeks until he (hopefully) has the EAD in hand, he will likely not have enough time to register his business and obtain the sales permits.

Can anyone shed any light on this?

Thanks very much!

Rob and Adrian

[Nich-Nick 3,353]

I am trying to verify whether it is similarly true that my husband can establish a sole proprietorship (i.e. 1. file his business name with the state Superior Court, 2. obtaining any necessary sales licenses/permits, and 3. obtain an EIN on the IRS website) *prior* to receiving his EAD, as long as he does not begin

My advice is call up the agencies and find out if one requires a certain immigrant status to receive the permits, numbers, etc. If they say yes you qualify, then get them. We know driver licenses and Social Security cards require certain documents. So find out if the things you need are possible by going to the source and asking questions.

Does he actually need an EIN? For the festival, will he have employees, withhold taxes from their wages, etc? A self-employed small business person isn't always required to have an EIN. If he goes big time with a staff in the future, then get the EIN and fancy business organization. If he has EAD by the festival, he can sell things, record his income, report to the IRS on Schedule C and Schedule SE. At least he won't miss the opportunity while setting up something big.

Yes he needs to collect state sales tax and needs a sales tax ID to remit what he collects to the state coffers. And presumably he can purchase supplies that go into creating his product (State) sales tax free because he will collect and remit sales tax on the final product.

Just my feeble thoughts......

[TAB2TAB 52]

Nich-Nick, feeble thoughts well-received. We agree that most likely there is no need for the EIN now; we may want to get it in the future to distinguish personal/business tax liability, or if he were to get more employees.

Do you think there is any mileage in contacting USCIS about this, or do you think the local agencies will be knowledgable enough about immigration status to know whether he is qualified to proceed?

Thanks again!

[Nich-Nick 3,353]

Nich-Nick, feeble thoughts well-received. We agree that most likely there is no need for the EIN now; we may want to get it in the future to distinguish personal/business tax liability, or if he were to get more employees.

Do you think there is any mileage in contacting USCIS about this, or do you think the local agencies will be knowledgable enough about immigration status to know whether he is qualified to proceed?

Thanks again!

On a state level, I think they won't know anything about immigration, especially something like a K1. Social Security administration doesn't even understand immigration. I was thinking, call to ask about your sales tax thing. If they should require some proof of immigration status, then you don't have it just yet. If they just want your name and address and what you want to call your business, then you get a sales tax number. I don't know how it works. Find out, but don't ask permission from USCIS. What I would do is go to the source and say "what is required to get a sales tax number" then get it if eligible. I personally wouldn't worry that USCIS might be checking state records to monitor me. But what you choose to do may be different.

According to this, there is no law prohibiting even an illegal to start a business in the US. http://www.nolo.com/legal-encyclopedia/is-illegal-undocumented-immigrant-start-us-business.html

In the end, it's only going to be opinions you get so go with your logic.

[Plankton 0]

Hello guys! Anybody have an experienced for EAD benificiary to put up business as sole proprietorship and can be hire other person? Appreciate any concern.

Hello guys! Anybody have an experienced for EAD benificiary to put up business and can be hire other person? Appreciate any concern.

Edited March 22, 2015 by Plankton

[KayDeeCee 4,892]

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