[Music] [Applause] [Music] hi hello namaste hotihati welcome to yet another interesting I lead tax talks I'm your tax consultant and kumar ki at iled tax.com and thank you very much for all your love that you're showing uh towards uh this little initiative that me and my team are doing to spread that awareness about the US tax laws especially among the Indian community in the USA now one of the questions you know that I received the last week was can I start business on H4 EAD while you know uh people have some known apprehensions or something you know that they have found online here is something you know which I wanted to share it with you so can I start business on H4 this is something exclusively you know for Indians in the USA or people who are of course you know uh the non US citizens or non US nationals now H4 EAD as you know it is H4 employment authorization document it's a work permit issued by USCIS United States Citizenship and Immigration Services to certain H4 visa holders who are dependent of H1 visa holders allowing them to work legally in the US without an employment visa like the regular H1 or L1 now what can you do with an H4 EAD what happens what all can you do why is it so uh peculiar than the rest of the visas now here we have shortlisted three primary reasons okay three primary utilities you know what you can do with H4 first thing you can work for any US employer in any job sector you can work full-time or part-time or with multiple employers also the EAD must be valid and must be current to work and once it is expired the work must stop until the EAD is renewed so you have to ensure that EAD is valid and it is up and running in case you want to get into employment the second thing is what we have primarily titled today's tax stocks you can start or run your own business in the USA so people who are on H4 AD they can start or run their own business in the USA so you can establish and actively manage in a business such as an LLC or a Ccorporation so talk to us or talk to your tax accountant to know whether an LLC is right for you or a corporation and third thing is you can either freelance or serve as an independent contractor uh without being you know tied to one employer you know like the way H-1B visa holders are you can be a freelancer or you can serve as an independent contractor and then something that you have to keep in mind here is like if your spouse who is on H1B loses his or her H1B status then your H4 EAD also will become invalid now there are some restrictions you know on H4 EAD so uh when the wife is all set let's say you know in in our case you know we see most of the wives you know on H4 EAD so they have some dream to pursue a passion to live something you know they want to do something on their own so here is something you know that uh all you wives must keep it in mind or anybody who is on H4 EAD must keep it in mind when you want to uh explore your H4 EAD for business purposes now first thing as I said EAD must be valid ensure that EAD remains valid if it expires you must seize all work including business operations until it is renewed until it gets renewed very important you can't take these things lightly next one compliance with all US tax laws make sure that you hire a good I mean an experienced EA or CPA when you're starting your business you know running payroll maintaining books of accounts and things like that your business must adhere to all federal state and local regulations including licensing taxation and then employment laws so don't be frugal uh when you are hiring a good accountant because non-compliance of many things will cost you a lot of fines and penalties too next your H1B spouse cannot actively work if your spouse is on H-1B visa they can have ownership in your business but cannot actively work for it without their own work authorization you know the way you know H1 works so because they already have you know certain terms and conditions and they're governed by the USCIS so they cannot actively work for your business they can be you know passive owners in your business but they cannot actively work for your business so take care of that that may also breach you know some of the employment terms of your spouse with his or her employer next now how do we go about you know starting your dream business yes an Indian national holding a H4 visa with an employment authorization document can legally start and operate business in the USA so here are some steps that's involved first thing is choose a business structure so when you come to IE Tax LLC YouTube channel you will see the playlist there you know I lead tax planners i lead tax planners so there you will see you know that I have made uh videos on what is an LLC what is a partnership what is S corp what is C corp so I made different videos on that you know probably you can take a look at uh them also to understand which business structure is right for you so here you got to decide on the type of business entity whether it's an LLC or a Ccorporation and then depending on your business type and the state where you want to start this business you may have to take you know some licenses or permits again talk to a good enrolled agent or a certified public accountant who has been experienced in this field next one register your business with the state you know where uh you want to start the business so file the necessary documents with the state where you plan to operate and uh any tax professional should be able to help you set up the business you know by giving you the right operating uh agreement you know the formation uh certificate you know and other necessary documents next one just like how you know an individual will have SSN similarly businesses will have something called as EIN so you got to obtain an employer identification number for your business so you have to apply for an employer identification number and that is issued by the Internal Revenue Service so that's like your tax ID number and finally open a business bank account see a lot of people you know when they start their business they mix up both personal and finance they swipe their personal credit card you know personal debit card for business you know again uh when the accounts are to be settled when the returns are to be filed you know they say nanda you know I spend from my personal account this my that this and all so it's like u ki okay so I suggest and it is very strongly recommended that you Keep personal things personal and business things business so have a separate bank account in the name of business and whatever business expenses you are incurring let your uh business bank account pay for it and have a good bookkeeper who can maintain your monthly bank statements credit cards and give you you know a P&L or a cash flow statement every month to understand you know how your business is progressing so you cannot consider this you know as a conclusive evidence i'm sure you know you may have some more questions uh on how to start a business in the USA even if you're not on H4 also please do write to me please do visit our website I tax LLC that's primarily focused on filing but I tax planners is focused especially you know on planning so I keep telling my clients you know like stop filing taxes annually and start planning taxes monthly you have to review your IEL you have to keep tracking you know your I lead your finances every now and then at least you know once in a quarter so if you're interested you know to more know more please write to me asknandaax.com or you can also WhatsApp 1234 hi I mean 234 I elite that's triple 455323 and uh our team will be more than happy to set up a call with me and for uh and if you found this video interesting please do share it with at least one person in your family in your friends and in your team yeah it will motivate us it will also encourage us to serve better and as I always say review your I lead you have come a long way you have worked really hard to be where you are some of you might be struggling still so it's very important you know that you hire the right consultants who can advise you on how to optimize your incomes on your liabilities on your expenses on your assets and then dreams review your elite if you're married sit with your spouse even otherwise just sit alone you really don't need a professional here when you're reviewing your elite your income your liabilities your expenses your assets or investments and your dreams you know what you want to do sit down review them and as questions come then you will need people like us and I'll be more than happy to help you yeah please do share this with somebody so that you know it is useful to them and if you have any more interesting uh tax questions please do write to me and I'll be more than happy to assist you yeah take care until we meet again [Music] bye-bye heat heat [Music] [Music] [Music]