LLC or C-Corp on H4 EAD

USA L1, L2 Visa
1

Hello everyone

So on H4 ead I plan to start some art work and not expecting any/lot of profit 6 months down the line.

  1. Single member LLC:
    Advantage: Protect against personal liability, Tax benefit
    But the issue is that during tax reporting it is treated as a disregarded entity (sole prpertourship) and there are chances of getting Audit during tax file.

  2. With multi member LLC you require atleast 2 members. I don’t want to involve my spouse (who is on H1B Visa) as a member on LLC due to any visa constraint. I read that you can keep spouse (H1b holder) as a passive investor without any issue.

  3. C-Corp: Double Taxation. Everyone is suggesting to go w/ LLC…

Can anyone please suggest what is the better option (considering tax benefit, no implication on visa/green card)

Thanks a lot!

2

LLC is your best option. There are no audit risks that are specific to this category. Taxes must be filed timely.