Investing in a private company while being on H1B Visa

[Rosyee]

Hello Everyone

Here is my current status with company ‘A’ which I am very happy with.
H1B visa valid until 2/4/15 and they have filed my GC and I140 already approved.

Question:
My friend (US Citizen) has opened a company back in 2009 and he is looking for some funding and investors to invest in his company.

Can I invest in his company and become a partner in his company even though I am on H1B visa? I will not be working in his company in any shape\form.
If yes then can I earn the profit from his company based on my investment?
If yes then how can I report this profit in my yearly income and how can I pay taxes for this income?
If I do so, would this may affect my GC process with company A and reduce my chances of getting GC?

I have seen a lot of people investing in stocks in public companies even being on H1B visa and earning profit. They get some form (1099?) from bank to file the taxes on that profit. I think investing in a private company would also be same or that is not possible?

Thanks.

[Rosyee]

Senior members, can you please help with below questions?

Hello Everyone

Here is my current status with company ‘A’ which I am very happy with.
H1B visa valid until 2/4/15 and they have filed my GC and I140 already approved.

Question:
My friend (US Citizen) has opened a company back in 2009 and he is looking for some funding and investors to invest in his company.

Can I invest in his company and become a partner in his company even though I am on H1B visa? I will not be working in his company in any shape\form.
If yes then can I earn the profit from his company based on my investment?
If yes then how can I report this profit in my yearly income and how can I pay taxes for this income?
If I do so, would this may affect my GC process with company A and reduce my chances of getting GC?

I have seen a lot of people investing in stocks in public companies even being on H1B visa and earning profit. They get some form (1099?) from bank to file the taxes on that profit. I think investing in a private company would also be same or that is not possible?

Thanks.

I would really appreciate any response.

[raghvi]

Hello Everyone

Here is my current status with company ‘A’ which I am very happy with.
H1B visa valid until 2/4/15 and they have filed my GC and I140 already approved.

Question:
My friend (US Citizen) has opened a company back in 2009 and he is looking for some funding and investors to invest in his company.

Can I invest in his company and become a partner in his company even though I am on H1B visa? I will not be working in his company in any shape\form.
If yes then can I earn the profit from his company based on my investment?
If yes then how can I report this profit in my yearly income and how can I pay taxes for this income?
If I do so, would this may affect my GC process with company A and reduce my chances of getting GC?

I have seen a lot of people investing in stocks in public companies even being on H1B visa and earning profit. They get some form (1099?) from bank to file the taxes on that profit. I think investing in a private company would also be same or that is not possible?

Thanks.

As far as I know it is not allowed. You are in US on H1 for your employer and your income should be derived only from there of.

Investing in stocks as passive investments without actively indulging in day trading may be allowed.

You should probably consult with a tax expert as well as an immigration attorney before getting into this.

This is my opinion not legal advice.