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I think the easiest way to achieve this would be for your brother to form C corporation, and name a "resident agent" (called a "registered agent" in some states). This agent has no ownership or management role in the company -- it's just someone who lives in the state of incorporation, and who the company authorizes to receive service of process (SOP) and other official notices on its behalf.

The new company would issue common stock, half to you, half to your brother (so you'd own half the company, but you would not be listed as an officer -- only your brother's name would appear on the corporate filings). Your brother would draw a salary, you wouldn't. Consequently, you would not be getting paid by the company or be on record as having any active part in managing it -- you'd merely be a passive investor or stockholder (of course, nobody can keep you from giving your brother "free advice" on how to run the business).

As the company's value increased, so would the value of your shares. If the company paid a dividend to shareholders, you get it just as you would if you owned stock in any other U.S. company that paid a dividend. You'd claim it as income and pay taxes as appropriate.

There are people and companies that specialize in creating corporate entities like this, even to the point of handling the filings, opening a bank account, and setting up a virtual office. If you search for "registered agent" online, you'll probably find dozens of them who can advise you in more detail. Best wishes.

Dear Alchemist,

I am Indian with H1B visa. In last 4 years I have explored multiple companies law in different states of USA.

Theoretically, any body can do business in USA without even being here. USA is heaven for enterpreneurs and setting up a business is piece of cake. You could do entire setup sitting in the home.

For your specific situation, I found that state of Delaware would be best to get incorporated. State of Delaware provides multiple flexibitlity in company incorporation and partnership with least government intervention. That is why 60% of fortune 500 companies are incorporated in Delaware.

There are multiple web-sites with more information on this (google them), one of them is: www.thedelawarecompany.com

Also, for all your legal consultation need (family or business) you can have a legal insurance and have unlimited telephonic consultation over phone for any legal matter. Do visit www.JusticeMadeSimple.com or write me.

Best of luck,
Nishant