Four of us are trying to open up a restaurant, 1 GC, 3 H1B. From reading other blogs, it looks like we can do it as long as the H1B's are passive investors and dont work for the company, and the GC can be Manager/Owner. And it seems like we can share profits as dividends as well. From the sources I've been reading, C-Corp or LLC seems like the right business to open. But then other blogs say H1b's can only have C-Corps, which I believe is more difficult to set up.
Has anyone done this before?
Which is better C-Corp or LLC.(LLC -C corp?)
How do you claim profits, and file taxes?
any help is appreciated.
Thanks.

You got it right, on H1B you can only be passive investor and otherwise stay out of it
So, your GC friend only can actively work, all others cant even do anything (preparing meal, sitting in restaurant, serving customers, etc) but as long as you are not doing anything on the paper, it should be good (if you know what I mean)

C-corp has double taxation so LLC is better

When they sue, they sue the company,not person(from past experience. was sued claiming 1 million $. i could not sleep for 3 weeks). So, attorney takes care of that. One with GC can deal with that.
First you need to register the business. There are companies that will do all those things for you charging a small fee somewhere from 500-1500. CPA will take care of your monthly, yearly taxes and employee paystubs. Again, CPA charges somewhere from 200-600 depending on the volume of your business. Now rest of the jobs like construction, hiring cooks, waiters, is all upto you. Construction companies take care of all the permits. Its easy if you find closed restaurants. You will save lots of $$$$ on that.
Good Luck!