Can I Start a Company on H1B Visa?

Hi, this is immigration attorney Toni Xu. In consulting clients, I often get asked the question, “Can I start a company on H1b Visa?” The answer depends on why you want to start a company and if you are looking to sponsor yourself for a visa.

In general, there are two scenarios where you may want to start a company on an H1b visa.

Scenario One: The Side-Hustler

You want to start a side hustle while working full-time on H1b at your primary job

Under Scenario one, let’s say you want to start a side hustle and continue your 9-5 job. This is tricky. You CAN start a passive income stream and incorporate a LLC or C-corp for this passive income stream, but you CANNOT work for this business entity. How can you make money on a business without working for it, you might ask. Great question. According to U.S. immigration law, you cannot “Work” for anyone else who’s not the sponsor of your H1b visa. However, if you are the passive shareholder of a company, and receive only "dividends” as a result of your investment, you can be an “owner” of a business that way. So long story short, setting up and owning the business? Yes. Running the business? No.

Scenario Two: The All-Out Entrepreneur

You want to work for your own company and have this company sponsor your H1b

This brings us to scenario two, you want to work for your own company and have THAT company sponsor your H1b. This is doable and I’ve helped many clients execute this exact route successfully. The trick is to give up control in your company.

Again, I emphasize, if you want to own and run a company on H1b, you must set up mechanisms in which the business is “controlled” by someone else. This can be a co-founder, a board of directors, another LLC, or other legal entities that can legally hire and fire you.

If this is the route you want to go with, talk to me right away to figure out a concrete plan.

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