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Ask HN:Can I start a company on an H1B visa?

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Re: Ask HN:Can I start a company on an H1B visa?

#11

Post by kareemm »

sbansal wrote: post #2

I am planning on starting a company with a partner who is a US citizen. I currently hold an H1B visa. Just wanted to know if people here have some pointers as to if this is even possible. I am going to be talking to an attorney but just wanted to get an idea before that. I have read about the startup visa act but it is still pending legislation.

It is definitely possible - I've been in your shoes and done it. Transferred an H1 from an existing employer to a startup run by my biz partner (who also had a majority share). We hadn't raised any $$ when the transfer happened, though we closed an angel round a month after the transfer happened.

Things may have changed since 07 (funding requirements, etc). IANAL, though - you definitely want a good immigration lawyer who's familiar with this stuff.

Re: Ask HN:Can I start a company on an H1B visa?

#12

Post by jacoblyles »

sbansal wrote: post #2

I am planning on starting a company with a partner who is a US citizen. I currently hold an H1B visa. Just wanted to know if people here have some pointers as to if this is even possible. I am going to be talking to an attorney but just wanted to get an idea before that. I have read about the startup visa act but it is still pending legislation.

Totally possible. I've seen it done often. Even by double immigrant founders.

Re: Ask HN:Can I start a company on an H1B visa?

#13

Post by karterk »

avichal wrote: post #9

Background: I've hired many many people on H1B and helped friends on visas start businesses. TL;DR - In practice, this is very difficult to pull off. There are some chicken and egg issues that make it very difficult and the government is a pain in the ass about it too. The rule of thumbs are that you cannot control the business that is giving you a visa (you can be fired from the job), the company has to demonstrate…

The safest option is to try and start something on the side, get enough traction to be able to pull together a seed round, and then have that new company sponsor your h1b.

However, from what I heard - if you're on H1B you can only work for the company that sponsored your visa. So, the "best option" itself is pretty dicey.

Re: Ask HN:Can I start a company on an H1B visa?

#14

Post by mjg59 »

karterk wrote: post #13
avichal wrote: post #9

Background: I've hired many many people on H1B and helped friends on visas start businesses. TL;DR - In practice, this is very difficult to pull off. There are some chicken and egg issues that make it very difficult and the government is a pain in the ass about it too. The rule of thumbs are that you cannot control the business that is giving you a visa (you can be fired from the job), the company has to demonstrate…

The safest option is to try and start something on the side, get enough traction to be able to pull together a seed round, and then have that new company sponsor your h1b. However, from what I heard - if you're on H1B you can only work for the company that sponsored your visa. So, the "best option" itself is pretty dicey.

An H1B holder can't simply move from their sponsoring company to another in the same way that a permanent resident or citizen can, but an H1B can be transferred to another company that also meets all the requirements. There's paperwork involved, but it's definitely possible and legal.

Re: Ask HN:Can I start a company on an H1B visa?

#15

Post by avichal »

karterk wrote: post #13
avichal wrote: post #9

Background: I've hired many many people on H1B and helped friends on visas start businesses. TL;DR - In practice, this is very difficult to pull off. There are some chicken and egg issues that make it very difficult and the government is a pain in the ass about it too. The rule of thumbs are that you cannot control the business that is giving you a visa (you can be fired from the job), the company has to demonstrate…

The safest option is to try and start something on the side, get enough traction to be able to pull together a seed round, and then have that new company sponsor your h1b. However, from what I heard - if you're on H1B you can only work for the company that sponsored your visa. So, the "best option" itself is pretty dicey.

Transferring an H1B to a company that the government thinks is legitimate is very straightforward. I was just hoping to outline the steps to getting a company considered legitimate. So if you can get your company off the ground and considered legitimate (the hard part) then you can have your visa transferred to that company (the easy part).

There are certainly employment contract issues -- moonlighting clauses, non-solicitation, and non-compete agreements. But those all apply to anyone building something on the side while employed full-time.

Re: Ask HN:Can I start a company on an H1B visa?

#16

Post by kijin »

avichal wrote: post #15
karterk wrote: post #13

Earlier quoted context omitted.

The safest option is to try and start something on the side, get enough traction to be able to pull together a seed round, and then have that new company sponsor your h1b. However, from what I heard - if you're on H1B you can only work for the company that sponsored your visa. So, the "best option" itself is pretty dicey.

Transferring an H1B to a company that the government thinks is legitimate is very straightforward. I was just hoping to outline the steps to getting a company considered legitimate. So if you can get your company off the ground and considered legitimate (the hard part) then you can have your visa transferred to that company (the easy part). There are certainly employment contract issues -- moonlighting clauses, non-s…

I think the point @karterk was trying to make is that it might be illegal for you to do any paid work at all at your own startup (or any other company other than your original employer), regardless of whether your original employer allows moonlighting or not. I'm not sure how H1B works in the U.S., but a lot of countries have rules like that attached to work visas. So until your visa has been transferred to your startup, your startup can't pay you any salary.

Re: Ask HN:Can I start a company on an H1B visa?

#17

Post by mathrawka »

chx wrote: post #8
sbansal wrote: post #2

I am planning on starting a company with a partner who is a US citizen. I currently hold an H1B visa. Just wanted to know if people here have some pointers as to if this is even possible. I am going to be talking to an attorney but just wanted to get an idea before that. I have read about the startup visa act but it is still pending legislation.

Try operating from Vancouver, BC. There's a reason so many of your kind end up here.

"your kind" sure has a nuance in English that doesn't mean something good...

Re: Ask HN:Can I start a company on an H1B visa?

#19

Post by vineet »

Quick Answer: Yes, you can start the company. BUT, you can't work for the company that company. Mostly, work = getting a salary.

If you are trying to start a company, feel free to incorporate it and own all of it. I would suggest worrying about getting paid once you have revenues coming in.

Then hire a good lawyer to figure out your options.

If you see huge growth getting paid should be easier with investors (IANAL). Alternatively, you can have it run on the side with the company collecting the revenue that you can eventually retire on.

Re: Ask HN:Can I start a company on an H1B visa?

#20

Post by suprgeek »

I have been in you shoes in the past (and left America due to frustration of the complexities of the process). Also, I am not a Lawyer - caveat emptor.

Short answer - get a US citizen to act as the Majority Partner in the business if at all possible. Do not accept even a cent from your new company if you go this route until it is set up and Generating Payroll. Once founded then transfer your H1 using your new company and then become employee/partner.

There are still ways around the stringent H1-B rules for employment that you can use to start a company in your name. However I must advise extreme caution in using any of them. The USCIS (citizenship and Immigration) might take a dim view of people who enter the US for a "Specialty Occupation" visa and then switch to founding companies.

I wish you the best of luck - it takes a lot of work to get a company going. Doing it while dealing with the complexities of the US Visa system is just adding to the mountain of difficulties you need to overcome.

If you do pull it off legally, maybe you can write a blog post that tackles this issue for other aspiring entrepreneurs who would love to tread in your path.

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