How can i start a Company on H1B visa- Complete Guides

Are you H1B worker who plans to start your own US-based business? Picking up our understanding of US immigration and startups, in this guide, we will give you all the information about how to start your own US-based company, what documents are required, and all the important things before opening the firm. This guide will walk you through what you should know to get started. Many people have a similar question: Can I start a Company on H1B visa. Can I start a Company on H1B visa? Can H1B holders start companies?

What is an H1B visa?

The H-1B visa is a nonimmigrant visa that allows foreign citizens to work for a US company. The H1B visa is employer-specific. In other words, each H-1B is only valid for one specific company. You cannot work for numerous companies while on H-1B status, so starting your own company can seem like a tricky task. Fortunately, it is very possible to set up and launch a new company without work authorization, as long as you do not “work” for the company before getting a visa.

What constitutes “work” and how can you set yourself up for success for future visas? We’ll get into that shortly!

Read More: Top 5 online jobs for international students in USA

H1B visa requirements

Before we discuss creating a new business as an H1B visa holder, let’s check the H-B visa requirements.

• Valid job offer: To qualify for an H-1B (or any work visa), you must have a valid job offer at a company that is lawfully included in the US
• Specialty occupation: Your job offer must be for an entry-level position that requires a degree which is a bachelor’s degree or higher in a related field. You must have the required degree to apply. In other words, if you are to be Chief Marketing Officer, the position must require at least a bachelor’s degree in business, marketing, or any other related discipline.
• Employer-employee relationship: You are restricted from being self-employed, but you can acquire a work visa at a company you find, though. USCIS differentiates between self-employed workers and eligible employees by looking for an employer-employee relationship. You will demonstrate an employer-employee relationship if you own less than 50% of the company as a founder or have a Board of Directors.
• Prevailing wage requirement: Your company must be able to pay you a salary that meets or exceeds the Department of Labor’s minimum wage level in the US county where you will work

As you consider founding a startup, remember these H-1B requirements. For example, you might be a Software Engineer at a large tech company. While your background qualifies you for that role, it might not qualify you for the role you want to hold at your startup.

If you want to be CEO at your new company, you will need a relevant degree, and your startup will need to pay the prevailing wage for CEOs in your area.

Other alternative visa categories similar to H1B Visa

There are 3 options on the behalf of an H1B visa. and there is not the only option for you to start a company in the US You can also analyze other US nonimmigrant status options, such as:

1. O-1 Visa: The O-1 is selected for its unlimited extensions and flexible criteria. Many venture-backed creators are ready for the O-1 visa without even recognizing it!
2. E-2 Visa: If you are from a compact country, you may be able to reserve an E-2 visa by investing in your company.
3. Green Card: The green card process can take years, but once you become a permanent resident, you can legally work for any US company. If you don’t need to work for your startup immediately, you may consider beginning the green card process now.

Can I start a Company on H1B visa?

If you are wondering H1B visa holders you can start a business, we have a piece of good news for you. The answer is “yes,” as long as you deliver to the rules of the visa. To deliver some context, let’s summarize the H-1B visa requirements.

How to start a company on H1B visa

Steps for business registration

Same business registration requirements vary by state, but generally, you must: 

• Choose a state to register in: It’s almost always the most comfortable and most tax-beneficial to register your business in the state where you live. If you operate in multiple states, you may need to register or file for foreign capacity there as well.
• Appoint a registered agent: A registered agent is someone with a physical location in the state where you want to incorporate your business. They will receive official documents and notices on your behalf. Fees usually range between $150 to $300.
• Choose a name: Pick a name for your business that complies with state rules. Usually, it must not already be taken by anyone else.
• File articles of organization: Articles of organization are enrollment documents where you input official company details like your name, address, business type, and the names of your partners. Expenses vary from $35 to $500, depending on the state.
• Create an operating agreement: Operating arrangements detail how you run your business. While some states don’t need them, they can be helpful in explaining administrative structure, roles, and processes. Fees start from around $99 for online assistance to $500 to several thousand or better for professionals and companies.
• Apply for your EIN: In some circumstances — like if you plan to hire employees or choose C-corp taxation status — you must apply for an Employer Identification Number (EIN). Other times, it’s optional. Numerous choose to use an EIN nevertheless to limit disadvantages, safeguard against individuality robbery, and more smoothly open a business bank account.
• Comply with state & federal regulations: Depending on things like your location and profession, you may need to apply for business licenses or permits and file annual reports. And no matter what, you need to complete national taxation and reporting necessities (more on that to come)