Visa Basics for Foreign Entrepreneurs Coming to the U.S.
Non-immigrant foreign entrepreneurs who want to start businesses in the U.S. often – and rightly – have visa-related concerns. A typical question: “What kind of visa do I need to start my business?”
This post provides a brief answer to that question.
Visa Waiver – Allows an individual to come to the U.S. for 90 days; no extension or change of status is allowed. Allows attendance at business meetings and other passive business development activities, but does not allow compensation from U.S. sources.
B-1 Visa – Business visitor visa: Allows admission for up to six months. Can be extended, and permits a change to a different immigration status. Allows passive business activities, but not productive work in the U.S. or receipt of any U.S.-based remuneration, though expenses can be reimbursed. Must benefit a foreign, rather than U.S., business.
E-2 Visa – Investor visa: Requires that a U.S. entity be set up and that a substantial investment made into that entity. Takes several months to obtain and is comparatively expensive. Applies to investors from countries with which the U.S. has applicable treaties. Applies for two years; may be extended for additional two-year periods without limitation.
H-1B Visa – Specialty occupation visa: Allows a U.S. employer to hire an individual for a specified complex or unique job for a period of up to three years (which typically can be extended to six years) because the position cannot be filled easily from the workforce available in the U.S. The individual can form a business in the U.S. but cannot work for it. Note that USCIS gives H-1B cases particularly careful scrutiny.
L-1 Visa – Intracompany Transferee visa: Requires setting up a U.S. company that is a subsidiary or affiliate of an existing foreign company. The individual must have been working for the foreign company for at least one year prior to the transfer and must be working in the U.S. in a managerial, executive or specialized-knowledge capacity. Valid for five years (special-knowledge employees) or seven years (managers or executives). “Dual intent” visa, meaning the holder can apply for a green card without jeopardizing the visa.
The U.S. Department of State offers more-detailed information starting at its Temporary Workers Overview page.
Visa issues can be quite complex. If you have visa-related questions, you should retain a qualified immigration lawyer.
Related posts:
- Visa Basics for Foreign Entrepreneurs, Part 2: What Constitutes Work?
- Can I Get an H-1B Visa Working for My Own Company?
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.
Dana Shultz is a business-savvy lawyer located in Northern California's San Francisco Bay Area (in the East Bay, near Oakland) who has in-depth knowledge of law, business, technology, and the needs of startup and early-stage companies.
@Adg
Individuals with any visa status can own part or all of a C corporation – the problem arises if a shareholder without an appropriate work visa tries to work for the corporation.
Hello Dana,
Can you please tell me, I have a f-1 visa, and I study in US now. Can I create a company in US? Can I work for my company? What kind of company is better? Actually, I wanna sell fried chicken on campus after school. But my school told me, I need create a company.
@Shin Fu
You can form a company, but you cannot work for it (unless you have CPT or OPT). The appropriate type of entity is a decision that requires more information, time and analysis than can be provided in a blog comment.
@Dana
Hi Dana,
thanks for all your replies and your post, its really interesting to read and helps a lot!
I am pretty much in the same situation that Seraca described:
I want to found with an US citizen. It is not a branch of any company. And I cannot invest a 5 or more digit amount of dollars.
I am a German citizen, with considerable work experience.
Our company is not founded yet.
So the following questions:
-> Does it has any bad influence of me attaining a visa to found as an LLC?
-> Should I still go for the H1B? What is the best way and how are my chances?
We are considering every opportunity. I can be confounder, or work as employee or volunteer. What should we do?
Thanks!!
@Bastian
You should discuss your situation with an immigration lawyer who specializes in work visas (please see this blog’s Foreign Countries page).
Thanks for the excellent post.
I wondered if you could clarify around starting a business with an American co-founder.
Is it possible to create the company with an american co-founder (still retaining over 50% of the company) and that company hire me as a skilled worker? I have a Masters degree in Mathematics from a top non-US university and the startup is mathematically orientated.
Thanks in advance.
Dave
I believe that what you are trying to accomplish is discussed in Can I Get an H-1B Visa Working for My Own Company?.
Hello Dana, I came here on B1 visa and stayed, I am applying for asylum and received a letter from CIS that they are looking at my application and until the decision is made I can legally reside in US (California). I would like to register a carpet cleaning company, is it going to be possible?
Thanks so much in advance
You may form the new business, but you may not work for it without a Work Authorization Card. (Sorry, but I’m not an immigration lawyer, so I cannot provide additional details.)
@Dana
Some very helpful information on your site, thank you. What if the work is physically done outside of the US? I am a Canadian looking to start a business offering online education with two US citizens and (my portion of) the work would primarily be completed from Canada.
US work visa issues do not apply to work done outside the US.