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.
Hi Dana,
From 2007 until 2009, I’ve been the manager for a real estate company in the Netherlands that is now interested in opening up a daughter company in the US. If I take up their project, could I obtain an L-1 visa through their company or does the “one out of three years” prior to the transfer have to be without (temporarily) quitting?
@Maria
The applicable regulations say nothing about continuous employment without quitting. From 8 CFR Section 214.2(l)(1)(ii)(A): “Intracompany transferee means an alien who, within three years preceding the time of his or her application for admission into the United States, has been employed abroad continuously for one year by a firm or corporation or other legal entity or parent, branch, affiliate, or subsidiary thereof, and who seeks to enter the United States temporarily in order to render his or her services to a branch of the same employer or a parent, affiliate, or subsidiary thereof in a capacity that is managerial, executive , or involves specialized knowledge.”
@Dana
Thank you for your quick reply Dana!
I stopped working for the company in February 2010 (and started October 2007). In your understanding, would that mean that my last chance to apply through them is February 2012 or February 2013?
@Maria
You would have to apply by February 2012, because February 2009 would be the start of the “three years preceding” and the start of your last year with the company.
Hi, Dana how are you?
I have a start-up and I am a US citizen. However one of my main partner is F-1 visa status student. Can she be a director of the company (passive role) and also invest in the company as a stockholder? I am not looking for her to become an officer and help me run the company but I would still like her to be involved in some extent.
Thank you very much.
@sean
Stockholder is fine. Director should be OK so long as her role really is passive – for example, approving resolutions rather than managing operations or personnel.
Thank you very much for your prompt response! :)
hello Dana,
I am working for a employer in US on L1R visa. I am also building a startup product and company with a friend. I am not earning anything from it. I am also not using my current employers time and resources. I am also not using any IP of my current employer and domain of both is quite different. Is it illegal ?. I will be one of the founder on papers. I have not told my current employer about such involvement. what should I do ?
@GJ
I’m sorry, but your questions are both too detailed and too broad in scope to be suitable for answering on a blog. You should consider retaining a lawyer to guide you.
Hello Dana ,
can you please tell me – if at f-1 status we can own 50% stock of a “C corp” and stay a passive partner . If we can’t how much can we own .