Founding company and H-1B

[username172]

Hi,

 

I am currently on H-1B employed by a large corporation, however, I have been considering founding my own company/startup with a US friend. We would like to fund this startup entirely through our own savings for the first 12 months. The initial investment would be fairly substantial (but not high enough for EB5 investor visa). 

 

Is it possible for the new company to sponsor an H-1B for me? There would be an employer-employee relationship as my partner would be able to fire me, so that case is taken care of. However, since the startup is self-funded, we would like to compensate just in equity for the first 12 months. Is this a possibility with the H-1B? Also, would it be possible to apply for the H-1B while I am still employed at my current employer (on their sponsored H-1B)? I would leave only if the second H-1B comes through.

 

Thanks!

[omshiv]

you cant be the owner of the company which sponsored the H1B.

[JoeF]

Hi,

 

I am currently on H-1B employed by a large corporation, however, I have been considering founding my own company/startup with a US friend. We would like to fund this startup entirely through our own savings for the first 12 months. The initial investment would be fairly substantial (but not high enough for EB5 investor visa). 

 

Is it possible for the new company to sponsor an H-1B for me? There would be an employer-employee relationship as my partner would be able to fire me, so that case is taken care of. However, since the startup is self-funded, we would like to compensate just in equity for the first 12 months. Is this a possibility with the H-1B? Also, would it be possible to apply for the H-1B while I am still employed at my current employer (on their sponsored H-1B)? I would leave only if the second H-1B comes through.

 

Thanks!

You can invest in a company, but you can NOT work for it, not even for free, without the appropriate work authorization.

In particular, you can NOT ask your friend or tell your friend to file an H1 for you. The act of instructing (or asking) your friend to do so is already working.

The bottom line: Your own company can not file an H1 for you.

[username172]

Please note that I mentioned that an employer-employee relationship would be established i.e. I would actually own a minority share of the company. My other partners would own the majority of equity (and also work at the startup) and would also be in the position to fire me which is a condition for employer-employee relationship.

 

I believe it should be possible to sponsor an H-1B in this case, however, my question was whether a salary must be paid. Since we are funding the company from our own savings, we would like to compensate with equity only for the first 12 months until we have revenue.

[JoeF]

For an H1, you absolutely have to get paid. And that has to be for real.

The company has to be able to pay the salary in real money, cash on the hand, not in equity.

And there would be a lot of scrutiny if you are a co-owner of the company.