H-1B is a non-immigrant visa which allows a foreign national to work in the United States. H-1B holders agree to work solely for the employer who sponsors their H-1B, and if he/she enters into another employment opportunity with another employer who did not sponsor their H-1B, this could be grounds for his/her H-1B termination. Foreign nationals who arrive and stay in the United States on H-1B status are sometimes interested in starting their own business and the big question is whether they can without interrupting their H-1B status.
With the above in mind, it is possible for an H-1B holder to start their own business or engage in other investment opportunities as long as they are not active participants in such a venture. It is imperative that the H-1B holder’s involvement in such ventures are merely “passive” and not “active”. What does this mean? This means that the H-1B holder must not be handling the day-to-day activities of the business or venture, they cannot be the ones opening up the mail everyday or handling the phone calls. They must simply be a mere investor of the business or venture. It is important for the H-1B holder to not have an “active” role. Instead, the H-1B should hold a “passive” role which means as an investor, someone who sits on the board and has voting rights, perhaps a shareholder in the company, etc.
This is a grey area so it is recommended that an H-1B holder be very cautious and think thoroughly prior to being involved in another venture outside of their employment with their H-1B sponsor. It is highly recommended to speak with an Attorney prior to embarking on such a venture to analyze the risks that could be involved. Remember, getting an H-1B in the first place is not easy and so one should not engage in anything which could really risk him/her losing his H-1B status.