CAN AN H-1B HOLDER START A BUSINESS IN THE USA?

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.

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About the Law Firm of Sovmya George

While I was blessed to be born and raised in the United States, that is not the case for my parents. My parents were born and raised in Kerala, India and immigrated to America as young adults. They came with big dreams and hopes of wanting to raise their children in the United States. My parents’ bravery allowed my sister and I to have a secure and fruitful upbringing here in America, in the land of opportunity and diversity. I understand there are many individuals, like my parents, who have big dreams and hopes for their future, their families, and their generations to come. That is why I started the Law Office of Sovmya George. To help guide people through what can be difficult immigration processes and laws. I want them to know that I am here for them and they are not alone.

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