What to Know Wednesday

How Your Immigration Status Affects Your Ability to Start a Business in the U.S.

Many foreign nationals in the U.S. are highly skilled, entrepreneurial, and full of great ideas — but starting a business while on a visa is not as simple as forming an LLC.  Your work visa may limit or outright prohibit certain types of entrepreneurial activity.

Here’s what you need to know:

1.  Most Work Visas Tie You to One Employer

If you're on an H-1B, L-1, O-1, or similar employment-based visa, your authorization to work is generally restricted to the sponsoring employer.  That means:

• You cannot freelance or consult on the side
• You cannot actively manage or operate your own company without specific authorization
• Passive investment (owning shares but not working for the company) is sometimes allowed — but must be structured carefully

2.  “Working for Yourself” Is a Legal Minefield

You might think:  “I’ll just form an LLC and work for my own company.”  But USCIS sees through that quickly.  To sponsor yourself on an H-1B, for example, your company must show a true employer-employee relationship — with someone other than you having control over your employment (think: a board of directors or independent manager).

Without that separation, USCIS is likely to deny the petition.

3.  Violation of Work Restrictions = Status Violation

If you start a business while on a visa that doesn’t permit self-employment, you could be:

• Violating your status
• Jeopardizing future immigration benefits
• At risk of denial in future petitions or green card filings

Even unpaid work or volunteering for your own company can be considered unauthorized employment if it benefits the business.

4.  Alternatives Exist — But Planning Is Key

If you’re serious about entrepreneurship, consider:

• Changing to a visa category that permits self-employment (like E-2 for certain investors)
• Having a U.S. citizen or green card holder run the business while you stay a passive investor
• Applying for an O-1 if your achievements support an entrepreneurial role
• Working toward a green card that allows unrestricted employment (EB-1, EB-2 NIW, etc.)

Each path has pros, cons, and timing considerations — and requires clear planning to stay compliant.

Dream Big — But Stay Within Legal Boundaries

Starting a business is an exciting idea, but if you're in the U.S. on a visa, immigration laws make it more complex than most people realize.  Before you register that LLC or launch a side project, get immigration counsel to protect both your vision and your status.

At the Law Office of Julia L. Stommes, we help foreign professionals navigate work visa limitations while exploring entrepreneurial pathways.

For tailored guidance, contact us at [email protected].

If you have questions about your visa status or if you are an employer exploring immigration options, we are here to help.  At the Law Office of Julia L. Stommes, we are committed to helping individuals and businesses navigate complex legal landscapes.
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The information provided in this blog is intended for general informational purposes only and should not be construed as legal advice.  To schedule a Consultation to discuss your legal immigration options, please email us at [email protected].