Big news is transforming how H-1B visa holders and F-1 students approach their careers. For the first time, the DHS has confirmed that H-1B founders can own 100% equity in their companies. This monumental change opens doors for entrepreneurial immigrants to pursue their dreams while complying with U.S. immigration laws. Alongside this, other significant updates modernize nonimmigrant programs to better align with the evolving workforce needs.
Key Takeaways
- Entrepreneurial Flexibility: H-1B holders can now build their own businesses while retaining compliance.
- Eligibility Updates: Founders need a solid business plan, degree-relevant roles, and proof of salary for at least three years.
- Cost Overview: Filing fees range from $2,000 to $11,000 depending on legal assistance.
- H-4 EAD Benefit: Spouses of H-1B holders can work if the principal applicant’s I-140 is approved.
- F-1 Flexibility: New rules enhance opportunities for F-1 students transitioning into the workforce.
- The Catch: The lottery system and specific compliance requirements still apply.
Context
The H-1B program has long been a cornerstone for skilled immigrant workers in the U.S. However, it’s also faced criticism for being rigid, especially for those aspiring to become entrepreneurs. Historically, H-1B holders needed to work for established employers, leaving little room for starting their own ventures. Meanwhile, the F-1 program was primarily academic-focused, limiting post-graduation opportunities. With the DHS’s recent updates, these programs are finally catching up with modern realities, enabling greater flexibility for immigrants to contribute to the economy. For more details, refer to the official DHS announcement: Federal Register – Modernizing H-1B Requirements and Other Updates.
H-1B and the Rise of Immigrant Entrepreneurs
Entrepreneurship has long been synonymous with the American Dream, but for H-1B holders, the path was riddled with challenges. Now, DHS has confirmed that founders can own up to 100% equity in their companies. The conditions are straightforward—a legitimate business plan, proof of ability to pay wages, and a role aligned with the applicant’s degree. These changes empower immigrants to chase their entrepreneurial ambitions without sacrificing visa compliance.
The H-1B program now supports immigrant entrepreneurs, allowing them to own businesses and create jobs while meeting compliance standards.
What This Means for F-1 Students?
F-1 students have often struggled with limited options for staying in the U.S. after graduation. The updated rules provide greater flexibility, allowing students to pursue career opportunities more effectively. These changes make it easier to bridge the gap between academic studies and long-term career goals, making the U.S. an even more attractive destination for international talent.
New flexibility for F-1 students opens pathways to seamless transitions into the workforce.
Costs and Compliance for H-1B Entrepreneurs
While the new rules offer exciting opportunities, founders must understand specific costs and compliance requirements. Incorporation fees start at $500, while H-1B filing can cost around $2,000 to $11,000, depending on whether premium processing and legal assistance are required. Employers—even if they are the founders themselves—must establish their ability to pay wages and set up a governance structure where they can be “fireable” to maintain compliance.
Starting a business on an H-1B comes with financial and regulatory responsibilities.
The Role of Legal Aid and Immigration Attorneys
Immigration laws are complex, and even minor errors can jeopardize an applicant’s status. Legal aid is crucial for managing incorporation, filing, and compliance requirements. Immigration attorneys provide the expertise needed to create business structures, draft contracts, and handle filings to align with DHS rules. Their guidance is particularly valuable for avoiding pitfalls and ensuring long-term success.
Professional legal guidance ensures compliance and maximizes opportunities for entrepreneurs and workers.
Broader Impacts on the U.S. Economy
Nearly half of U.S. unicorn startups have immigrant founders. By modernizing H-1B and F-1 requirements, the DHS is creating opportunities for more entrepreneurs to thrive. These changes can lead to job creation, technological advancements, and a more robust economy, cementing the U.S.’s position as a global leader in innovation.
Supporting immigrant entrepreneurship has far-reaching benefits for economic growth and innovation.
Conclusion
The DHS’s updates to H-1B and F-1 programs mark a pivotal moment for skilled immigrants. By allowing H-1B holders to own businesses and enhancing F-1 flexibility, these changes embrace the dynamic nature of today’s workforce. While challenges like the H-1B lottery remain, the opportunities for entrepreneurs and workers have significantly expanded. For those understanding these new rules, consulting with an experienced immigration attorney is highly recommended. For more details on these updates, refer to the official announcement: Federal Register – Modernizing H-1B Requirements and Other Updates.
Frequently Asked Questions (FAQs)
Can I start a business on an H-1B visa?
Yes, the DHS has confirmed that H-1B holders can start their own businesses, provided they meet specific compliance requirements.
Does my company need to sponsor my H-1B?
Yes, even if you own the company, it must sponsor your H-1B and act as your employer.
What are the costs of filing for an H-1B as a founder?
Costs include $500 for incorporation, $2,000 for filing, $2,500 for premium processing, and legal fees ranging from $1,500 to $8,000.
Can F-1 students transition to an H-1B through their startup?
Yes, if the company sponsors their H-1B and meets eligibility criteria.
Do I need a lawyer to file for an H-1B as a founder?
While not mandatory, legal assistance is highly recommended to ensure compliance with DHS regulations.
Can my spouse work if I’m on an H-1B visa?
Yes, your spouse can work if you have an approved I-140 and they apply for an H-4 EAD.
Authors: Jonathan Wasden & Justin Rivera, Immigration Attorneys