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Ask HN: Starting a startup on an F1 visa

6 points by winter_blue ↗ HN
I'm a student on an F1 visa in the Unites States.

I'm considering starting a startup (as the sole founder) and/or becoming an independent contractor. But F1 visa holders are prohibited from working anywhere in the United States except for an internship or on an on-campus job.

I was considering forming a corporation and getting paid through dividends, but my international student advisor just told me that any form of work, even unpaid internships are illegal for F1 students and could result in deportation and a 10-year ban on reentry.

So is there any legal way in which I can start a startup or become an independent contractor? If any of you know lawyers or website where I can look for legal concerning this matter, please point me to them. I'm currently located in NYC.

Thank you.

7 comments

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woodrow
IANAL, nor am I an expert in this area, but I'm also an international student and have been thinking about these kinds of things.

While still a student, options for working are pretty limited. You could apply for what USICE calls "Curricular Practical Training" (CPT) or "Optional Practical Training" (OPT) -- you can read more here http://en.wikipedia.org/wiki/Optional_Practical_Training or on the USICE website. Success of this route all depends on the approval of your Designated School Official and compliance with the details of the law.

Further complicating matters (even if you consider applying for an H-1B after you're done) is the issue of control of employment. Lawyers I've talked to suggest that the immigration officers look to see that you don't have control over your own employment. While this isn't a problem when you work for a big company, it's definitely a problem if you're a sole founder/self-employed. I guess if you take this literally, then you can legally own at most 50%-1 shares of the company you work for.

In the end, this is all about convincing your school officials and/or US immigration officers that you meet the letter and the spirit of the law. Sadly, good immigration lawyers are probably the best equipped to help you make the case for yourself. I agree that this isn't an ideal state of affairs, which has prompted efforts such as http://startupvisa.com/.

ashitvora
Please check DHS's website. You can always work UNPAID. You can not accept any sort of compensation on F1 visa if you dont have approval from DHS.

I was myself on F1 and I know many students working unpaid for experience.

eduardo_f
That's bad advice. You CANNOT work unpaid. If you don't have a work permit you can't do any type of activity that might be considered _work_ by the DHS, even if you are not compensated. Work is defined as an activity that usually carries compensation.
eduardo_f
I'm on an F1 visa and have been working as the sole founder of my startup since May. You have to apply for OPT and choose the "self-employed business owner" option.

The biggest problem is that OPT is valid for one year, plus 17 months if you're coming from a technical (STEM: Science, Technology, Engineering and Mathematics) degree. So you have about 2.5 years to do something so big that you can transition to something else (EB-5, startup visa?).

Feel free to ask me more, I did lots of research in this area before quitting my job and starting to work full-time for my own business.

kunjaan
I hope you don't mind me asking some.

Can you employ others too?

Have you researched fundings and VCs and what they think of F1 visas?

Did you start while you were at school?

Have you heard of any success stories?

What is your backup plan? Have you thought of what you'll do if it doesn't work out? When do you think you will bail out ?

eduardo_f
1) Yes, of course. 2) No, but my guess is that if you have a good product, the immigration status is less important. 3) Yes. 4) I will probably go back to my home country and continue working there.