Hello H1B Founders,

I'm Manisha Puppala, your host. Thanks for tuning in, sharing your questions, and being part of the H1B Founders community.

This episode was a nut-shell breaker for you, for me, and for many aspiring entrepreneurs who are thinking outside the box and breaking stereotypes. We often talk about the hustle of building something on an H1B, but rarely do we get clear answers on the legal “how” behind it.

That’s why I’m so grateful to have had Raghavan Nagarajan, Partner at Serotte Law, join us for this session with Sid. We dove deep into what’s legally possible, what’s risky, and what immigrant entrepreneurs can start doing now to secure their future.

Whether you’re just getting started or already running your own company, I think this episode will leave you with a lot of clarity and confidence.

Now let’s get into it 👇

🔗 Resources

To contact Raghavan and explore legal support, visit

As mentioned in the session, To book a 1:1 coaching session with Sid.

Here are some key takeaways from the episode on legal considerations for H1B entrepreneurs:

* Understanding H1B Flexibility: H1B visa holders can start their own businesses, but must navigate specific legal requirements, including obtaining work authorization through the H1B program.

* Risks and Responsibilities: Entrepreneurs face typical startup risks, with the added complexity of their immigration status being tied to their business success. Proper business structuring can mitigate personal liability.

* Policy Changes and Opportunities: Recent policy changes have made it easier for H1B holders to work for their own companies, eliminating the need for a board or external control over their work.

* Strategic Planning: Having a co-founder with a green card can simplify certain processes, and planning for visa transitions like O1 or EB1 can be beneficial for long-term residency goals.

* Practical Advice: Maintaining accurate records and understanding the implications of salary changes or business roles are crucial for compliance and successful entrepreneurship.

⏱️ Episode Breakdown

* Introduction and Welcome (0:00 - 5:00)

* Foundational Questions for H1B Founders (5:01 - 15:00)

* Policy Changes and Implications (15:01 - 25:00)

* Risks and Responsibilities (25:01 - 35:00)

* Interactive Q&A Session (35:01 - 50:00)

* Visa Transitions and Long-term Planning (50:01 - 1:05:00)

* Closing Remarks and Resources (1:05:01 - End)

Thanks again for being part of this conversation.

If the episode sparked questions or you’d like to see more content like this, feel free to drop a comment below, I’d love to hear from you!

Until next time, Manisha Puppala.

#H1B #Entrepreneurship #ImmigrationLaw

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit community.h1bfounders.com

Last week, I hosted an in-depth discussion with Raghavan Nagarajan, Partner at Serotte Law, to break down the significant changes to H-1B regulations that went into effect on January 17, 2024. These updates have major implications for immigrant founders, particularly regarding company ownership and employment relationships.

Here's a comprehensive breakdown of the key changes and what they mean for founders:

Major Changes in the New Rules

1. Removal of "Right to Control" Requirements

* The biggest change: USCIS has eliminated the requirement to demonstrate employer's right to control for H-1B founders

* You can now own 100% of your company while maintaining H-1B status

* No need for complex board structures solely to establish control

2. 18-Month Initial Approval Period

* H-1B petitions for founders with majority ownership will be approved for 18 months initially

* Can be extended for another 18 months

* After second extension, possibility of getting full 3-year approvals

3. Focus on "Bona Fide Job Offer"

* Instead of control requirements, USCIS now emphasizes having a legitimate job offer

* Must show that >50% of time will be spent on specialty occupation duties

* Remaining time can be spent on business operations/ownership duties

💡 Key Requirements for H-1B Founder Petitions

Proving a Bona Fide Job Offer

* Business plan showing clear need for the position

* Evidence of work to be performed (product roadmap, project plans, etc.)

* No specific revenue requirements, but should demonstrate viability

* Can include pitch decks, market analysis, and development timelines

Financial Requirements

* No strict minimum bank balance requirement

* Recommended: 6-18 months of salary coverage

* Various funding sources acceptable (personal funds, investment, revenue)

* Must meet prevailing wage requirements for the position

Part-Time Options

* Can maintain full-time H-1B with current employer while starting company

* Part-time H-1B (15-20 hours/week) possible for your startup

* Must still pay proportional prevailing wage for part-time work

* Keep detailed time tracking records

Practical Tips for Founders

Documentation Best Practices

* Maintain clear separation between personal and business finances

* Use time-tracking software with location data

* Keep detailed meeting minutes and corporate records

* Document all major business decisions

Salary and Compensation

* Must meet prevailing wage requirements for actual work performed

* Can receive additional compensation through profit distributions

* Be prepared to demonstrate ability to pay stated wages

* Consider part-time arrangements to reduce initial wage requirements

Job Classifications

* Choose job categories based on actual day-to-day work

* Don't fixate on CEO/CTO titles if duties align with other categories

* Understand wage levels based on job requirements, not personal qualifications

* Be realistic about minimum position requirements

Important Considerations

Timing and Political Context

* Rules effective as of January 17, 2024

* Changes would require formal process to reverse

* Future administration may interpret rules differently

* Consider maintaining traditional corporate structures as backup

Risk Management

* Document everything contemporaneously

* Consider maintaining board structure even if not strictly required

* Keep clear records of all work performed and payments made

* Ensure compliance with both immigration and corporate law

Looking Ahead & Getting Support

While these changes significantly improve the landscape for immigrant founders, navigating both immigration requirements and business building requires careful planning and support. Our growing community is here to help:

Community Resources

* WhatsApp Group: 800+ aspiring immigrant founders sharing experiences and insights

* H1B Founders Newsletter: Join 500+ subscribers receiving regular updates and analysis

* Monthly Community Calls: Deep dives into immigration strategies and founder journeys

1:1 Guidance

Having gone through this journey myself - from F1 to H1B to founding a profitable SaaS business while navigating immigration - I've opened up limited coaching hours for 2025. During these sessions, we can:

* Map out your specific founder journey

* Review business formation and growth strategies

* Navigate immigration pathways and transitions

* Build a roadmap aligned with your goals

Learn more about coaching sessions

Note: Financial assistance is available for students and those facing constraints - reach out via LinkedIn to discuss options.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit community.h1bfounders.com

In this conversation, Sid Sarasvati shares his journey from being an international student to becoming a successful entrepreneur in the U.S. He discusses the complexities of navigating the H1B visa process, the challenges faced by founders on work visas, and the importance of understanding legal compliance when starting a business. Co-founder Ercan Özer joins to share his perspective on building a company across borders and the dynamics of their partnership. The discussion also covers various visa options, the significance of having a solid business plan, and strategies for generating revenue in a competitive market.

Check out https://renovateai.app for the home renovation AI business we bootstrapped to profitability in 1 year

Business tools:

* Mercury Referral (get $250) - https://mercury.com/r/trial-and-error

* Gusto Referral (get $100) -

Takeaways

* Sid's journey from F1 to self-sponsoring his H1B.

* The importance of sharing experiences and information among founders.

* Visa challenges can be navigated with the right knowledge.

* Founding a company while on an H1B is legal and possible.

* Co-founding with someone who can bet on themselves is crucial.

* Understanding the legal requirements for H1B sponsorship is essential.

* Distribution is a key challenge for consumer-focused businesses.

* Building a business entity is possible from anywhere in the world.

* Having a solid business plan is necessary for H1B applications.

* The connection between co-founders develops organically over time.

Chapters

00:00 Sponsoring My Own H1B: Challenges and Misconceptions

02:49 Navigating the EB2 and EB3 Backlog as an H1B Visa Holder

04:46 Starting a Company on an H1B Visa: Compliance and Payroll Considerations

08:56 Exploring Alternative Visa Options: The O1 Visa

12:29 Recommended HR Tool for Payroll and Compliance: Gusto

12:35 My Personal Journey: Filing for EB2, Starting a Company, and Obtaining a Green Card

13:52 Navigating the EAD and Advanced Parole Process

14:17 Qualifying Businesses for Startup Visas

14:59 Requirements for Filing an H1B through a Company

16:42 Challenges of Self-Sponsoring an H1B

25:29 The Importance of Finding a Co-Founder

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit community.h1bfounders.com

In this conversation, Sid Sarasvati shares his extensive journey through the U.S. immigration system, detailing his experiences from being an F1 student to navigating H1B visas and ultimately achieving his green card. He discusses the challenges faced by international professionals, the importance of entrepreneurship, and the nuances of visa sponsorship. Sid also provides insights into starting a business while on a visa and answers various questions from attendees about immigration processes and strategies for success.

Takeaways

* Sid's journey began as an aspiring founder in the U.S.

* Navigating the immigration system requires understanding various visa types.

* Entrepreneurship can be a viable path for visa holders.

* The green card process is complex and often lengthy.

* Starting a business on an H1B is possible with the right structure.

* Having a board of directors can help meet H1B requirements.

* Salary requirements for H1B vary by location and role.

* It's essential to seek multiple opinions when choosing an immigration attorney.

* The O1 visa is an alternative for those with extraordinary abilities.

* Community support is crucial for navigating immigration challenges.

Chapters

00:00 Navigating the U.S. Immigration Journey

10:09 From Employee to Entrepreneur: Sid's Transition

25:04 The H1B Visa and Starting Your Own Company

43:54 Q&A: Insights and Experiences

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit community.h1bfounders.com