New here? Start at 6:02. In the next seven minutes, Raghavan explains the change to the “right to control” requirement and turns to the work a founder’s company needs to demonstrate.
I had these questions when I was starting my own company. Raghavan was my attorney. In this conversation, we work through the questions founders in our community were asking.
Recorded January 23, 2025. This conversation reflects the rules and discussion at that time. Check current requirements with your attorney before acting.
Find your question
* 6:02 · What changed about ownership and “right to control”?
* 17:19 · What does a real job offer look like in a new company?
* 19:54 · How does Raghavan think about funding and paying yourself?
* 22:45 · How do the initial approval and extension periods work?
* 25:29 · What questions come up when keeping a job and considering concurrent H-1B employment?
* 1:02:57 · How do job requirements affect wage levels?
Use the timestamps in the player, or read the summary below. Write down the one question you need answered for your own business.
Summary of the January 2025 conversation
In January 2025, 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, 2025. 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, 2025
* 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
Keep going
For our own founder story, watch my early conversation with my cofounder Ercan. Then hear Achal’s experience.
Bring your questions to the free WhatsApp community. If you want to work through your company setup with a small group, take a look inside Launch Club.
Date correction: the H-1B modernization rule took effect on January 17, 2025. The original summary said 2024. See the USCIS guide.
This post summarizes our recent community discussion with immigration attorney Raghavan Nagarajan. While we strive for accuracy, immigration regulations can be complex and subject to change. Always consult qualified legal counsel for your specific situation.
I share my experience openly but do not provide legal advice - I’m happy to connect you with immigration attorneys for specific legal guidance.
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
