Can I Start a Business on an H-1B Visa in Texas? What You Should Know

In this article, you can discover…

• Whether you can legally start a business on an H-1B visa.
• What happens to your immigration status if your H-1B job is terminated.
• Why coordination and planning are crucial for H-1B entrepreneurs.

Is It Legal To Start Or Own A Business While On An H-1B Visa In Texas?

Yes, it is legal to start or own a business of your own while on an H-1B visa. There are no laws, policies, or regulations that prohibit foreign ownership.

Having said that, because your H-1B visa is tied directly to your employer, you can not work in the business that you create or own. You can manage daily operations, sign contracts, handle payroll, go over the topline numbers, and make hiring and firing decisions.

But it’s also important not to slide into the kinds of activities that might run afoul of the terms and conditions of your H-1B. For this reason, having the guidance of an immigration attorney as an H1-B business owner is crucial.

Must Business Ownership Or Self-Employment Be Disclosed To The USCIS While On H-1B Status?

There is no standalone ownership disclosure form that needs to be filled out, but it is still important to be transparent with the USCIS.
For example, when you file an amendment or an extension to your H1-B, or should you switch gears from an H1-B to a family visa, it’s important to make sure that you list your business ownership on these forms.

Attorney Ricardo Ramirez is a knowledgeable, skilled visa and immigration attorney serving Texas. Since 2011, he’s helped clients just like you start businesses on an H1-B with care, astute planning, and an eye on their success and compliance.

Have questions, or in need of legal representation? Reach out to R. Ramirez Attorneys and Counselors for an initial consultation today.

Can Earning Income From A Business Affect My H-1B Visa Compliance Or Renewal?

Yes, earning income from a business could potentially impact your H1-B visa compliance. This is a very slippery slope, and there are very nuanced definitions of what constitutes “work” and how “passive” vs. “active” income is defined. In a word, if you are deriving active income from your business while you’re on an H1-B visa, that could be considered unauthorized employment.

If you’re taking a salary, management pay, or consulting fees from your business, that could potentially be running out of bounds of what’s permitted by your H-1B. But if you generate income in a passive sense, which could be through dividends, stock growth, investment income, or ownership draws, that type of earning is generally permitted.

Basically, the USCIS will look at whether or not there’s sufficient distinction between working in your company vs. working on it through investment, control, and direction.

What Happens To My Immigration Status If My Primary H-1B Employer Terminates My Job?

If your primary H-1B employer terminates your job, you have a 60-day grace period (or until your most recent I-94 expires, whichever comes first) to figure out what your next step is going to be. For example, you may be able to transfer to another H-1B or change statuses.
If you have no other options, whether you’re here on an H-1B or an F1, you have 60 days to wind up your affairs and prepare to leave the

United States. If you stay in the country outside of that 60-day grace period, you are now “unlawfully present”, which can have negative long-term legal and immigration consequences.

Why Is Coordinated Legal And Business Planning Essential For H-1B Entrepreneurs?

The biggest value of coordinated legal and business planning is that it allows you to create a strategy to conserve your status while advancing your interests in ways that don’t threaten that status. Meeting with an immigration attorney can also give you an idea of what the timing will be for those processes, the possible risks that could arise, and the types of documentation needed.

An initial consultation with an immigration attorney can uncover a lot of blind spots, give you some helpful insights as to how your decisions are going to play out in the long term, and determine how viable your plans are.

Still Have Questions? Ready To Get Started?

For more information on starting a business on an H-1B visa in Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (956) 247-0068 today.