The Startup Guide to H-1B Visas for Founders & Teams
- Sponsoring an H-1B visa generally requires your startup to enter a candidate into a lottery held every March.
- Startup founders can sponsor themselves if they can prove that they will spend most of their daily work time on speciality work (not administrative work), and beyond the work of owning or running a business.
- H-1B workers must receive a standard cash salary that matches local market rates, meaning your startup can’t pay them using equity alone.
Startup founders can legally act as both the majority owner of a company and as a worker who gets an H-1B visa to work for that company. You must show that you spend the majority of your daily hours doing technical tasks for your business rather than just running the company.
In the past, the government blocked entrepreneurs from doing this type of H-1B self-sponsorship. But a federal rule, effective Jan. 17, 2025, removed that barrier.
| 🧑⚖️ This article is informed by real-world insights from Manifest Law’s practicing immigration attorneys. It reflects not only what the law says, but also how USCIS officers are currently applying that law, and where risks are increasing. Check out our editorial policy for more info. |
How does the H-1B visa work?
The H-1B visa is a temporary U.S. work permit that allows U.S. companies to hire foreign professionals. To qualify, the position must be a “specialty occupation,” meaning the job is complex enough to require a bachelor’s degree or higher in a specific, related field.
The U.S. government sets a fixed annual limit of 85,000 new H-1B visas each year. Out of this, 20,000 visas are set aside specifically for individuals who hold a master’s degree or higher from a U.S. college.
Because demand from businesses typically exceeds this limit, the government runs a wage-weighted lottery every March to select candidates. Your startup must register candidates ahead of time. If a candidate is selected in the lottery, your company can file a full application.
How did the new rules change H-1B visas for startup founders?
The Department of Homeland Security changed H-1B requirements in January 2025, so owning more than 50% of your business no longer blocks you from applying for an H-1B visa.
Foreign entrepreneurs used to face a massive hurdle when trying to get an H-1B visa. The government required every applicant to prove that the company had a manager who supervised their daily work and had the authority to hire, oversee, or fire them. This arrangement is referred to as an employer-employee relationship. Many startup founders who owned the majority of their company couldn’t easily show that someone else was managing them.
The new rules explicitly permit startup founders to act as both the owner of a company and an H-1B worker. But this change doesn’t mean the application is simple. The H-1B petition must still be filed by the company, on behalf of a visa beneficiary (the founder).
What does your startup need to sponsor your visa?
To self-sponsor an H-1B visa, the government requires proof that your business is real, active, and able to pay your salary. Before you apply, take the following steps:
- You must form a legal company. For most tech founders, this means setting up a U.S. C-Corporation or an LLC. Once your business is registered with the state, you must apply for a Federal Employer Identification Number (FEIN) from the IRS. This tax ID number is how the government tracks your company’s official filings.
- You must set up a dedicated business bank account. You can’t mix personal money with company funds. Your startup needs a clear financial history to show it can afford to pay your wages.
- Your company must have a physical work location. The government can perform an unannounced site visit to verify that visa holders are working where they claim. Because of these surprise checks, you must typically list a physical office space, a commercial building, or a verified home office address where an officer can visit.
How long does the H-1B last for startup founders?
When a standard employee gets an H-1B visa, the government usually approves it for three years. If you own the majority of your startup, your initial visa will likely have an 18-month maximum limit. You can apply for one extension, which lasts for another 18 months.
Why do founders get shorter validity dates than regular workers?
The government uses this shorter timeline as a program integrity checkpoint. Because you’re sponsoring yourself, officials want to review your petition more frequently to deter potential abuse and to confirm that you’re still spending the majority of your working time employed in a specialty occupation at a real company.
This rule means you must plan your business timeline carefully. Because you have to renew your visa twice as often as a regular employee, you need to budget extra time and money for legal fees and government paperwork.
| 🔍 Unsure if H-1B is right for you? You don’t have to figure it out alone. At Manifest Law, our immigration attorneys build visa strategies around you—your achievements, your goals, and your vision for life in the U.S. We’ll help you chart the smartest path forward, not just file the paperwork. Learn more about working with our experienced H-1B visa lawyers. |
Can you get paid in equity or do you need a cash salary?
The Department of Labor requires all H-1B workers to receive a regular cash salary, processed through standard W-2 payroll with normal taxes withheld. While many startup founders prefer to preserve their cash by paying themselves in company stock or equity, this generally isn’t allowed when you sponsor yourself for an H-1B visa.
Minimum H-1B salaries
The government also sets a minimum amount you must be paid, which is called the prevailing wage. It’s calculated using local wage data for your specific job and city. For example, a software engineer in a high-cost area like San Francisco will have a higher prevailing wage than an engineer in a lower-cost region.
This requirement can be a hurdle for early-stage companies. Your startup must have active revenue, cash grants, or investor funding to pay a cash salary.
Calculating your role’s prevailing wage
Before you file your visa petition, you can look up the salary requirements for your specific job and city using a government database called the OFLC Wage Search tool. You must match your startup role to a standardized government job code and select the right skill/responsibility level.
Choosing the wrong code can lead to a visa denial, so many founders work with an experienced corporate immigration attorney to look up these figures.
| 💡 Calculate the prevailing wage for your job: Manifest Law’s H-1B prevailing wage calculator allows you to look up the minimum salary for your job and location. |
How do you sponsor an employee for your startup?
Sponsoring a regular employee follows a different legal process than self-sponsorship. Your startup must show it has a standard employer-employee relationship with the worker. This means your business has the authority to direct, supervise, and pay the employee.
The process begins by defining the job role. The position must be a speciality occupation that requires at least a bachelor’s degree. You must also prove (through a labor condition application) that hiring a foreign professional will not negatively impact the wage or working conditions of local U.S. workers.
Initial H-1B visas can be approved for a full three years for standard employees instead of the shorter 18-month timeline given to founders. Your company is responsible for all government filing fees and attorney fees associated with the H-1B petition. The law prohibits passing these costs to the worker.
What if you miss out on the H-1B visa lottery?
If you aren’t selected in the H-1B lottery, there are multiple alternative visa options. Two common options are the O-1A visa or the EB-2 visa. Both options have no lottery and allow you to sponsor yourself.
O-1A visas
The O-1A is one of the most popular alternatives to the H-1B. It’s designed for individuals with extraordinary ability in science, business, or technology. If you have a strong professional track record, such as judging industry events, winning awards, or raising venture capital, this visa could be an option.
EB-2 NIW visas
The EB-2 National Interest Waiver (NIW) is another path to consider. This option is an immigrant visa, meaning it leads to a permanent Green Card rather than temporary work authorization. To qualify, you must show that your startup’s technology or business model will materially benefit the U.S. economy or a specific industry.
Working with a law firm focused on corporate immigration can help you evaluate your timeline and keep your startup moving forward.
Building a path for your startup
The regulatory shift allowing H-1B self-sponsorship provides startup founders an opportunity to build in the U.S. But the 18-month validity cap, mandatory cash salary, and other business requirements mean that a successful filing depends on proactive planning and precise documentation.
The attorneys at Manifest Law can help navigate these timelines, map out your prevailing wage strategies, or address backup pathways like the O-1A or EB-2 NIW.
👉 Request a consultation with Manifest Law’s experienced immigration lawyers now.
FAQs about H-1B sponsorship
Do I need a college degree to get a startup H-1B visa?
To qualify for an H-1B, you generally need a bachelor’s degree or higher in a field that relates to your daily job duties at the startup. If you don’t have a degree, you must show equivalent professional work experience.
How much money does my startup need in the bank to sponsor me?
There’s no fixed bank balance required, but your company must have enough money to pay you a salary that meets the prevailing wage rules. You can’t pay yourself in equity or stock options to meet this requirement.
What’s the difference between a founder H-1B and a regular employee H-1B?
The biggest difference between H-1B visas for founders and regular employees is how long the visa lasts. A regular worker can get an initial visa for three years, while a business owner is typically limited to an initial 18-month maximum.
