Can an H1B visa holder start a business in US or own some percentage of equity in a US based startup?

Question

Can an H1B visa holder start a business in US or own some percentage of equity in a US based startup?

Anonymous Apr 11, 2013 5 views 3 answers

To add more details: the startup team consists of couple of US citizens and they have already filled an S-Corp. I am on H1B visa working for a largeco. I want to know if I can own some percentage of equity in exchange to few hours of technical work per week as a moonlighting project.

J Ferrari · Accepted Answer · 2026-06-15T10:43:01+00:00

J Ferrari

J Ferrari · Jun 15, 2026

No. That would be unauthorized employment.

0 upvotes

Mirka Nakovski · Accepted Answer · 2026-06-15T10:43:01+00:00

I agree that this would be unauthorized employment. In addition, shareholders of an S corporation must be either US citizens or permanent residents. With your current status, you may not become a shareholder of an S corporation.

Tripti Sharma · Accepted Answer · 2026-06-15T10:43:01+00:00

Passive investment should be OK. Active involvement like holding a position of an officer and performing tasks is unauthorized employment.

Can an H1B visa holder start a business in US or own some percentage of equity in a US based startup?

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