Can Company Owners Sponsor Themselves for an H-1B Visa Under the H-1B Entrepreneur Rules?

For years, entrepreneurs on H-1B status faced a difficult immigration problem: they wanted to become startup founders for their own companies but found it difficult to fit within the traditional H-1B employer-employee model. Federal regulations that took effect on January 17, 2025, now provide a clearer framework for founder-owned companies to petition for their founders.

The result is often called an “entrepreneur H-1B” or “founder H-1B.” It did not create a new visa category, as it remains an H-1B petition subject to the same core requirements that apply to other H-1B employers and workers, with additional rules for beneficiaries who control the petitioning business.

Who Is Considered a Beneficiary-Owner?

The special provisions apply when the H-1B beneficiary has a controlling interest in the petitioning organization. A controlling interest exists when the beneficiary owns more than 50 percent of the organization or holds majority voting rights.

This framework recognizes a practical business reality: a founder may simultaneously be an owner, a company leader, and an employee performing specialized professional work. A separately organized U.S. company may petition for its founder even when the founder owns most or all of the business, provided that they otherwise satisfy the H-1B requirements.

Founders with 50 percent or less ownership and without majority voting rights are not subject to the special beneficiary-owner provisions solely because they hold an ownership interest. Their petitions must nevertheless satisfy all ordinary H-1B requirements.

The Position Must Still Qualify as a Specialty Occupation

Founder status does not replace the specialty occupation requirement. The petitioning company must give a bona fide job offer for a position that requires the theoretical and practical application of highly specialized knowledge and at least a bachelor’s degree, or its equivalent, in a directly related specific specialty.

A founder’s title alone is not enough. Titles such as Chief Executive Officer, President, or Founder may describe the individual’s authority within the company, but USCIS will examine the work the person will actually perform. The petition should therefore identify concrete, specialized duties and explain why those duties normally require at least a bachelor’s degree, or its equivalent, in a directly related field.

Depending on the company, a founder may qualify through specialized positions such as a software engineer, data scientist, electrical engineer, research scientist, financial analyst, or another specialized professional. The key question is whether the offered job remains a genuine specialty occupation.

Most of the Founder’s Time Must Be Spent on Specialty Occupation Work

A beneficiary-owner may perform both specialized professional duties and activities related to owning and directing the business. However, the founder must spend a majority of their work time performing specialty occupation duties.

Permissible owner-related activities may include developing business plans, seeking financing, meeting with investors, negotiating contracts, recruiting employees, and overseeing the company’s growth. Limited incidental duties that naturally arise in operating a business may also be acceptable. However, these activities cannot become the founder’s primary duties if the company seeks H-1B classification for a specialty occupation position.

For example, an AI startup founder might spend 70 percent of their time designing machine-learning models and software architecture, 20 percent developing business strategy and meeting investors, and 10 percent recruiting technical employees and negotiating vendor agreements. That type of allocation may fit the beneficiary-owner framework because the founder’s specialized technical work remains the principal component of the position.

A petition will include a detailed duty breakdown, the percentage of time devoted to each responsibility, an explanation of the specialized knowledge required, and evidence showing that the business has a genuine need for the work.

Special 18-Month Validity Periods Apply

When the beneficiary has a controlling interest, USCIS may approve the initial petition for up to 18 months. The first extension is likewise limited to up to 18 months.

Later extensions are not subject to this special 18-month limitation and may generally be approved for the otherwise applicable H-1B validity period, assuming the company and beneficiary remain eligible. The rule does not limit every beneficiary-owner extension to 18 months.

The shorter initial periods give USCIS an earlier opportunity to confirm that the startup remains operational, that the specialty occupation position continues to exist, and that the company is complying with its wage and employment obligations.

Wage and LCA Requirements Still Apply

A beneficiary-owned company must comply with the same Department of Labor requirements that apply to other H-1B employers. This includes obtaining a certified Labor Condition Application (LCA) and paying at least the required wage for the occupation and area of intended employment.

The company must be prepared to pay the required wage beginning when the H-1B employment obligation starts. Equity, the possibility of future investment, or the founder’s willingness to defer compensation generally should not be treated as a substitute for compliance with H-1B wage obligations.

Key Planning Considerations for Founders

Entrepreneur H-1B cases are strongest when immigration planning is integrated with the company’s operational planning. Before filing, founders should consider whether the proposed position is truly degree-specific, whether more than half of the work will remain specialized, whether the company can document sufficient work and funding, and whether its corporate and immigration records accurately reflect the founder’s ownership and voting rights.

Founders should also plan ahead for the first extension. Because the initial approval may be limited to 18 months, the company should maintain organized records showing continued operations, payment of the required wage, progress on products or services, contracts or financing, hiring activity, and the founder’s ongoing performance of specialty occupation duties.

The Bottom Line

The H-1B entrepreneur rules offer a meaningful path for qualifying founders to pursue H-1B status through their own companies. Majority ownership is no longer, by itself, a barrier to an H-1B petition. At the same time, it is important that the position remains compliant with H-1B specialty occupation requirements.

The company must offer a bona fide specialty occupation position, the founder must spend most of their time performing specialized duties, and the petitioner must satisfy the applicable wage, LCA, evidentiary, and filing requirements. Because the analysis is highly fact-specific, and immigration rules and entry requirements can change, founders should obtain individualized advice before relying on this option.

This article is intended for general information purposes only and does not constitute legal advice. If you have specific questions about filing a founder H-1B petition, please contact our office at (312) 427-6163 or schedule a consultation online to discuss with one of our experienced immigration attorneys.