The H-1B visa has transformed from a corporate sponsorship pathway into a legitimate option for startup founders to build businesses in the United States. Following the January 17, 2025 H-1B Modernization Final Rule, entrepreneurs with majority ownership can now self-sponsor through their companies—a regulatory shift that removes previous barriers requiring external board control. For founders ready to pursue this pathway, Alma's startup immigration plan provides the legal expertise and guided workflows needed to structure compliant petitions with a guaranteed 2-week document turnaround.
The H-1B program underwent its most significant update in over a decade when DHS implemented the modernization rule. This change explicitly codified that beneficiaries owning more than 50% of a company (or holding majority voting rights) can qualify for H-1B status without the external control mechanisms previously demanded by USCIS.
Before 2025, entrepreneurs faced a fundamental contradiction: H-1B requires an employer-employee relationship, yet startup founders typically control their own companies. USCIS previously demanded external oversight structures—independent boards with hire/fire authority—to establish that the company (not the founder) maintained control over employment decisions.
The new rule eliminates this requirement. Instead, adjudicators focus on three factors:
Entrepreneurs must understand the specific limitations that distinguish beneficiary-owner petitions:
The annual H-1B cap of 85,000 visas (65,000 general category plus 20,000 for U.S. master's degree holders) creates intense competition that entrepreneurs must strategically plan around.
Understanding cap categories is critical for timing your startup launch:
The FY 2025 cycle saw approximately 442,000 unique beneficiaries register for 85,000 slots—an initial selection rate of approximately 26%, reaching 29% when including second-round selections. This reality makes cap-exempt strategies invaluable for entrepreneurs and founders who cannot afford to wait for lottery luck.
Organizations like Global Detroit actively support immigrant founders by leveraging cap-exempt status. This model allows entrepreneurs to maintain work authorization through a qualifying employer while building their startups—bypassing the lottery entirely.
Key lottery timeline milestones:
The immigration landscape remains volatile heading into 2026. Entrepreneurs must track policy developments that could fundamentally alter H-1B accessibility.
The Trump administration implemented a $100,000 one-time supplemental fee for new H-1B petitions effective September 21, 2025, under Presidential Proclamation 10973. This fee applies to initial H-1B petitions for beneficiaries outside the U.S. who lack valid H-1B status. Immigration attorney Sophie Alcorn characterized this as "an insurmountable founder tax", warning it could stop "the next Eric Yuan of Zoom or Jensen Huang of Nvidia before they can even start."
Additional finalized changes include:
Given policy uncertainty, entrepreneurs should consider:
Startup founders face unique cost pressures that traditional H-1B employers don't encounter. Understanding the full financial picture is essential before committing to this pathway.
Standard costs for entrepreneurial H-1B petitions include:
Alma's transparent pricing offers H-1B Cap/Cap-Exempt petitions at $3,500 and lottery registration at $500, with administrative charges included—providing predictable costs that help founders budget effectively during the critical early-stage fundraising period.
The prevailing wage requirement creates the biggest practical hurdle for bootstrapped startups. Equity or "sweat equity" alone does not meet H-1B requirements—companies must demonstrate financial capacity through:
Given lottery odds and policy uncertainty, savvy founders maintain multiple immigration pathways. 44% of U.S. unicorn founders are foreign-born, many of whom utilized alternatives to H-1B.
The O-1A visa for extraordinary ability offers significant advantages for qualifying entrepreneurs:
Alma's O-1A visa service combines attorney expertise with technology-enabled workflows to help founders build compelling extraordinary ability cases—with 99%+ approval rates and guaranteed 2-week document turnaround. For entrepreneurs with the right profile, O-1A completely sidesteps H-1B lottery uncertainty.
E-2 Treaty Investor visas provide another option for founders from approximately 80 treaty countries:
Building toward permanent residency provides long-term security:
Alma's EB-2 NIW service helps founders build self-petitioned green card cases while operating their startups—avoiding employer dependency and creating a direct path to permanent residency. As Unshackled Ventures founding partner Manan Mehta noted, policy challenges "create a strategic opening" for startups to leverage merit-based options that "align perfectly with what startups need: exceptional talent solving hard problems."
Proper business formation establishes the foundation for a successful beneficiary-owner petition. USCIS examines whether your company operates as a legitimate entity separate from you as an individual.
Required business formation elements:
Your business plan serves as central evidence that the company is bona fide and requires your specialty occupation role. Key elements include:
The complexity of entrepreneur H-1B petitions demands both specialized legal knowledge and efficient case management systems. Working with experienced immigration counsel significantly impacts outcomes—FY 2025 denial rates were 2.8% for initial employment and 1.9% for continuing employment when petitions are properly prepared.
Immigration attorney David Santiago advises that "an H-1B beneficiary-owner visa could be a great alternative for entrepreneurs that have recently graduated or just started their company." He notes founders can "utilize this time under their H-1B status to either profile build for an O-1 visa or even an employment-based visa" for eventual permanent residency.
Alma combines attorney expertise with technology-enabled workflows to deliver:
Unlike traditional law firms where cases languish for months, Alma's guided workflows and automation ensure entrepreneurs receive draft petitions in 14 days—allowing you to focus on building your company rather than chasing attorneys for updates.
The 2025 final rule codified USCIS's Administrative Site Visit and Verification Program authority, making compliance more critical than ever for entrepreneur petitions.
Immigration attorney Adena Bowman warns that "USCIS reinforces site visit authority—founders should expect an officer to visit the listed office location" and confirm work matches the petition.
Site visit preparedness requires:
For companies managing multiple immigration matters, Alma's business immigration platform provides:
Entrepreneurs building teams should consider how immigration infrastructure scales. What works for a solo founder petition may not support growth to 10, 50, or 100+ sponsored employees. Alma's platform grows with your company—from your first H-1B through scaling to enterprise immigration management.
Yes, but with important limitations. While maintaining other valid status (F-1 OPT, current H-1B, etc.), you can conduct "passive" startup activities including market research, investor meetings, business incorporation, and strategic planning. Active employment—receiving salary, performing daily operations as an employee—requires valid work authorization. Many founders maintain current employment while building startup foundations, then file H-1B transfer petitions once selected in the lottery.
If your company ceases operations, your H-1B status becomes invalid since it's tied to specific employment with that employer. You would have a 60-day grace period to either find a new H-1B sponsor, change to another valid status, or depart the United States. This risk underscores why many immigration attorneys recommend building toward permanent residency (EB-1A, EB-2 NIW) as quickly as possible—green card status isn't dependent on any single employer relationship. Alma's immigration attorneys can help you develop a multi-pathway strategy that protects your status even if your startup pivots or faces challenges.
USCIS looks beyond titles to actual job duties. Your petition should detail specific technical responsibilities—software architecture decisions, product development leadership, data science implementation—that require your degree. General management tasks don't qualify. Entrepreneurs with technical backgrounds typically structure roles like "Founder & CTO" or "CEO & Chief Engineer" with duty descriptions emphasizing the 51%+ of time spent on specialty occupation work rather than administrative business ownership tasks. Alma's attorneys specialize in crafting duty descriptions that satisfy USCIS requirements while accurately reflecting founder responsibilities.
Having investors or co-founders can actually strengthen your petition by demonstrating legitimate business operations and external validation. What matters is whether you own more than 50% or have majority voting control. If outside investment dilutes your ownership below 50%, standard employer-employee H-1B requirements may apply instead of the beneficiary-owner provisions—potentially simplifying the process since you'd no longer need to prove the company can exercise control over a majority owner.
H-4 dependent spouses can apply for Employment Authorization Documents (EADs) once you've begun the green card process and have an approved I-140 petition, or if you're in H-1B status beyond the standard 6-year limit based on pending green card processing. Without meeting these conditions, H-4 dependents cannot work. This is another reason entrepreneurs often pursue concurrent O-1 or E-2 status—E-2 spouses automatically receive work authorization, and the pathway to green card (enabling H-4 EAD eligibility) may be faster through EB-1A for extraordinary ability entrepreneurs. Alma can help you evaluate which pathway provides the best family immigration solution for your specific situation.
