H-1B for Founding Engineers

Author

Pegah Karimbakhsh Asli

Reviewer

The Alma Team

Date Published

February 18, 2026

The H-1B visa has undergone a fundamental shift for startup founders. As of January 17, 2025, new USCIS regulations allow founding engineers to self-sponsor through their own companies—even with 50% or greater ownership—eliminating the employer-employee relationship barrier that previously blocked entrepreneurs from filing petitions through their startups. For founding engineers ready to build in the U.S., Alma's Startup Immigration Plan offers streamlined legal support with guaranteed 2-week document turnaround and industry-leading approval rates.

Key Takeaways

  • The January 2025 H-1B Modernization Rule removes the strict employer-employee relationship requirement, enabling founders with 100% ownership to self-sponsor.
  • Beneficiary-owners receive 18-month initial validity instead of the standard 3 years, requiring more frequent renewals.
  • The FY2025 lottery showed approximately 26% first-round selection odds (29% final rate after second round) following fraud crackdowns—better than the 15% first-round rate in FY2024.
  • Total first-year costs range from $12,225-$31,400 for large employers (26+ employees) or $10,225-$25,030 for small employers, including government fees, attorney costs, and business setup.
  • You must pay yourself the prevailing wage ($100,000-$226,000+ annually in major tech metros; lower-cost markets start around $70,000-$90,000) from day one of approval.
  • Technical role definition is critical—your job duties must show 50%+ time on specialty occupation work, not general management.

Understanding the H-1B Visa for Founding Engineers in 2026

The H-1B visa allows foreign nationals with bachelor's degrees or higher to work in "specialty occupations" requiring specialized knowledge. For founding engineers, this creates a pathway to legally build and operate U.S. startups while maintaining legal status for up to six years (initially three years, extendable).

The critical change came with the H-1B Modernization Final Rule, which officially sanctioned self-sponsorship for beneficiary-owners. Previously, USCIS required proof that an independent entity controlled the H-1B worker's employment. This effectively blocked founders who owned their companies.

Key H-1B Requirements for Founders

Under the new framework, founding engineers must still meet core H-1B eligibility criteria:

  • Educational qualification: Bachelor's degree or higher in a field related to your specialty occupation.
  • Specialty occupation role: Job duties must require the theoretical and practical application of a body of specialized knowledge.
  • Prevailing wage compliance: Your company must pay at least the DOL-determined wage for your role and location.
  • Legitimate business entity: U.S. company (LLC or C-Corp) with EIN, physical office, and sufficient capital.

Founding Engineer Role as a Specialty Occupation

The biggest pitfall for founders is describing their role too broadly. USCIS will deny petitions where the position looks like general business management rather than technical work.

Strong specialty occupation examples for founding engineers:

  • Machine Learning Engineer designing recommendation algorithms
  • Software Architect building distributed systems infrastructure
  • Data Scientist conducting statistical analysis of user behavior
  • Product Engineer implementing core platform features

Weak descriptions that trigger RFEs (Requests for Evidence):

  • "CEO responsible for all aspects of business growth"
  • "Founder managing company operations and strategy"
  • "Co-founder overseeing product development"

Your job description should show 50%+ of your time spent on duties requiring your specific degree. The remaining time can include management, fundraising, and strategic work.

The H-1B Lottery and Application Process for Startups in 2026

The H-1B process follows a strict annual timeline, with 85,000 visas available each fiscal year (65,000 general cap plus 20,000 for U.S. master's degree holders).

Timeline Overview

The application sequence spans roughly seven months:

  • November-February: Form company, establish corporate governance, draft business plan.
  • Early-mid March: Electronic registration window opens ($215 fee per beneficiary).
  • Early April: Lottery results announced.
  • April-June: File Labor Condition Application (7-10 days), then Form I-129 petition.
  • May-September: USCIS adjudication (2-6 months standard; 15 business days with premium processing).
  • October 1: H-1B status activates; work authorization begins.

Strategic Considerations for Startup H-1B Petitions

Proving business viability represents the core challenge for founding engineers. USCIS wants evidence your company can afford the prevailing wage from day one and has legitimate operations.

Essential documentation includes:

  • Financial evidence: Bank statements showing $150K+ or investor term sheets demonstrating funding
  • Business plan: Detailed product roadmap emphasizing technical development
  • Organizational structure: Employment agreement, org chart (even for solo founders)
  • Physical presence: Office address (co-working acceptable), business banking, registered agent

Responding to RFEs: A Startup's Guide

RFEs are common for beneficiary-owner petitions. Typical RFE topics include proof of business operations, evidence the beneficiary will perform specialty work, and financial ability to pay prevailing wage.

You have 30-87 days to respond. Working with experienced immigration attorneys significantly improves your chances of overcoming RFE challenges—Alma includes one free refile for Growth and Enterprise clients if the initial petition is denied.

H-1B Visa Fees and Total Costs for Founding Engineers in 2026

Understanding the full cost picture helps you budget appropriately and avoid surprises.

Breaking Down H-1B Application Costs

Government fees for LARGE employers (26+ employees):
  • Base filing fee (Form I-129): $780
  • ACWIA training fee: $1,500
  • Fraud prevention fee: $500
  • Asylum Program Fee: $600
  • Lottery registration: $215
  • Total government fees: $3,595
Government fees for SMALL employers (≤25 employees):
  • Base filing fee (Form I-129): $460
  • ACWIA training fee: $750
  • Fraud prevention fee: $500
  • Asylum Program Fee: $300
  • Lottery registration: $215
  • Total government fees: $2,225
Optional government fees:
  • Premium processing: $2,805 (increasing to $2,965 effective March 1, 2026) — guarantees 15 business days (~3 weeks) for initial adjudicative action (approval, denial, or RFE).
Professional and business costs:
  • Immigration attorney: $5,000-$15,000 (traditional firms)
  • Business formation (Delaware/Wyoming): $500-$2,000
  • Corporate governance documents: $1,000-$3,000
  • Payroll setup: $500-$1,000
Total first-year investment:
  • Large employers: $12,225-$31,400 (excluding salary)
  • Small employers: $10,225-$25,030 (excluding salary)

Alma's transparent pricing includes H-1B Cap petitions at $3,500 with administrative charges, platform access, and up to three attorney consultations included—significantly lower than traditional firms while delivering superior technology integration, real-time case tracking, and guaranteed turnaround times.

Strategies for Managing H-1B Expenses as a Startup

The largest ongoing cost is the prevailing wage obligation. For software developers in major tech metros (based on DOL 2025-2026 data):

  • San Francisco Bay Area: $135,000-$226,000 annually (Level 1-4)
  • New York City: $103,000-$175,000 annually (Level 1-4)
  • Austin, Texas: $85,000-$145,000 annually (Level 1-4)
  • Lower-cost markets: $70,000-$90,000 at entry level

Budget for 6-12 months of salary runway before filing. Having investor funding ($250K+ seed round) or existing revenue ($10K+/month) dramatically strengthens your petition.

Key H-1B Visa Requirements for Founding Engineers in 2026

Proving Specialty Occupation for a Founder Role

USCIS evaluates specialty occupation claims based on whether the position normally requires a bachelor's degree in a specific field. For founding engineers, this means demonstrating:

  • Your degree field directly relates to your job duties
  • The work requires theoretical and practical application of specialized knowledge
  • Industry standards support degree requirements for similar positions

Strong documentation includes technical specifications you've written, code repositories, patent applications, and product architecture documents showing hands-on engineering work.

The Employer-Employee Relationship for Founders

The January 2025 rule change clarified that 100% ownership doesn't automatically disqualify a founder from H-1B sponsorship. However, you still need to demonstrate your company exercises control over your employment.

Key elements to document:

  • Employment agreement: Written contract specifying duties, compensation, and termination provisions.
  • Corporate governance: Board structure (even single-member), meeting minutes, operational procedures.
  • Organizational chart: Clear reporting relationships, even if you're the only employee.
  • Payroll processing: Formal salary payments with proper tax withholding (not owner's draws).

Board oversight is not required for beneficiary-owner cases under the new rule, but having documented governance structures strengthens your petition.

Alternative Work Visa Options for Founding Engineers

The H-1B lottery creates uncertainty—approximately 74% of applicants don't get selected in the first round of any given year (though overall selection rates reach ~71% after second-round selections). Having alternative pathways ensures you can continue building regardless of lottery outcomes.

O-1A: The Extraordinary Ability Option for Founders

The O-1A visa requires demonstrating extraordinary ability through sustained national or international acclaim. Unlike H-1B, there's no lottery—you can file anytime.

O-1A works best for founding engineers with:

  • Publications in major trade or industry publications
  • Patents for technical innovations
  • High salary history demonstrating exceptional compensation
  • Awards or recognition for technical achievements
  • Significant contributions to startups or open-source projects

Alternative visa pathways offer founding engineers flexibility when H-1B timing or odds don't align with business needs.

Other Pathways Worth Considering

E-2 Treaty Investor: Available to citizens of treaty countries (UK, Canada, Germany, Japan—not India or China) who invest substantial capital ($100K+ typically). Spouse receives work authorization.

L-1A New Office: For founders with existing foreign companies operating at least one year who want to open U.S. operations. Initial one-year validity for new offices.

From H-1B to Permanent Residency: Green Card Pathways

Long-term planning matters. Beneficiary-owners pursuing green cards typically use self-petition categories that don't require employer sponsorship or PERM labor certification.

The EB-2 NIW for Entrepreneurial Talent

The EB-2 National Interest Waiver allows self-petitioning without employer sponsorship—ideal for founders. You must demonstrate your work has substantial merit and national importance, and that waiving the job offer requirement benefits the United States.

Founding engineers with successful startups often build strong NIW cases based on job creation, technological innovation, and economic contributions. While PERM-based categories remain legally available, NIW and EB-1A pathways eliminate the practical challenges of labor market testing when you own the petitioning company.

Leveraging H-1B into EB-1A for Founders

The EB-1A extraordinary ability green card shares evidentiary criteria with the O-1A visa. Building your H-1B startup creates documentation opportunities:

  • Technical publications and speaking engagements
  • Patents filed through your company
  • Press coverage of your startup's innovations
  • Industry awards and recognition
  • High compensation demonstrating market value

Alma offers EB-1A petitions at $10,000, or $7,000 if you already hold an approved O-1—combining attorney-led strategy with technology-enabled efficiency that traditional firms can't match.

Maximizing Your H-1B Application with Expert Legal Support

Self-sponsorship adds complexity that makes professional guidance valuable. The stakes are high—a denied petition means lost investment and potentially needing to leave the country.

The Value of Specialized Immigration Legal Teams

Generic immigration attorneys often lack experience with beneficiary-owner cases. Specialists understand:

  • How to frame technical roles to satisfy specialty occupation requirements
  • What financial evidence strengthens petitions for early-stage companies
  • RFE response strategies specific to founder scenarios
  • Corporate structuring that supports H-1B compliance

Alma combines attorney expertise with technology to streamline complex immigration processes. The platform provides real-time case tracking, proactive deadline alerts, and audit-ready documentation—critical for maintaining compliance during your 18-month validity periods.

How Technology Enhances H-1B Success Rates

Modern immigration platforms reduce errors and accelerate preparation:

  • Guided workflows: Step-by-step document collection reduces missed items
  • Compliance tracking: Automated reminders for renewals, LCA postings, public access files
  • Secure document vault: Centralized storage for all petition materials
  • Status visibility: Real-time updates on case progress and next steps

For founding engineers managing visa compliance while building products, these efficiency gains compound. Get started with Alma to see how attorney-led, tech-enabled immigration services can simplify your path to U.S. work authorization.

Frequently Asked Questions

Can I work on my startup while my H-1B petition is pending?

No. If you're currently on F-1 OPT, you can prepare your business (form the company, raise funds, develop strategy) but cannot perform work for the startup until your H-1B status activates on October 1. If you're transferring from another H-1B employer, you cannot start work for your new company until the new petition is approved. Violating these restrictions jeopardizes both your current status and pending petition.

What happens if my startup runs out of money after H-1B approval?

You must pay yourself the prevailing wage throughout your H-1B status period. If your company cannot make payroll, you're in violation of H-1B requirements and must either find new sponsorship within the up to 60-day grace period (discretionary, cannot extend beyond I-94 expiration) or depart the United States. This is why immigration attorneys recommend maintaining 6-12 months of salary runway before filing. Some founders mitigate this risk through concurrent H-1B employment—maintaining a part-time H-1B at another company while building their startup.

Can I hire employees before my own H-1B is approved?

Yes, your U.S. company can hire employees before your H-1B approval, and doing so actually strengthens your petition. Having other engineers on staff demonstrates business legitimacy and operational activity. The key requirement is that your company must be able to pay both their salaries and your prevailing wage. Some founders strategically hire 1-2 team members before filing to show USCIS the company has real employees beyond just the beneficiary-owner.

What if USCIS conducts a site visit to my office?

USCIS Fraud Detection and National Security (FDNS) officers occasionally visit H-1B worksites to verify petition accuracy. For founding engineers, this means your physical office should match petition descriptions. Have your employment agreement, organizational documents, and business materials accessible. If you use a co-working space, ensure you have a dedicated desk or office (not just hot-desking) with some company signage. Site visits finding discrepancies between petition claims and reality can result in petition revocation.

How does the 18-month validity period affect my green card timeline?

Beneficiary-owner H-1B petitions receive 18-month initial validity instead of the standard three years. This means you'll file renewals more frequently—every 18 months rather than every three years—adding administrative burden and legal costs. However, this doesn't directly affect green card processing. You can file EB-1A or EB-2 NIW petitions while on H-1B status, and if your I-140 is approved, you may qualify for H-1B extensions beyond the normal six-year maximum while your green card application remains pending.