Can an H-1B holder start a company with a full-time job?

Question details

As per the new 2024 H1B Rules, can an H1B holder start a company with 100% ownership (possibly working on out-of-office hours/weekends) while holding a full-time job at another company?

 

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Yes, an H-1B holder can start a company while maintaining a full-time job, but there are key conditions:

  • Concurrent H-1B: You must file for a concurrent H-1B for your own company.
  • Ownership: You can own 100% of the company; USCIS allows majority ownership.
  • Job Role: At least 51% of your work must be in your H-1B specialty (e.g., software development), not just as a CEO.
  • Salary & Compliance: Your company must pay you a prevailing wage and follow all standard H-1B rules.

While legally possible, the process is complex and must be carefully structured to meet all H-1B regulations.

 

H-1B cap exempt visa pros and cons

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I am on OPT, which started on 19th February 2024. I joined my first job on OPT on 8th July 2024 and lost one attempt at the H1B lottery. I work for a research foundation, and they can sponsor me for an H1B-exempt visa. I have a degree in computer science, and I ultimately want to work in corporate America, which means I need to get an H1B cap-subject visa.

My question is whether I should get this H1B exempt visa through my current organization or if I should try to switch to a different company and use my remaining two attempts at the lottery. I ask this because once I get the H1B exempt visa and change my status from F1 to H1B, I won’t be able to switch to a for-profit organization and would be stuck in H1B exempt visa category. H1B-exempt visa jobs are less and pay less. And though the option of an H1B concurrent visa is there but I feel in reality, it will be challenging to get a company to allow me to work for another company due to NDA requirements and also allow part-time work. (But I would appreciate your advice on this since you must have had client experience.)

Can you advise me on how to get the H1B exempt visa now? Does it have any advantage, given I want to transition to a corporate company? What options will I have if I switch to a for-profit organization? Also, I am currently funded through a grant, and it has runway till July 2026.

I have seen people saying not to get an H1B exempt visa as you will be stuck in that category, but I also feel that any H1B visa will be better than F1. 

 

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If you have the opportunity to get an H-1B cap-exempt visa through a research foundation, you should take it. Having cap-exempt H-1B status does not prevent you from continuing to apply for the regular H-1B lottery.

Additionally, you can hold both a cap-exempt and a cap-subject H-1B concurrently as long as you maintain your cap-exempt job. If you win the H-1B lottery through a for-profit employer, you can easily switch to a regular H-1B.

Taking the cap-exempt route ensures immediate work authorization and does not limit future opportunities. The idea that you’ll be "stuck" in cap-exempt status is incorrect.

 

Gap in approval dates between change of status from one status to another

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I applied for a change of status from an H1B to an H4 visa via I-539 in May 2024 as I got laid off, with my last working date being 3/19/2024.

The document was received by USCIS on 5/10/2024 and confirmed by I-797C, Notice of Action dt 5/20/2024.

On 12/26/2024, my case was approved. I received I-797A Notice of Action with Approval on 1/7/2025. The approval date shows the validity of H4 from 12/23/2024 to 03/13/2027.

On my I-539 I had asked for the change of status to be effective from 05/15/2024 as my 60-day period would run out on 5/19/2024.

However, the H4 approval shows the start date as 12/23/2024. So, my question is, what status was I in during the period 5/19/2024 and 12/23/2024, and will I face any problems if I go for visa stamping? Do I need to write to USCIS and ask for a date to be changed to 5/15/2024 to avoid issues in the future?

 

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If you applied for a change of status (COS) while still in valid status—such as H-1B plus the 60-day grace period—you are not considered out of status while your application is pending. In this case, since you applied for H-4 within the grace period, the period between May (filing date) and December (approval date) is classified as an authorized period of stay, meaning it does not count as unlawful presence.

Even though the approval date is later, you are not subject to the three-year bar because you remained legally in the U.S. while the petition was pending. There are no negative implications for your status.

 

Relocating to India with GC, how to apply for US citizenship?

Question details

We primarily have questions on relocation to India and possibilities.

My wife and I want to retain our Green Cards and eventually get US citizenship. We are just 3 years away from getting our US citizenship.

However, we want to relocate to India for our aging parents. We want to be able to relocate to India now for a few years (5 years), but we also don’t want to miss out on the citizenship opportunity when we are this close to getting our US citizenship. Is this even possible without the hassle of staying 6 months in the US and 6 months in India, and would there be any tax implications if one of us continues to work for the same employer in the US remotely from India?

We are aware that we can take 2 years' permission by filing Form I-131 and staying outside the US for 2 years. However, we need more than 2 years to stay outside the US. Also, the citizenship clock resets if we take this option. Is there a way to avoid this?

 

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If you plan to relocate to India with a green card before obtaining U.S. citizenship, it can significantly complicate the naturalization process. To apply for U.S. citizenship, you must meet physical presence requirements: at least 2.5 years in the U.S. over the last five years and no single absence of a year or more. If you stay outside the U.S. for over six months but less than a year, you may need to provide an explanation.

A re-entry permit (Form I-131) allows you to stay outside the U.S. for up to two years without losing your green card, but it does not help with citizenship requirements. Form N-470 can protect your eligibility in limited cases, such as working for a U.S. company’s foreign branch, but it does not guarantee naturalization.

If you stay abroad for more than a year, you will likely need to restart your five-year residency requirement (or four years and one day if a re-entry permit was used). While re-entry permits can be renewed in certain cases, they do not protect your citizenship timeline.

Best advice: Obtain U.S. citizenship first and then relocate, as naturalized citizens can live abroad indefinitely without affecting their status. Please consult your lawyer regarding this.

 

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Visa Bulletin For March 2025

Number 99

Volume X

Washington, D.C

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A. STATUTORY NUMBERS FOR PREFERENCE IMMIGRANT VISAS

This bulletin summarizes the availability of immigrant numbers during March for: “Final Action Dates” and “Dates for Filing Applications,” indicating when immigrant visa applicants should be notified to assemble and submit required documentation to the National Visa Center.

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H-1B Quota 2025

We recommend that the H-1B lottery registration process should be planned and initiated now to ensure that it is ready to be submitted once the registrations open from noon Eastern on March 7, 2025 through noon Eastern on March 24, 2025. During this period, prospective petitioners and representatives must use a USCIS online account to register each beneficiary electronically for the selection process and pay the associated registration fee for each beneficiary.

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