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I'm on H1B trying to start a company. I have been working in USA for 10 years now and was on H1B the whole time (Born in India). What are my options to start a company? I have a co-founder in mind in similar situation with H1B visa. How much money should I raise to be able to sponsor H1B for my own company?

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As another guy from India who was on H1B and started a company. You can start a company but you may not work for it. You can attend the board meetings and that's the extent of your involvement. If you do anything, even clean the floors of the office you are technically breaking the law as your h1b allows you to only work for the employer that sponsored your Visa.

How do they enforce these things? I'm sure if you do something silly like show up in the company's payroll you'll suffer consequences but this rule is pretty nuanced.

The law and the practical application of the same by USCIS are different. Although doing things on behalf of your own company without receiving cash compensation could still be considered work requiring work authorization, USCIS is most concerned about receiving cash compensation - this is a line you cannot cross. But as noted above, this analysis is nuanced so I would recommend that you consult with an attorney before taking any steps because, for example, there are steps you could take that would allow you to work for your company now without leaving your current job.

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