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Many YC founders did the same thing. They worked on their own startups with no salary under a student visa, and applied for H1B/O1 visas once they got funding. Is this illegal?

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Yes, working on a startup without pay under a student visa (such as F-1) can be legally problematic. While student visas allow some employment (like CPT or OPT for F-1 students), “self-employment” is generally restricted, especially if it involves day-to-day work or responsibilities without proper authorization. Founders may violate visa terms if their role in the startup constitutes “unauthorized employment,” even if unpaid.

For H-1B or O-1 visa applicants, founders need to prove an employer-employee relationship with their startup and show funding or sufficient structure, which complicates the path from student visas.

Sources: • USCIS Policy Manual on Employment for F-1 Students • 8 C.F.R. § 214.2(f)

Yes. That's illegal.

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