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AFAIK you can establish an LLC on H1B, but you cannot be employed by it, unless your H1B is sponsored by that LLC...

This is the right answer. You can establish (own) a US LLC irrespective of any Visa you hold (or don't hold) in US or live in another country. You just can't work for LLC in US if you don't have a Visa that authorizes you to work in US and/or for that LLC. But you can work for LLC in a different country.

Once your LLC has employees/revenue and can convince INS of LLC being legitimate ongoing business and not a shell to get you work authorization, you can have your LLC sponsor you for a work authorization.

Potential workaround: Don't draw a salary from your LLC. Hire contractors to do most of the work and pay them from LLC. Travel to foreign destinations time to time and classify them as business trips for 'working for LLC'.

I totally agree with you. We do have some unpaid interns who are getting good learning experience. We are in process of getting a contractor on board to help us take our coding responsibilities. I do like the idea of travelling to foreign destination for business trip.

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