This article was originally published in Unshackled, co-authored by Soundarya Balasubramani and Sameer Khedekar.
Embarking on an entrepreneurial journey is a challenging endeavor for anyone, but for immigrant students in the United States, it presents a unique set of obstacles. In June 2022, when Unshackled was still in the works, we emailed 2,500 people, primarily immigrants on temporary visas, and asked a simple question:
What are the top 3 questions you would like Unshackled to answer?
Within a few days, we got over 300 questions from the community. Surfing through them all, the most asked question on the F-1 OPT was this:
Can I start a company on my F-1 visa?
In this article, we’ll answer this question and share insights on how you can start something of your own as a student.
This article is an excerpt from “Chapter 2: Excellent As A Student” in the book Unshackled, co-authored by Soundarya Balasubramani and Sameer Khedekar.
Starting a Company on F-1
Here’s the good news: You can incorporate a company on an F-1 student visa and, by extension, on OPT and STEM OPT.
What’s more, you can do it without ever entering the United States on a visa.
However, you probably want to do more than just incorporate a company if you’re an aspiring entrepreneur. You want to additionally raise money, hire employees, build products, and generate revenue. Now that’s where it starts getting tricky. Before we share how you can start and run a company legally as a student, let’s detour for a minute and examine how a different visa provides useful insights into this circumstance.
B-1 As A Barometer
The truth is, the USCIS does not have an article titled Things You Can Do On F-1 As An Entrepreneur. (We wish it did!)
So the closest guidance is what the government has shared about the B-1 visa. The B-1 is a temporary business visa meant for folks who participate in “business activities.” These travelers cannot technically work but can conduct business. The government has some guidance on what you can and can’t do on a B-1 visa.
Table: What you can and cannot do on a B-1 visa
| What you can do on a B-1 | What you can’t do on a B-1 |
| 1. You can engage in negotiations to close contracts. | 1. You can’t seek or engage in employment. |
| 2. You can attend conferences, seminars, conventions, or exhibitions. | 2. You can’t study. |
| 3. You can facilitate and participate in meetings with clients, business associates, partners, etc. | 3. You can’t provide goods or services that people would typically pay for, even if you are not paid (aka, you can’t work). |
| 4. You can undertake independent research. | |
| 5. You can make investments and purchase business-related materials or goods. |
Now, since there is no specific guidance for F-1 students, immigration lawyers use the B-1 as a reference – or a barometer – to gauge what activities are allowed on an F-1 student visa before getting work authorization. In the table below, we’ve mapped activities undertaken by entrepreneurs to what’s allowed under the B-1 visa.
Table: Entrepreneurial activities allowed on F-1 before work authorization
| Activities By Entrepreneur | Is It Allowed On B-1? |
| 1. Conducting market research and building a business plan | Yes (“You can undertake independent research”) |
| 2. Interviewing and getting feedback from customers | Yes (“You can undertake independent research”) |
| 3. Consulting with providers regarding forming the entity | Yes (“You can consult with business associates”) |
| 4. Meeting with and raising money from investors | Yes (“You can engage in negotiations”) |
| 5. Purchasing inventory, equipment, office space, etc. | Yes (“You can make investments and purchases”) |
| 6. Building and developing your product | No |
| 7. Hiring and managing employees | No |
| 8. Managing the day-to-day operations | No |
| 9. Being compensated through salary or other remuneration. | No |
The activities with a “No” against them all require valid work authorization. They are strictly prohibited on an F-1 student visa, regardless of if the company is in the U.S. or elsewhere. For example, although you can raise money, you cannot work for the company you just raised money for until you get work authorization (through the EAD or Employment Authorization Card). In most cases, it just makes sense to have work authorization in place before you raise.
Lawyer Up: This can quickly get tricky since the government can be binary on what is and isn’t permitted. They may consider all the activities above to be “work.” So don’t start your venture until you talk to a lawyer with experience helping entrepreneurs navigate this!
That said, the circle of what you can do expands when you get work authorization for your startup through the OPT.
Being self-employed on your OPT
Here’s some great news: you can be self-employed on an OPT.
