With the recent updates to the H-1B visa regulations effective January 17, 2025, potential changes have been introduced that impact entrepreneurs and international students interested in self-sponsorship through their own companies. The question of whether owning a business and sponsoring one’s H-1B visa is viable has become more significant under these new rules. Let’s explore the updated regulations, their implications, and actionable steps for aspiring entrepreneurs.
What’s New for Beneficiary-Owners in 2025 (FY2026)?
The updated H-1B rules explicitly address scenarios where the H-1B visa beneficiary owns a controlling interest in the sponsoring entity. Here are the key changes and clarifications:
-
Eligibility for Beneficiary-Owners:
- The new rules confirm that beneficiaries who own more than 50% of the sponsoring company (or have majority voting rights) can qualify for H-1B status.
- However, the initial H-1B petition and the first extension for such cases are limited to a maximum validity of 18 months each.
-
Employer-Employee Relationship:
- To qualify, the petitioning company must demonstrate that a legitimate employer-employee relationship exists. This includes providing evidence that the beneficiary is not entirely autonomous and reports to a higher authority, such as a board of directors.
-
Enhanced Program Integrity:
- USCIS will scrutinize these cases to ensure there’s no misuse, including verifying the authenticity of the employer’s business activities and their ability to pay the prevailing wage.
Viability of Self-Sponsorship for International Students
For international students transitioning from Optional Practical Training (OPT) or Day 1 CPT to H-1B, self-sponsorship through their own company may seem attractive. However, this path has its pros and cons:
Pros:
- Control: Entrepreneurs can align their visa status with their business goals.
- Flexibility: Owning a business allows for creating a role that directly aligns with their field of study and experience.
Cons:
- Stringent Requirements: Establishing a clear employer-employee relationship and maintaining compliance can be challenging.
- Cost: Filing fees, attorney costs, and maintaining a legitimate business entity can be expensive.
- Risk of Denial: With increased scrutiny under the new rules, petitions may face higher rejection rates if documentation is inadequate.
Steps to Sponsor Yourself on H-1B
- Incorporate your company in the U.S., ensuring it complies with state and federal laws.
- Open a business bank account and establish a proper payroll system.
- Create a board of directors or supervisory committee that oversees the beneficiary-owner.
- Outline job duties and demonstrate that the position requires a “specialty occupation.”
- Submit a Labor Condition Application (LCA) to the Department of Labor.
- File Form I-129 with USCIS, including all required evidence (contracts, payroll records, organizational charts, etc.).
Be prepared for potential site visits from USCIS to verify the legitimacy of your business operations.
Get more tips on how to be an entrepreneur in the U.S. as an international student from our blog: Entrepreneurship on F1 Visas: How to be Your Own Boss in the U.S.
How Do the New Rules Impact RFE Rates?
The new rules aim to strengthen program integrity, which could increase scrutiny for beneficiary-owner petitions. Requests for Evidence (RFEs) are often issued to verify the employer-employee relationship and the legitimacy of the business. While overall RFE rates may rise for self-sponsorship cases, careful preparation and comprehensive documentation can mitigate this risk.
What Saleray You Should Give Yourself?
Entrepreneurs must pay themselves the prevailing wage for the specialty occupation, as mandated by the Department of Labor. The business must demonstrate financial capacity to meet this obligation. While salaries in self-sponsored positions may initially be modest, they should align with industry standards over time to ensure compliance and attract talented employees.
Actionable Tips for Success
Work with an Immigration Attorney
Partner with an experienced attorney who specializes in H-1B petitions to navigate the complexities of self-sponsorship.Leverage New Flexibilities
The updated rules broaden opportunities but require clear evidence of compliance. Focus on providing robust documentation.Start Early
Preparing the necessary documentation and setting up a business takes time. Start planning months before filing the petition.
Conclusion
The updated H-1B rules for 2025 have created new opportunities for entrepreneurs, including beneficiary-owners. While self-sponsorship remains a challenging route, it’s more structured and attainable under the clarified regulations. With careful planning, international students and aspiring entrepreneurs can use these updates to build a pathway toward long-term career success in the U.S.
If you’re considering self-sponsorship, start exploring your options today, and don’t hesitate to consult an immigration expert to guide you through the process. The opportunities are there—seize them!
Disclaimer: This article is for informational purposes only and should not be considered legal advice. Readers are encouraged to consult a licensed attorney for professional legal guidance tailored to their specific situation.