F-1 Visa: Can Students Legally Run a Startup in the US?

Yes, it is legally possible for international students on F-1 visas to incorporate and run their own startup while maintaining F-1 visa status, but there are strict limitations due to the employment and income restrictions tied to the visa. Here's how it works:

Key Considerations:

1. Incorporating a Company:

o As an F-1 visa holder, you are allowed to incorporate and own a company in the U.S. You can act as a shareholder, member, or owner of the business.

o However, you cannot engage in activities that are considered unauthorized employment, such as directly working for the company or receiving a salary, unless explicitly authorized.

2. Running the Company:

o You can be involved in the company's high-level decision-making (e.g., as a director or shareholder) but must avoid engaging in operational activities or day-to-day tasks unless you have proper work authorization.

o Operational roles (e.g., coding, marketing, managing employees) without authorization may violate your F-1 status.

3. Work Authorization Options: To legally work for your startup, you can explore these options:

o Curricular Practical Training (CPT):

 If your school offers CPT and your business activities are directly related to your field of study, you can apply for CPT and work for your startup.

 CPT must be approved by your Designated School Official (DSO) and be part of your academic curriculum.

o Optional Practical Training (OPT):

 Post-graduation or during your program, you can use OPT to work for your startup if the work is directly related to your field of study.

 During OPT, you can legally work full-time for your own company.

o STEM OPT Extension:

 If your field of study qualifies for the STEM OPT extension, you can extend your work authorization for an additional 24 months while working for your startup.

4. Alternative Options:

o Partnership or Delegation:

 Partner with someone who is authorized to work in the U.S. (e.g., a U.S. citizen, green card holder, or other visa holder with work authorization) to handle operational tasks.

o Change of Visa Status:

 Consider transitioning to a visa that allows entrepreneurial activities, such as the E-2 Treaty Investor visa (if eligible), O-1 visa for extraordinary ability, or H-1B through your company.

Steps to Incorporate and Operate Legally:

1. Incorporate the Business:

o Form the company (e.g., LLC or corporation) with yourself as a non-operational shareholder or director.

2. Obtain Work Authorization:

o Apply for CPT, OPT, or STEM OPT if the business activities align with your academic program.

3. Consult Legal and School Authorities:

o Discuss your plans with your DSO and seek guidance from an immigration attorney to ensure compliance with F-1 visa rules.

Important Notes:

• Violating F-1 visa conditions by engaging in unauthorized employment can lead to severe consequences, including the termination of your SEVIS record and possible deportation.

• Always document your activities and maintain compliance with immigration laws.

Conclusion:

You can legally incorporate and run a startup on an F-1 visa, but you must avoid unauthorized employment unless you have CPT, OPT, or STEM OPT authorization. Partnering with someone authorized to work or transitioning to a visa more suited for entrepreneurs may provide more flexibility.