[sinatra]

Considering H1B visa only allows you to work for the company that sponsored your visa, what you're describing sounds illegal, not just a loophole. I'm not saying they shouldn't do so. And I'm also not saying anything about whether the H1B requirements make any sense. I'm just saying that hopefully they're aware that what they're doing is illegal and may hurt their companies at any moment.

[Joky]

H1B is transferrable any time, even before you start working for the company that sponsored it.

[sinatra]

I'd imagine transferring H1B to your own company will have the same issues that applying H1B for your own company will.

[surfmike]

They were co-founders of the same company.