[flurp]

I think J-1 would be the most legally correct (IANAL and all but I have some J-1 experience). YC should be able to bring founders on board. Since J-1 is for education and the program is basically an education.

J-1 is also quite openly (ab)used to bring employees over who do not qualify for a H1B or O-1.

Only important thing to remember is to pay the J-1 "student" otherwise they are (depending on origin country, but most I think) subject to a rule preventing said person from returning to the US within two years.

I think J-1's are 18 months max. Plenty of time to get a business up and running. By that time if the founder is successful (e.g. take on more investment) they could probably employ themselves with a H1B or E-2 ("investor") visa.

But I'm sure the J-1 has a bunch of issues concerning founding legal entities - this part I have no experience or knowledge of.

[dirkdk]

No, as a founder you can forget to get a H1B visa, even 2 years in. Unless you have a legit board of directors and you can demonstrate you could potentially be fired, they will argue that you started the company to employ yourself and get yourself a visa that way.

[HistoryInAction]

Two year mandatory return for many origin countries can make J-1 messy.

Also, J-1 being run by State rather than DHS/USCIS introduces some extra weird things.